A long-awaited transformation of a former industrial site in Holroyd has been given the green light, with the NSW Government approving the $1.2 billion Crescent Parklands masterplan that will deliver more than 1,200 new homes just south of Parramatta.

The State Significant Development approval clears the way for a large-scale mixed-use precinct at <a href="https://www.apartments.com.au/new-apartments/1-crescent-street-holroyd-nsw-2142">1 Crescent Street</a>, replacing an underutilised site with a coordinated residential community anchored by new open space, retail, and commercial uses.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> for WA-based developer Tiberius, the approved scheme comprises seven buildings arranged across two precincts. In total, the development will deliver 1,227 apartments, including 201 allocated as affordable housing, alongside approximately 2,500 sqm of retail and 5,000 sqm of commercial space within a mixed-use podium.

<img alt="Tiberius’ Crescent Parklands to deliver 1,200+ homes in major Holroyd transformation" data-entity-type="file" data-entity-uuid="1cc82dd2-8184-4b86-8665-90653147820d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Crescent%20buildings.png?VersionId=2ZmVDc_Rfc4AzQ6ShzZJlvdZnACLerVM" />

The project is structured as a masterplanned precinct rather than a standalone tower. Buildings 1 to 4 will rise from a shared podium with shop-top housing, while Buildings 5 to 7 are positioned closer to the northern park interface as residential flat buildings. The built form has been carefully modulated to balance density with amenity, with the design resolving building separation, solar access, and wind impacts at a precinct scale.

A significant focus of the design is the activation of Crescent Street and the integration of public domain. The submission notes that “individual townhouses [were] removed for community based functions to Crescent Street to increase activation and surveillance,” reinforcing a more urban and publicly engaged street edge. Retail, commercial tenancies, and resident amenity spaces are concentrated along this frontage and within the podium to support day-to-day activity.

The landscape strategy underpins the project’s identity, with a network of pedestrian connections, landscaped corridors, and open spaces linking the site internally and to its surroundings. The design prioritises permeability, delivering “increased uninterrupted flow between spaces for pedestrian access” and improved connections through to the adjoining parklands.

<img alt="Tiberius’ Crescent Parklands to deliver 1,200+ homes in major Holroyd transformation" data-entity-type="file" data-entity-uuid="19282454-ab2f-4e2c-866f-4b35cf4283d4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Crescent%20masterplan.png?VersionId=JQdWGYI5B5R1lzmK4omYOp_8KLPkT4Bv" />

Buildings within the western precinct are oriented toward the park, shaping a residential offering defined by proximity to open space. The design describes this approach as creating apartments “immersed in nature with apartments facing the park,” positioning the landscape as a central organising element of the masterplan.

The broader architectural response addresses both infrastructure and context, with taller elements capturing long-range views toward Parramatta while setbacks and separation distances mitigate impacts on surrounding residential areas. Sustainability initiatives, including solar optimisation, cross-ventilation, and integrated landscape systems, are embedded across the scheme.

Located approximately one kilometre south of Parramatta CBD, the 3.6-hectare site is bounded by Crescent Street, Woodville Road, and Holroyd Sportsground. It benefits from strong access to public transport, including nearby bus routes and train stations, and sits within a rapidly evolving corridor earmarked for increased residential density. The design also strengthens connections between surrounding green spaces, including Holroyd Sportsground and Parramatta Parklands.

The approval follows several years of planning, including a rezoning process that enabled significant uplift in height and density across the site. With determination now secured, Crescent Parklands is positioned to play a major role in delivering new housing supply within Greater Parramatta’s growth area.

Joel Robinson

Tiberius’ Crescent Parklands to deliver over 1,200 homes in major Holroyd transformation

A new State Significant Development application has been lodged over land at <a href="https://www.apartments.com.au/new-apartments/33-43-marion-street-parramatta-nsw-2150">33–43 Marion Street</a>, Parramatta, proposing a high-rise mixed-use tower that leverages planning incentives to deliver a substantial pipeline of new housing, including a dedicated affordable component.

The scheme, currently on exhibition, combines a shop-top housing development with a concurrent rezoning, positioning the site for a significant uplift in density within Parramatta’s evolving southern CBD fringe.

The proposal, designed by <a href="https://www.apartments.com.au/architects/fuse-architecture-0">Fuse Architects</a> for CN Marion, would replace the existing buildings with a 37-storey mixed-use tower, delivering 296 apartments above a retail podium with six basement levels on the 2,376 sqm site.

The residential mix comprises 58 one-bedroom, 207 two-bedroom, and 31 three-bedroom apartments, with communal facilities located on the second level and the rooftop. Ground-level activation is driven by retail and food and beverage tenancies, alongside a publicly accessible through-site link designed to improve pedestrian permeability.

The project includes 194 car spaces, five motorcycle spaces, and 348 bicycle spaces, reflecting a transit-oriented approach in a location directly adjacent to the rail corridor and within walking distance of Harris Park Station.

<img alt="First Look: Plans lodged for 37-storey mixed-use tower with affordable housing at 33–43 Marion Street, Parramatta" data-entity-type="file" data-entity-uuid="3db873ea-62f0-437b-8a6a-eeda154d2dee" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Marion%20building.png?VersionId=YwzBv8OVHwyRnMLGX4slU7QyhTyMZeOX" />

The design adopts a podium-and-tower composition, with a three-storey street wall addressing Marion Street and a reduced two-storey interface responding to adjoining heritage cottages.

