Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

<section data-scroll-anchor="false" data-testid="conversation-turn-6" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-2" dir="auto">
<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" data-turn-id-container="request-WEB:5a5ab36c-8dd3-454c-b456-c501f22f0eb4-0" dir="auto">
The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
</section>
</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Home Loans

<html><body>
Online lender <a href="http://loans.com.au/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=http://loans.com.au&amp;source=gmail&amp;ust=1518571026670000&amp;usg=AFQjCNEDFZS7g-pwfjSJyfsyomnKSrxPtw">loans.com.au</a> has cuts home loan interest rates for homebuyers to just 3.52 percent.
Its managing director Marie Mortimer said the decisive 12 basis point cut would force the banks to lower their rates or continue losing market share to <a href="http://loans.com.au/" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=http://loans.com.au&amp;source=gmail&amp;ust=1518571026670000&amp;usg=AFQjCNEDFZS7g-pwfjSJyfsyomnKSrxPtw">loans.com.au</a>.
“We have grown from nothing in 2011 to almost $6 billion in loans under management today by consistently offering the lowest interest rates to Australian borrowers,” Ms Mortimer said. 
For owner occupier borrowers who are purchasing or refinancing, the site has dropped the rate on its streamlined Essentials product to just 3.52 per cent, and its Offset product to 3.60 per cent.
For investors, the innovative Smart Loan Package starts at 3.89 percent.
Mortimer said the new rates would help the site in its mission to rapidly drive online lending from five to 25 per cent of the Australian lending market.
Parent company Firstmac has surged to become the 14th largest residential mortgage lender in Australia, ahead of household names including Citbank, Heritage Bank, and Newcastle Permanent.
It is also Australa’s largest non-bank lender with aspirations to become an ADI.  
 
</body></html>

j.ballantyne1990-6AQqhLzZaK

Online lender loans.com.au cuts rates for investors and home buyers

<html><body>
The online mortgage broker Lendi has completed its latest round of capital raising. 
The AFR's Street Talk column wrote Lendi recently ruled off a $25 million capital raise.
It was oversubscribed with support from some existing shareholders, sophisticated investors and a number of blue-chip Australian institutions.
The company is seeking to take more than its current one per cent last year of the market. 
<div class="cq-article-content-paras section">
Lendi is 40 per cent owned by founders and employees, having been founded by David Hyman, Sebastian Watkins, Martin Lam and Mark Kalajzich.
<div class="cq-article-content-paras section">
Its shareholders include Bailador and Macquarie Group.
The company initially raised $3.1 million from high net worth investors to scale the business nationally.
In 2014 its secured a further $6 million.
It now has 200 team members across four offices.
</div>
</div>
</body></html>

Lendi complete another round of capital raising 

<html><body><div class="cq-article-content-paras section">
Liar loan applications constituted alarmingly high volume in the second half of 2017 loan application, according to analysis of by the online property lender Tic:Toc Home Loans.
Analysis of the applications revealed about 20 per cent overstated their income, typically by around 30 per cent.
<div class="cq-article-content-paras section">
Some 50 per cent of applications indicated their expenses were lower than the commonly accepted University of Melbourne Household Expenditure Measure, also by around 30 per cent.
The data was based on applications received since last July.
<div>
Salaries are often overstated by borrowers using a range of tactics, such as over-stating bonuses or, for variable income earners, using peak rather than average income.
The issue of exaggerating income and understating their spending comes despite the Australian Prudential Regulation Authority crack down on lenders' assessment of borrowers' genuine capacity to repay debt. 
</div>
<div>
Tic:Toc uses Yodlee, a sophisticated, high tech gatekeeper that digitally validates borrowing power, credit checks, personal ID and all other financials.
Anthony Baum, founder and chief executive, said the loan applications are generally representative of larger lenders in terms of location, borrower and loan size.
Baum told Fairfax Media in many cases applicants did not have to over-state their income for the required loan.
It targets buyers that have 20 per cent deposits with highly competitive rates and no lending fees. 
Its loans range from about $60,000 to $1.3 million.
The latest analysis was based on a smaller sample than UBS's survey which highlighted concerns last September. The UBS survey of over 900 mortgage applications originated over the last 12 months revealed that about one third of home loans contained information that was not accurate.
Martin North, principal of Digital Finance Analytics, an independent consultancy, recently noted standards had slipped because of lenders' readiness to "jump over backwards" to increase business.
North added the government's widely used 'Household Expenditure Measure', which uses family size, location and lifestyle to estimate living expenses, was "very low", particularly for high costs cities like Sydney and Melbourne.
</div>
<div class="cq-article-content-paras section">
Wayne Byers, the APRA chairman, has requested lenders collect more realistic living expenses from borrowers.
UBS estimated $500 billion of home loans were "liar loans", the researchers, Jonathan Mott, Rachel Bentzvelen and George Tharenou wrote.
 