A key component of the proposal is the integration of affordable housing under the NSW Government’s in-fill affordable housing pathway, with units to be retained for a minimum of 15 years. This is paired with a broader public domain strategy that emphasises permeability, deep soil planting, and a landscaped through-site link.

“The strategy prioritises a permeable, well-activated public realm and supports a compact tower form to minimise the building’s footprint while enhancing the quality of the ground-level experience,” the design report states.

The proposal includes a central landscaped courtyard, rooftop communal areas, and planting strategies aligned with local environmental conditions and cultural narratives.

<img alt="First Look: Plans lodged for 37-storey mixed-use tower with affordable housing at 33–43 Marion Street, Parramatta" data-entity-type="file" data-entity-uuid="f0e6c165-9967-4d20-9216-e5b8357c85ba" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Marion%20site.png?VersionId=SRod222LwgDmGZJmJY0wTbK39UrWZLSD" />

The site occupies a prominent corner of Marion and Station streets, roughly 100 metres from Harris Park Station, within a precinct earmarked for significant intensification. While the immediate context is characterised by low- to mid-rise buildings and heritage dwellings, planning controls and recent proposals point to a transition toward high-density development.

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Parramatta has been starved of new apartment supply in recent years. Builder-developers Deicorp and Coronation are the only two currently progressing projects in the suburb. Coronation is nearing completion of <a href="https://www.apartments.com.au/new-apartments/8-phillip-street-2-10-phillip-street-parramatta">8 Phillip Street</a>, which will be the tallest building in Western Sydney once finished, while Deicorp is delivering <a href="https://www.apartments.com.au/new-apartments/cosmopolitan-by-deicorp-parramatta-34-hassall-street-parramatta-nsw-2150">Cosmopolitan</a>, a development comprising over 600 apartments.
</section>

First Look: Plans lodged for 37-storey mixed-use tower in Parramatta

A substantial uplift in height and density is being tested in Lane Cove, with a 225-apartment scheme at 300 Burns Bay Road now on public exhibition as a State Significant Development alongside a concurrent rezoning.

The proposal by <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> would see the demolition of an existing commercial building and associated structures, replaced by a residential development ranging from seven to 15 storeys.&nbsp;

The scheme delivers 225 apartments, including 34 designated as affordable housing, positioning it within the NSW Government’s accelerated Housing Delivery Authority pathway.

The development is arranged as three interconnected residential flat buildings, a response to the site’s long, narrow configuration and sloping topography.&nbsp;

<img alt="First look: 225-apartment Lane Cove tower proposal enters exhibition under State Significant pathway" data-entity-type="file" data-entity-uuid="c325d40c-ead5-45f4-9d77-5a446b23acc0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Lane%20Cove%20pers.png?VersionId=hsCJxT5hj.5kzA6AMInyan1x8mcHeRez" />

<a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a>, the project’s designer, describe a built form that is “divided into three sections, each connected by intermediate infill slots which are recessed to establish greater setbacks and further articulate the development.”

Across the scheme, apartments are supported by communal amenity at ground and rooftop levels, including landscaped open space and a rooftop pool. Basement and lower ground levels accommodate parking, storage, and building services, while a new public park is proposed along the eastern edge of the site, replacing part of the existing built form.

The architectural response has been shaped by the site’s pronounced fall towards the Lane Cove River, with building heights stepping down from west to east to reduce visual bulk and respond to adjoining bushland.&nbsp;

The design report notes that “the development has been carefully designed to integrate with the existing topography with the placement of massing and floor levels adjusted respecting the site’s inherent characteristics.”

<img alt="First look: 225-apartment Lane Cove tower proposal enters exhibition under State Significant pathway" data-entity-type="file" data-entity-uuid="31cc13a5-bc8b-4dc3-b9b1-07c6ec33a82b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Lane%20cove%20site.png?VersionId=NiyH3LimQwiHsE6Q7I5g4Grpr5fRdZaX" />

The project is being advanced through a concurrent rezoning process, seeking to increase the permissible height and floor space ratio beyond current Lane Cove LEP controls of 21 metres. Under the proposal, height would reach up to 54.5 metres, reflecting a shift toward higher-density outcomes in well-located urban areas.

Located on a 7,595 sqm site, the development sits within an established high-density residential pocket characterised by mid-rise apartment buildings set within a bushland setting. The site is within close proximity to Burns Bay Reserve, the Lane Cove River, and an extensive network of open space, reinforcing its strategic positioning for increased housing supply.

Level 33 is doing through the Housing Delivery Authority to try and get its Homebush project of <a href="https://www.apartments.com.au/news/nsw/level-33-adds-to-2-000-unit-pipeline-with-new-two-tower-homebush-plans">more than 300 apartments approved</a>.

The developer has over 2,000 apartments in the pipeline, predominantly in Wollongong.

First look: Level 33 proposes 225-apartment Lane Cove tower

Following the completion of its debut Palm Beach apartment development EVA on Tenth, local Gold Coast developer Chippendale Group has launched its latest project in the in demand area.