</div>
</div>
</div></body></html>

jchancellor-FAypfDUnLy

Liar loan applications needlessly continue amid APRA crackdown

<html><body>
<div>Personal credit growth was negative again in November 2017, as it was in October 2017, and on an annual basis it has been negative since 2015 as Aussies elect to cut up their credit cards (or at least, apply for fewer cards and personal loans). Housing credit continues to swing across from investors to owner-occupiers - in part due to loan switching - but in aggregate the annual rate of growth at 6.4 per cent remains higher than a year earlier when it was 6.3 per cent. </div>
 
<div class="separator"><img src="https://1.bp.blogspot.com/-0yCCn4mLAfY/WkdoqRqLgVI/AAAAAAAAnus/pa_QXMs6Mc0Doek8mBChxLX3KX27AzleQCLcBGAs/s640/RBA1.jpg" width="640" height="378" data-original-height="803" data-original-width="1354"></div>
 Annual credit growth was steady year-on-year at 5.4 per cent. 
<div class="separator"><img src="https://4.bp.blogspot.com/-ljdXLu8nUFQ/WkdorDaKAvI/AAAAAAAAnu0/4IleZattKeA89bssvZ6Yp07INR016KMHwCLcBGAs/s640/RBA2.jpg" width="640" height="376" data-original-height="803" data-original-width="1365"></div>
<div> </div>
<div>Cross-checking to APRA's monthly figures we can see that ADIs grew their investment loan exposures at just 2.8 per cent, miles below the arbitrary 10 per cent speed limit, so there is plenty of potential capacity for investment loans to pick up again in 2018. </div>
 
<div class="separator"><img src="https://2.bp.blogspot.com/-q_3V-T87s3I/Wkdoqtj6aSI/AAAAAAAAnuw/BV3AtDI3h-w22j7p8K64BFth2AOnLL7uwCLcBGAs/s640/APRA.jpg" width="640" height="372" data-original-height="797" data-original-width="1370"></div>
<div>
 On the other hand, APRA's figures showed that monthly owner-occupier credit grew by an up-tempo 0.56 per cent to $1.04 trillion, suggesting that non-banks have picked up the slack created by tighter lending standards. 
</div>
<div>Low mortgage stress</div>
<div> </div>
<div>The unemployment rate continued to trend lower in 2017, now down to its lowest level in 4½ years with further declines to come in 2018, and S&amp;P has its 30-day prime mortgage arrears at the lowest level we've seen. Arrears may or may not pick up a bit in 2018, but they are presently tracking at such a remarkably low level it could hardly be a surprise if they did. 
</div>
 
<div class="separator"><img src="https://4.bp.blogspot.com/-2yg8nUBdByQ/WkdopQzcUuI/AAAAAAAAnuo/5fduST_I4iEZnj-8g1srhqzQhTmDp1mXgCLcBGAs/s640/Arrears.jpg" width="640" height="380" data-original-height="800" data-original-width="1344"></div>
<div> </div>
<div>The Reserve Bank's figures suggest that the ratio of household debt to disposable income will likely tick past 200 per cent in 2018, but serviceability remains very comfortable for most households, with the cost of living indexes very benign and household income growth passed its nadir.</div>
<div> </div>
<div>It was interesting to see that the Bank for International Settlements (BIS) incorporated the two uppermost points I raised at the UBS Conference panel debate, namely on Australia's household debt distribution by quintile and the tremendous growth of mortgage offsets (see borrowers and buffers) in its latest paper on household debt (though it appears to have given the buffers point relatively short shrift!). The fact is, though, that mortgages are easier to service than they used to be, and overall households are managing pretty well, while the outlook is improving nicely in the resources states. Roll on 2018 and the 'surprisingly resilient' articles...</div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
</body></html>