Chippendale Group, led by fifth-generation Palm Beach local Daniel Chippendale, has kicked off sales at&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/new-apartments/elise-palm-beach-3-twenty-fifth-avenue-palm-beach-qld-4221&amp;source=gmail&amp;ust=1775884443343000&amp;usg=AOvVaw2GyxnGQKU2XXwTzQ8_VHgi" href="https://www.apartments.com.au/new-apartments/elise-palm-beach-3-twenty-fifth-avenue-palm-beach-qld-4221" target="_blank">ELISE</a>, 68 coastal-infused apartments just 40 metres from the sand on Twenty Fifth Avenue.

[smartcode_project:default project_id=150992 project_image_fid=366023]

Construction is already well underway, a signal of confidence to buyers, following the demolition of the two-storey walk-up and 1990s built house that sat on two sites that have been amalgamated to create a prime corner block.

There are a mix of two- and three-bedroom apartments on offer, starting from $1.4 million.

[smartcode_project:default project_id=150992 project_image_fid=366024]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, Elise responds to its coastal setting through a horizontal architectural form with recessed glazing and layered landscaping. The design aims to balance light, shade and sea breezes while creating a defined presence along the streetscape.&nbsp;

Residences have been planned with an emphasis on outdoor living suited to the Gold Coast climate, including large balconies designed as usable outdoor rooms. Interiors will feature a selection of European appliances and natural materials, including New Zealand wool carpets.&nbsp;

[smartcode_project:default project_id=150992 project_image_fid=366033]

Resident amenities are centred around a wellness-focused ground-level precinct. There will be private access to a heated swimming pool, sauna, cold plunge and gym, alongside a residents’ lounge with dining and entertaining space.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/elise-palm-beach-3-twenty-fifth-avenue-palm-beach-qld-4221">ELISE</a> is located towards the northern end of Palm Beach, which puts it just a short walk to Tallebudgera and Currumbin Creeks. At the end of the street is the newly extended Oceanway, a 36-kilometre pathway that runs up and down the Gold Coast.

Chippendale is targeting a late 2027 completion date for <a href="https://www.apartments.com.au/new-apartments/elise-palm-beach-3-twenty-fifth-avenue-palm-beach-qld-4221">ELISE</a>.

[smartcode_project_cta:default project_id=150992]

Chippendale Group launches Elise, 40 metres from the Palm Beach sand

Sydney developer <a href="https://www.apartments.com.au/new-apartments/31-41-o-hara-street-marrickville-nsw-2204">Third.i</a>&nbsp;has announced a new transport-oriented development in one of Sydney Inner West’s most sought-after metropolitan locations, delivering much needed housing within steps of world-class public transport and vibrant village life.

Located at&nbsp;31-41 O’Hara St,&nbsp;Marrickville, the proposed mixed-use development will include around 300 apartments, with up to 17 per cent dedicated to affordable housing, reinforcing Third.i’s commitment to creating inclusive, well-connected communities that support a diverse mix of residents who keep Sydney’s neighbourhoods thriving.

Located just 100 metres from the new Metro station, the development places residents within minutes of the CBD while offering seamless access to the Inner West’s cafés, retail, and local services. Anchored within a thriving local centre, the project supports everyday living without reliance on cars, while also delivering new public open space for the local community, including a new park and landscaped green areas, alongside high-quality private resident amenities.

Florian Caillon, Head of Acquisitions for Third.i Group, said the project builds on the company’s ongoing work alongside the NSW Government to deliver housing and amenity alongside major transport infrastructure. Amenity includes an activated pedestrianise retail strip that connects Illawarra Road down to the pocket park, and health and wellness facilities.&nbsp;

“Delivering housing of this scale within an established village is a rare opportunity, and few companies have achieved residential outcomes of this size at a village centre," Caillon said.

"We are excited to set a new standard for urban living in the heart of Marrickville,” he said.&nbsp;

The inclusion of affordable housing has been welcomed by frontline workers.

“We are supportive of developments which will allow essential workers like nurses, midwives and carers, the opportunity to live in the communities they care for," said&nbsp;Michael Whaites, General Secretary of the NSW Nurses and Midwives’ Association..

“Many healthcare workers tell us they would like to live closer to where they work, but are being priced out of the market, forcing them to move further away.&nbsp;

“Dedicated apartments for essential workers will support recruitment and retention in local hospitals and aged care facilities, helping to strengthen our health system.”

The project has been declared State Significant Development (SSD) by the Housing Delivery Authority (HDA).

Third.i to deliver 300 apartments in Marrickville TOD precinct

Home Loans

Australia&rsquo;s biggest bank, CBA, has increased its 2- and 4- year fixed home loan rates by 0.05 per cent for owner-occupiers paying principal and interest. 
&nbsp; 
It is the third time CBA has hiked its 4-year fixed rate this year, but the first time the bank has hiked its 2-year rate for owner-occupiers.

&ldquo;CBA is factoring in a rise in the cost of funding over the next couple of years, particularly now the RBA&rsquo;s term funding facility has closed.&rdquo; 
&nbsp; 
A recent economic insights report from CBA shows around half of its new owner-occupier loans settled in June were fixed, with the two-year rate the most popular. 
&nbsp; 
&ldquo;Despite today&rsquo;s hikes, CBA still has one rate under 2 per cent &ndash; the bank is not going to let go of that easily,&rdquo; said RateCity.com.au research director, Sally Tindall. 
&nbsp; 
&ldquo;CBA&rsquo;s two-year rate was extremely competitive and attracting significant interest. By keeping it just under 2 per cent, the bank is trying to keep momentum going at a more sustainable price,&quot; she said. 
&nbsp; 
Analysis of the RateCity.com.au database shows over the last two months, there have been more hikes than cuts in every fixed rate category with the exception of 1-year rates. 
&nbsp; 
But ME Bank has cut rates across a few home loans from early August, while boosting its refinance cashback offer to $3,000.

The cuts were across its two-year fixed and variable home loan range.

The two-year fixed rate Member Package home loan was cut by 20 basis points to 1.89% p.a. (3.17% p.a. comparison rate*) - a &quot;record low&quot; for the lender.

This particular comparison rate applies to owner occupier borrowers with 80% LVR i.e. a 20% deposit, paying principal &amp; interest.&nbsp;

The same advertised rate applies to other LVRs in the product line, but different comparison rates apply.

A number of other home loans - both fixed and variable - with different LVRs were also cut by between 5 and 31 basis points.

While the majority of changes to fixed rates in the last two months have been hikes, RateCity advise the opposite is happening in the variable rate market.&nbsp; 
&nbsp; 
RateCity.com.au home loan database analysis shows 49 lenders have cut at least one variable rate in the past two months while 10 lenders have hiked variable rates in that time.

The vast majority of variable rate cuts are reserved for new customers, not existing ones, RateCity research director, Sally Tindall, said.

&ldquo;Variable rates are at record lows, however, most of these deals are reserved for new customers, not existing ones, unless you specifically ask,&rdquo; she said. 
&nbsp; 
&ldquo;Before you call, check what rate your bank is giving new customers for the same home loan, but also find out what other lenders have on offer.

&ldquo;If you are paying significantly more than a new customer, pick up the phone and ask your bank &lsquo;why?&rsquo;.

[smartcode_project:default project_id=7363 project_image_fid=41840] 
&nbsp; 
&ldquo;If you have a good track record of paying down your debt, and the bank thinks you might switch to a more competitive lender, they&rsquo;re likely to play ball. 
&nbsp; 
&ldquo;A lot of people think a handful of basis points won&rsquo;t make much of a difference, but if the discount is permanent, then the savings can potentially run into the thousands in just a few years,&rdquo; she said.

ME has also increased its cashback offer to $3,000 for externally-refinanced home loans.

The new lending amount must be minimum of $250,000.

Eligible refinancers must apply by Friday 27 August inclusive, and settle by Friday 29 October.

ME Bank CEO Adam Crane said the cuts would assist borrowers &quot;looking to maximise their borrowing in a challenging property market.&quot;

In February, ME Bank merged with Bank of Queensland with the deal expected to be finalised this month.

But ME Bank cut rates across a few home loans, while boosting its refinance cashback offer to $3,000

jchancellor-FAypfDUnLy

Home loan mortgage rate rises continue

While the value of new loans dipped this month, refinancing has skyrocketed to an all-time high in June.

Latest figures from the ABS show the total value of refinanced loans hit $16.24 billion in June, up $1.37 billion in just one month, in seasonally adjusted terms.

That $16.24 billion figure is made up of a record&nbsp;$10.84 billion&nbsp;from owner occupier&#39;s refinancing, up 112% on a year ago, and&nbsp;$5.41 billion from investors, up 67% year on year.

[smartcode_project:default project_id=26734 project_image_fid=153694]

Refinancing has risen sharply in recent months, fuelled by record low rates. COVID has also prompted many families overhaul their finances.

In the past 12 months, $151.12 billion worth of mortgages have been refinanced, in seasonally adjusted terms.

RateCity.com.au research director, Sally Tindall, said the record high in refinancing in June suggested mortgage holders were racing to lock in low rates in case they rise.

&ldquo;At the start of COVID, we saw a spike in refinancing as people rushed to lock in a competitive rate. COVID was a wake-up call for people to get their finances in order, and banks were at the ready, handing out some of the lowest rates in history,&rdquo; she said.

&ldquo;Over a year later and we&rsquo;ve now hit a new record high, although this time, the surge is more likely to be fuelled by a fear of missing out.&quot;

&ldquo;In the last five months, dozens of lenders, including the big four banks, have hiked many of their longer-term fixed rates. Taking these record-low fixed rates off the table has been the push some people needed to refinance,&quot; she added.

The latest figures from the ABS show the total value of refinanced loans hit $16.24 billion in June, a new record high

jordan_55689

Mortgage refinancing is hitting record highs: RateCity

Home loan credit issues were the second most complained about matter in complaints lodged with the Australian Financial Complaints Authority (AFCA) in the past 12 months.&nbsp;

AFCA receives 70,000 financial complaints in 2020-21 with 9 percent (6300) on home loan credit matters.

Home loan issues stood at 13 percent of complaints in the prior financial year.

Overall complaints were down 12 per cent on 2019-20.

The most complained about money product was credit cards.