pwargent-M4siyDbqQY

Non-banks pick up slack for investment loans: Pete Wargent

<html><body>
GUEST OBSERVER
How truthful are we when it comes to negotiating loans in Australia?
With increasing pressure on the housing market, some of us might be tempted to stretch the truth to secure a mortgage on our dream property - but research shows that this practice can have serious repercussions.
Recent news reports have alerted borrowers to the dangers of “liar loans”, based on the findings of a new UBS research study. A liar loan is a no-documentation loan that is approved on the basis of unverified and possibly false information about income, assets or capacity to repay.
In the United States, where many loan applications have been approved without any information on the borrower’s income and assets - these liar loans have been implicated as one of the reasons for the global financial crisis.
Should we be worried in Australia?
The UBS study found that a third of Australian mortgage borrowers reported being “not factual or accurate” in their mortgage applications. Being “not accurate” is not the same thing as being a “liar”. However, we need to be aware and pro-active to avoid poor standards and practices.
They further estimate that there is roughly US$500 billion (A$657.95 billion) worth of factually inaccurate mortgages on banks’ books in Australia. This is worrying, because it could mean that borrowers are taking on bigger debts than they can actually afford, falling into financial stress or even losing their homes.
The Australian situation
In Australia, when borrowers apply for a mortgage they need to provide documentation that verifies their employment history, creditworthiness, and overall financial situation. Borrowers are required to provide a payslip or most recent tax returns, and show that they have been employed in the same job for at least 12 months.
Other documentation may include: credit card and bank statements; sales contract; confirmation of rental income if purchasing an investment property; and more. The mortgage originator may perform credit checks and bankruptcy or default searches.
Some mortgage borrowers may not be required to provide much documentation if they are existing clients of the bank and already have a strong credit history.
In my research I found that 88.8% of mortgage applicants were existing customers of the bank where they apply for a mortgage, and had been so for 9.3 years on average. But low documentation loans exist for self-employed borrowers.
Where accuracy of mortgage applications becomes difficult to determine is when estimating the expenses of the household. Mortgage applicants are asked about their monthly expenses to assess whether they can service the debt without major stress. Here, applicants may be “mostly factual and accurate” or even “partially accurate” when trying to calculate their monthly expenses. After all, how many people actually keep accurate and up-to-date spreadsheets of all their expenses?
Debts outstanding with other financial institutions or family and friends may also be misreported. In addition, mortgage lenders who receive commissions linked to loan size have incentives to overestimate borrower’s incomes and underestimate expenses.
Australian version of liar loans?
These arguments do not suggest that there is no “lying” or “truth hiding” in mortgage applications in Australia, but that it may not be comparable to the trend of “liar loans” seen in the US.
More importantly, banks do not rely only on their clients’ word. Banks estimate monthly expenses and uncommitted income for their clients based on borrower characteristics and solid financial records.
Data from previous research reveals that banks estimate on average A$1,637 more on monthly expenses than applicants report. Based on the bank’s calculations, housing investors underestimate their monthly expenses by A$1,932 on average, while owner-occupiers underestimate by A$1,560 on average.
Similarly, mortgage applicants report their monthly uncommitted income to be on average A$702.5 more than what the bank estimates it to be. Housing investors only overestimate their monthly uncommitted income by A$174 on average, while owner-occupiers overestimate by A$840 on average.
Due diligence required from both banks and borrowers
Research finds that mortgage features (for example fixed or adjustable rates, maturity, loan-to-value ratio, and so on) help borrowers select mortgage products that are affordable and safer for them, with the guidance of mortgage lenders and brokers.
The research further finds that lenders should make sure that borrowers have the financial capacity to repay their loans out of income or by selling assets under plausible conditions, and not by relying on the value of the collateral.
Mortgage delinquency and default may rise due to excessive risk taking in mortgage lending combined with deteriorating economic conditions; or due to falling income and rising unemployment during a housing downturn. This later case is more likely the potential threat in the Australian current environment.
The Australian Prudential Regulatory Authority (APRA) and the Reserve Bank of Australia (RBA) perform stress tests to check the financial system’s resilience. Along with APRA’s macro- and micro-prudential regulations, some lenders are introducing higher requirements and credit restrictions on potential borrowers.
These include obtaining more information on the clients, which helps assess credit and default risks and helps design and target financial products to specific type of borrowers. There is however risk of mortgage discrimination.
More careful monitoring needed
Mortgage risks often relate to mismatches between the products used by households and their financial capabilities and ability to bear risks. For that reason, mortgage product characteristics should be monitored carefully both by banks and borrowers.
The Organisation for Economic Co-operation and Development (OECD) suggests that financial authorities should make sure lending standards are sound, both in the banking and non-banking sectors. It is important that banks do not face incentives encouraging excessive risk taking.
<img src="https://counter.theconversation.com/content/87073/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Requiring more transparency, reinforcing consumer protection and financial education encourages sound lending and borrowing practices.
Maria Yanotti, Lecturer of Economics and Finance Tasmanian School of Business &amp; Economics, University of Tasmania.
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/how-liar-loans-undermine-sound-lending-practices-87073" target="_blank">original article</a>.
</body></html>