[smartcode_project:default project_id=3459 project_image_fid=147572]

AFCA reviews consumer disputes with banks, insurers, super funds, investment firms and financial advisers.&nbsp;

It secured more than $240 million in compensation and refunds after consumers sought AFCA&rsquo;s help, as well as outcomes such as fee waivers, debt forgiveness and apologies.&nbsp;

AFCA has now helped to secure more than $610 million in compensation and refunds, and over $220 million in remediation payments, since starting operation on 1 November 2018.&nbsp;

Individual consumers and small businesses can also access the free ombudsman service.&nbsp;

A preliminary data snapshot as of June 30 also shows that nearly 70 per cent of the 70,000 cases were resolved by agreement after AFCA brought the parties together, and that nearly 60 per cent of cases were resolved within 60 days.&nbsp;

The most complained about product in 2020-21 was credit cards, accounting for 14 per cent of all complaints, followed by home loans (9 per cent) and personal transaction accounts (8 per cent).&nbsp;

[smartcode_project:default project_id=3459 project_image_fid=147571]

Home building insurance complaints rank among the top concerns.&nbsp;

With credit cards, the most common issues were default listings and unauthorised transactions &ndash; the latter accounting for 11 per cent of card complaints.&nbsp;

Government support, business relief measures and a steadying economy had a positive effect on complaint levels in 2020-21, including complaints involving financial difficulty, AFCA&rsquo;s Chief Ombudsman, David Locke said.&nbsp;

&ldquo;Significantly, complaints involving financial difficulty were down nearly 40 per cent from the numbers we saw the previous year,&rdquo; Mr Locke said. &ldquo;That&rsquo;s a great outcome and reflects the positive response from government and industry to the impact of COVID.&nbsp;

[smartcode_project:default project_id=5490 project_image_fid=78492]

&ldquo;However, it&rsquo;s too early to say we&rsquo;re out of the woods yet. It may be some months before we know the full impact of the end of government emergency support and assistance from financial firms such as deferred loan repayments.&quot;

Overall, complaints were down 12 per cent on 2019-20.

The Australian Financial Complaints Authority (AFCA) is a non-government ombudsman service providing free, fair and independent help with financial disputes. 
&nbsp;

The Australian Financial Complaints Authority (AFCA) is a non-government ombudsman service providing free, fair and independent help with financial disputes.

Home loan complaints made to AFCA dip

First home lending by the National Australia Bank has hit a record high.

&quot;Low interest rates, government incentives and greater working flexibility continue to allow first home buyers to get into their first place with April the strongest month in a generation,&quot; NAB executive for home ownership Andy Kerr said.

Its first four months 2021 saw its lending to first timers surge 67 per cent on 2020.

[smartcode_project:default project_id=3494 project_image_fid=89056]

Its lending was up 9 per cent on the final four months of 2020, with activity is returning to inner city apartments.

Outer metropolitan buying remained strong.

Kerr said buyers are back in Victoria

&quot;It&#39;s a bounce-back story for Victoria in 2021,&quot; Kerr told Nine News.

Mount Waverley saw the biggest jump in demand from first home buyers, up 180 per cent, compared with the same period last year.

Richmond, Croydon and Berwick all rose more than 140 per cent.

Buying at Wollert, Glen Waverley, St Albans and Glenroy rose by between 45 percent and 59 percent.

[smartcode_project:default project_id=3298]

Kerr said the level of first-home buyer activity was unusually high.

&ldquo;The level of first-home buyer activity has been like nothing we&rsquo;ve seen in a generation,&rdquo; he said.

&ldquo;Record low interest rates and government incentives continue to support demand and it&rsquo;s been great to hear stories of some customers purchasing their first home earlier than expected.&rdquo;

He advised buyer enthusiasm for regional properties has slowed since last year as lending for regional properties eased off by about 4 per cent.

The NAB executive for home ownership Andy Kerr said the level of first-home buyer activity was unusually high

jchancellor

NAB first home lending hits record high as inner city apartment buying picks up

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Philip Lowe, the RBA Governor, has indicated the central bank's primary concern is employment, and those who don’t have a job and whose wages aren’t growing at sufficiently high rates. 

"So to the extent that anything keeps me awake at night, that’s what worries me is the social and economic cost from a protracted period of unemployment. 

"We know that low interest rates do push up asset prices, that’s part of the transmission mechanism. 

"What would concern me, if we saw on the back of these rising asset prices, lending standards deteriorate and people go into the bank and borrowing ridiculous amounts of money in a speculative boom. 

[smartcode_project:default project_id=29660]

"So this is why our focus is very much on making sure these lending standards remain sound because that would be a big problem if we saw a debt financed speculative boom in asset prices. 

"We are not seeing that at the moment. 

"The equity market is below its previous peaks, housing prices in Sydney and Melbourne, while they’re rising, they’re not really higher than they got to a little while back in some of the smaller capital cities. 

[smartcode_project:default project_id=4939]

"In regional Australia housing prices are rising quickly, but there are fundamental factors at work here. 

"So the issue is if prices are rising, are people borrowing responsibly and carefully? 

"And to date they are," Philip Lowe concluded.

Lowe also warned that looser lending standards would increase the upward pressure on house prices and create financial risks.

“We are not at this point, but we are watching carefully,” he said.
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The RBA Governor Philip Lowe has said he would be worried if Australians started “borrowing ridiculous amounts of money” in a speculative way.



Don't borrow ridiculous amounts of money: RBA Governor's warning to home buyers

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EXPERT INSIGHT

Australian capital city average dwelling prices rose 2% in February according to CoreLogic and are up 2.6% on a year ago. This is their fastest monthly gain since 2003 and they have now surpassed their September 2017 record high by 0.7%.

Sydney dwelling prices rose a very strong 2.5%, resulting in five months of gains, and are up 2.8% on a year ago. Melbourne prices also rose 2.1%, resulting in four months of gains, but are down -1.3% on a year ago reflecting a -5.6% fall around mid-2020 through the various lockdowns.

Prices in other cities were all up strongly led by Hobart with prices up 2.5% in February and 8.7% through the year, followed by Canberra up 1.9%, Brisbane and Perth both up 1.5%, Adelaide up 0.8% and Darwin up 0.7%. Prices in Hobart, Canberra, Brisbane and Adelaide are all at record highs.

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Regional dwelling prices rose 2.1% in February and 9.4% on a year ago with their relative strength reflecting lower levels of indebtedness and hence less vulnerability to the financial stresses caused by the pandemic driven economic downturn, less exposure to the slump in immigration and increased buyer interest as people seek to relocate from cities as part of a secular trend towards working from home and a greater focus on lifestyle.

Capital city house prices rose 2.3% in February and 3.6% over the last 12 months whereas unit prices lagged with a 1.1% gain in the month and a -0.1% fall on a year ago, with the relative underperformance likely reflecting an ongoing shift in lifestyle preferences towards houses as a result of more working from home and a lifestyle choice and as weak rental conditions made worse by the slump in immigration constrain the inner city unit markets in Sydney and Melbourne. Over the last 12 months unit rents fell -8.0% in Melbourne and -5.3% in Sydney, although there were further signs of stabilisation in February.

The strength in home prices is consistent with the surge in new housing finance commitments over recent months. This rose another 10.5% in January and is now up 44.3% from a year ago. First home buyer finance surged 10.1%mom - and is up a whopping 73% on a year ago - to a new record high although with owner occupier ex first home buyer finance up an even stronger 11.3%, the first home buyer share of new loans slipped from a record 25% to 24.9%. Investor finance is now also surging and rose 9.4%. The ongoing strength in finance commitments points to more solid house price gains in the months ahead although January’s 2% capital city rise may be hard to beat.

Auction clearances are now very strong and sales are running around pre coronavirus levels, although listings are still relatively low. Clearance rates are at levels consistent with 15% or so annual price gains!

What’s driving the surge in home prices?

The combination of reopening unleashing pent up demand, government incentives, the removal of responsible lending obligations, record low mortgage rates, the desire to "escape from the city" and relatively low property listings are all helping to push prices higher with an element of FOMO (or the “fear of missing out” creeping in too. This is after bank payment holidays and Government income support measures averted a sharp fall in prices that would otherwise have followed from the pandemic recession. The combination has more than offset the impact of weak inner city rental markets and the hit to immigration and has brought forward demand from first home buyers and owner occupiers, with investors now starting to jump in too.

Average capital city dwelling prices have now surpassed their September 2017 high, although this masks a wide divergence with: clear record highs in Brisbane, Adelaide, Hobart and Canberra and in average regional home prices; Sydney and Melbourne still down just over 1% from their 2017 highs; and Perth and Darwin remaining well down on their 2014 highs.  

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Outlook

Australian home prices are likely to rise another 5% to 10% this year and next being boosted by record low mortgage rates, government home buyer incentives and the recovery in the jobs market but the stop to immigration and weak rental markets will likely constrain price gains in inner city areas and units in Melbourne and Sydney. Outer suburbs, houses, smaller cities and regional areas will see relatively stronger gains in 2021.

The phasing down of government incentives and exhaustion of first home buyers will likely see first home buyer demand as a share of housing finance and overall demand peak in the months ahead but they will likely be replaced by rebounding investor demand. Possible increases in 4 year plus fixed rate mortgage rates flowing from the recent surge in bond yields will act as a bit of a dampener but likely only enough to see price growth settle around a 5-10% annual pace.

Shane Oliver is the Head of Investment Strategy and Chief Economist at AMP Capital 
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The strength in home prices is consistent with the surge in new housing finance commitments over recent months

soliver

Housing finance commitments surged another 10.5% to start 2021: Shane Oliver

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Heritage Bank will offer variable rate home loan rates from as low as 2.54% after announcing cuts to its rates last week.

Heritage has reduced selected rates for new loans across its owner occupier and investment range from making it more attractive for prospective borrowers to take out a loan with Australia’s largest customer-owned bank.

Heritage has dropped its Discount Variable home loan interest rate to 2.54%, for eligible borrowers taking out a new owner occupier loan of $150,000 - $699,999 with a loan to value ratio equal to or less than 70%. 
  