How 'liar loans' undermine sound lending practices: Maria Yanotti

<html><body>
National Australia Bank (NAB) has sacked 20 bankers and disciplined another 32 for selling home loans to customers whose eligibility may have been in question.
NAB said in a media release it had “commenced a remediation program for some of its customers, after a review identified their home loan may not have been established in accordance with NAB’s policies”.
Around 2,300 home loans since 2013 have been identified as submitted without accurate customer information and/or documentation, it added.
The bank became aware of the matter in October 2015, and advised ASIC in December 2015 after an initial high-level review. 
“What occurred was unacceptable. We have investigated this matter thoroughly, and, as we have always said, whenever we find issues we will investigate them, fix them, and hold people to account – and we did,” said Andrew Hagger, NAB’s chief customer officer, Consumer Banking and Wealth.
Following the investigation, 20 bankers in New South Wales and Victoria have been sacked while another 32 bankers had “consequences applied” including pay cuts.
Many of the customers who took the loans in question are from overseas and NAB has has commenced writing to them asking them to participate in a detailed review of their loan, which may include verification of documents submitted at the time of their home loan application. 
It said affected customers may be offered compensation as appropriate.
NAB said it is working with ASIC to ensure the remediation program provides fair outcomes for customers. 
“The remediation program has been designed with reference to the methodology applied by the Financial Ombudsman Service, and with NAB’s standard approach to compensating customers. NAB will engage an independent expert to undertake regular audits of the remediation program, and will update ASIC every two months on its progress,” said the media release.
“I want to assure all of our customers that we have improved our systems, processes and programs as a result of what occurred here,” Hagger said.
The changes will apply to NAB’s Introducer Program, including enhanced governance and eligibility criteria.
</body></html>

prateek24-ezbwHMbNAk

NAB sacks 20 bankers for incorrect documentation on 2,300 loans

<html><body>
A Melbourne man, Andrew Cameron, appeared before the Melbourne Magistrates' Court today charged with one count of the common law offence of conspiracy to defraud, following an ASIC investigation. 
ASIC alleges that Mr Cameron conspired with others to defraud his employer, the Commonwealth Bank of Australia (CBA), by providing false documents and information in support of home loan applications.
The charges are linked to the hundred-million dollar loan fraud conspiracy uncovered by ASIC's investigation into Myra Home Loans.
ASIC alleges that the conspiracy involved approximately 121 loan applications and resulted in the CBA lending approximately $36,420,040.
The maximum penalty for the offence is 15 years' imprisonment.
Mr Cameron was not required to enter a plea and was bailed to appear before the Magistrates' Court at Melbourne on 2 February 2018.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
</body></html>