Other rate reductions for new owner occupier loans include:

<ul>
<li>Selected Discount Variable loans reduced by 0.09%</li>
	<li>Selected Home Advantage Variable loans decreased by up to 0.19%</li>
</ul>
There is also news for investors with further rate cuts for new loans as follows:

<ul>
<li> Investor Discount Variable loan rates reduced by up to 0.14%</li>
	<li> Investor Home Advantage Variable loan rates cut by 0.14% - 0.24%</li>
</ul>
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Heritage has dropped its discount variable home loan interest rate to 2.54%

Heritage Bank cuts variable home loan interest rates

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Home loan deferrals secured early during the pandemic continued to decline in November.

They are now down to 2.8 per cent of home loans and 2.3 per cent of all loans, according to the latest APRA data..

The share of loans deferred has fallen from above 10 per cent at the May 2020 peak. 

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Source: APRA

While Victoria retained by far the highest share at nearly four per cent, following the state's lockdown, there was also a sharp decline among Victorian borrowers. 

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Source: APRA

Property commentator Pete Wargent expects deferrals will be back into the normal range by the end of March, “assuming lockdown measures don't encroach again.”

Tim Lawless at CoreLogic noted “the significant reduction in deferred loans implies the risk of a surge in distressed properties coming on the market has reduced substantially.” 
“However there are likely to be some key precincts where distressed property sales will be more common, such as inner city high rise apartment markets where vacancy rates have risen substantially and rents have reduced,” Lawless said.

APRA calculated as at 30 November, according to data submitted by ADIs with over $20 million in loans subject to repayment deferral, a total of $60 billion worth of loans are on temporary repayment deferrals, which is around 2.3 per cent of total loans outstanding. 

Exits from deferral continued to outweigh new entries for the fifth straight month in November, with $32 billion in loans expiring or exiting deferral and $7 billion entering or being extended. 

Victoria remains the state with the highest proportion of loans subject to deferral amongst the states and territories, with 3.2 per cent of loans deferred compared with the rest of the country at 1.7 per cent. 

 
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The share of loans deferred has fallen from above 10 per cent at the May 2020 peak

Home loan deferrals continue to decline from May peak

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Hi Margaret,
My wife and I are considering building a duplex on the Sydney residential block where we currently live in our principal place of residence. The loan on the home is in my wife's name only and the balance of the mortgage is held in cash in the offset facility.
Our plan is to borrow to build the duplex, live in one and use the rental income from the other to pay down the loan and keep them both. We would both like to be signatories on the new loan. From a gearing perspective my wife is most likely to be the highest salary earner over the life of the loan.
My question then is what would be the best way to refinance/restructure the loan to minimise our tax liabilities? Alternatively, who would be the best person to approach for advice on this matter? Our accountant? Taxation specialist? Mortgage broker?
Margaret Lomas' answer is on the next page. Please click below.
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You will need to check with your accountant for your own individual circumstances, but I would suggest that he or she will most likely advise you that, for tax purposes, the land owner ( your wife) is treated as the recipient of all income / deductions including interest.
You have not specified if she is the only one of the two of you on the certificate of title - if so then only your wife gets the deductions. If you are both on title, but the loan is only in your wife's name, you need to check on her deductibility status, as I would suggest that the entire loan may not be deductible if only half the property is hers.
The name on any loans is irrelevant - except in regards to providing the security for the debt - as it is treated for tax as "on lent". I always tell people to be very careful when they structure their loans as the bank may not be giving the correct advice, or any advice at all in regards to structure. 
The bank will notoriously protect themselves by seeking commitment from both parties (where there is more than one) even where both parties may not be on the title, and this can really play around with your ultimate deductibility. 
I would have to say that when a new client comes to my company, Destiny, eight times out of 10 they have the wrong structure in place.  At times this can be fixed, but at others it cannot, and the best we can do is ensure that going forward, all is correct!
With regard to the new loan for the duplex, you must have your accountant correctly establish the relationship between the current debt in your wife's name and the present property, which is your Principal Place of Residence (PPOR). This is because the portion of the end debt which relates to the PPOR will not carry any deductions, while any portion of the debt relating to the new part of the build will be if it is income producing.
In relation to obtaining that new debt for the build, I am not sure why, if your wife will be the higher income earner, you wish to have this new loan in both names.
The highest income earner brings the highest deductions, and therefore the property and loan is best placed in that person's name, as long as you expect this situation to continue. In any event, even if you do use both names on any new debt, this won't change the fact that the title is in her name and so the deductions are hers.
You can only change this if, prior to undertaking the project, you essentially buy half of the property off your wife. You will pay stamp duty on half of the market value of the whole property, even if she sells it to you for a nominal amount.
I am not sure where you live, but in some states (such as Victoria) you can make a transfer of title by way of 'love and affection' and avoid this stamp duty - so check with the office of state revenue in your state.
When you do rent out the new property, be careful how you manage the rental income to pay off your personal debt.  he tax office does not like you to capitalise interest on an investment debt, and it will be critical for you to get proper tax advice appropriate to your personal circumstances before undertaking any rapid mortgage reduction strategy.
At the end of the day, always check with your accountant before making any move at all. 
Well-meaning mortgage brokers and banks are not usually able to provide you with the right kind of guidance in this very complex area. 
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mlomas-KC9MUPZ6Ca

Ask Margaret: How can I restructure my loan to minimise my tax liabilities?

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Finance has always been a key of the housing market, and as we have seen over the past few years, low interest rates have helped drive record demand and activity.
While this is not the most glamorous or interesting topic, finance is still a dominant part of the market.
Just a few years ago the suggestion that we might see 3+% for some of our home loan rates may have been unlikely, still today it’s a reality. (There are advertised rates of between 3.69% and 3.89% available for terms of 1-3 years.)
We are now seeing finance again in the main spotlight and there’s a lot going on that buyers need to be aware of and all the constant news about rates may be creating some confusion. As a result buyers entering the market could well be facing a dilemma, because on the one hand we still have record low interest rates, but we are also seeing the major banks move in one direction while smaller lenders move in exactly the opposite direction.
We also have APRA taking a hardline with the banks, while the RBA considers its next interest rate move and all of this commotion will possibly affect anyone looking for a loan, and that includes investors, SMSF and all owner-occupiers including first time buyers. Concerns being expressed by APRA might be unsettling or even seen as a negative, and so possibly causes buyers to be more cautious.
Against this background a number of Colliers International’s clients have recently introduced a special deposit offer based around a select number of projects with those clients accepting a 5% deposit, rather than the usual 10%.
The projects covered by this offer are Bay Pavillions – Lane Cove, Imperial – Hurstville, Atmosphere – Castle Hill, Altitude – Blacktown, The Chelsea – Kensington and 88 Alfred Street – Milsons Point. The offer has been well received in particular among buyers trading an existing property, where the costs of a move do mount up.
It’s not always possible to find $200,000- $250,000 as a cash deposit on a $2m plus apartment, and so the ability to exchange contracts on a 5% deposit has proved a popular idea, and similar offers are set to become more common.
Small Lenders Cut Rates
While the big four banks have recently increased their home-loan rates, ten smaller lenders last week cut some of their rates.
The cuts are for 1-3 year fixed mortgages rates, with cuts up to 74 basis points. This means that the gap between the highest standard variable rate and lowest 1-year fixed term is 260 basis points. It’s easy to appreciate why this is important when securing a $1 million mortgage.
It’s reasonable to expect that these cuts might spread as competition between lenders increases and institutions look to keep their customers and attract new ones. This competition usually involves a basket of products such as insurance, but is good news for buyers.
Still it does cause some head scratching as buyers weigh up the loans on offer and if the market slows other non-lender incentives may start to emerge.
The cuts by the smaller lenders are also a bet that they expect the Reserve Bank of Australia will make more rate cuts, or at least hold steady. Still while the prospect of an official interest rise looks very remote for some time, further cuts are not assured, because we may well be at the low point of the rates cycle. It remains common sense however that anyone looking for finance should do a lot of research and shop around for the best rate and terms.
Big Banks In Step With Rate Increases
The big four banks have all increased mortgage rates while the Reserve Bank of Australia is still expected to cut the cash rate, although this may roll over until 2016. And so where do the different banks now stand with their home loan rates?
ANZ Banking Group has raised interest rates by 0.18% points, its standard variable rate for owner-occupiers is now 5.56%, and for property investors 5.83%.
Westpac has increased its variable rate by 0.2% points. Commonwealth Bank has made a 0.15% point increase and National Australia Bank a 0.17% point increase.
These increases, although very modest, appear to have had the immediate effect on borrowers making them think twice about locking-in interest rates. The reason is that with rates so low on a pro-rata basis a further cut or increase of say 25 base points would be either a blow or a bonus for anyone on a variable rate.
One side result of all this jumping about with rates is that all lenders are also promoting incentives aimed at getting customers to switch between lenders with various cash and rebate incentives on offer. Borrowers can of course have a bet each way and combine fixed and variable rate, and this does appear to be a trend.
SMSF and Investors Face Controls
Tied up in this interest rate mix APRA has instructed the banks to reduce their lending to investors and SMSFs.
This move has had an immediate impact on demand from these two groups, and in part also introduced the requirement for bigger deposits. This tightening of lending restrictions has also seen some of the banks pulling out of this sector.
These changes come at a time when according to the ATO over the past two years there has been a more than five-fold increase in SMSF debt to about $15.6 billion.
The SMSF sector is larger and is estimated to have total assets of $562 billion currently under management and so changes among this group has the potential to impact demand for investment properties.
APRA Keeping Watch
All four banks have each blamed the recent home loan increases outlined on APRA’s requirement for them to hold more capital to cover each bank’s mortgage loan books, which now form a big chunk of their loans, with the extra funds earmarked as a potential buffer against any future financial shocks.
Still it’s the customer facing higher charges and in the housing market that always appears to be the case, as is demonstrated time and again with stamp duty.
APRA’s sharper surveillance of bank lending follows many years when the RBA had ascribed a positive view of the conservatism of Australia’s big banks, that view may have been relevant at the time, but now with so much exposure to the housing market possibly not now.
The tightening of bank lending standards since the global financial crisis has improved the underlying muscle of their loan books. This is an important result if adverse economic circumstances were to creep upon us again.
However a tighter rein on lending and a competitive interest rate outlook looks set to deflate any prospect of a housing bubble, which as demand softens now appears improbable, and that has to be seen as a positive.
 
Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.
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