Myra Home Loans alleged fraud charge against Andrew Cameron

<html><body>
<div class="article_body">
The ANZ is reducing the headline rate on its Simplicity PLUS home loan for borrowers to 3.99 per cent by increasing the discount by 4 basis points to 56 basis points.
It applies to owner occupiers paying principal and interest only borrowing.
The Teachers Mutual Bank’s Classic Home Loan variable rate has been cut by 30 basis points to 3.84% for new business across its three key brands: Teachers Mutual Bank, UniBank, and Firefighters Mutual Bank.   Fixed rates across a number of home loan products have also been cut for all brands.    “We always seek to provide some of the most competitive rates on the market, and these new rates achieve that aim”, said Teachers Mutual Bank’s head of third party distribution, Mark Middleton.   These rate changes follow on from Teachers Mutual Bank Limited’s recently announced annual results, which highlighted the brand’s strong home loan performance, with first and third party lending growing by a total of 20 percent in 2016-2017.</div>
<div class="article_body">
Macquarie is launching a mortgage and credit card package linked to the variable, principal and interest rate of 3.69 per cent.
The loan offer retains features offset account, a cut in the annual package fee from $398 to $248 and a credit card rate of 5.9 per cent.
Meanwhile the Canstar weekly interest rate summary is below - the number of movements this week in home loan rates has been relatively low. There have been a small number of decreases to owner occupier principal and interest loans while this week marks another consecutive week of little movement in investment loan rates.
Principal and interest only
</div>
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoansPI.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/11/1/HomeLoansPI.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoan2.jpg" target="_blank"> Click to enlarge</a>
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoan2.jpg" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/11/1/HomeLoan2.jpg" alt=""></a>
 
Interest only 
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoan3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/11/1/HomeLoan3.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/11/1/HomeLoan4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/11/1/HomeLoan4.jpg" alt="">
 
 
</body></html>

jonathanchancellor-7SQnKwU6yx

All the latest home loan rate movements: Canstar

<html><body>
<div>
Westpac Group hopes to thwart "liar loans" by introducing stringent tests on residential property borrowers' existing and future capacity to meet repayments.
<div>
Mortgage brokers' onus of proof will be switched from establishing whether a loan is suitable for a client to making a declaration as to why it is "not unsuitable".
<div>
There are concerns lenders and brokers, paid by commission linked to the size of the loan, have overestimated borrower incomes and underestimated expenses.
</div>
<div>
<a href="https://www.afr.com/business/banking-and-finance/liar-loans-hit-500b-mortgagors-are-more-stretched-than-banks-believe-ubs-20170911-gyew5j">Investment bank UBS estimated recently there are about $500 billion</a> "liar loans", which could cause problems when rates rise from record lows.
<a href="https://www.afr.com/business/banking-and-finance/banks-face-margin-squeeze-as-borrowers-forced-out-of-interestonly-loans-20171016-gz1ury">The tough new lending changes </a>from November 14 will apply to Westpac and Bank of Melbourne, BankSA and St George Bank.
</div>
</div>
<div>
"Westpac is committed to responsible lending and meeting our conduct obligations," a bank spokesman told Fairfax Media.
<div>
"The questions are designed to help understand your client's motivations and align the product to their requirements."
</div>
<div>
"The declarations are there to prompt [a mortgage broker] to explain the implications of product choice and their features so a client can make more informed decisions."
 Clients will even be quizzed on having dependents with special needs that might require long-term spending on care and treatment.
It will apply to eight types of loans including fixed interest, interest only, loans for refinancing and debt construction and mixed purpose.
</div>
</div>
</div>
<div>Questions will cover clients' foreseeable changes, but also special circumstances, such as those approaching retirement age during the loan term.</div>
</body></html>

"Liar loan" crackdown by Westpac, St George, BankSA, BoM loan applicants

<html><body>
The number of loans to first home buyers rose strongly in August from July, helped by moves from the New South Wales and Victorian governments to encourage first home owners into the market.
The ratio of the number of first home buyer loans to the total number of owner occupier loans also increased strongly, said the latest data by the Australian Bureau of Statistics (ABS).
Other features of the ABS data were:
<ul>
<li>In trend terms, the number of commitments for owner occupied housing finance rose 1.0% in August 2017.</li>
<li>In trend terms, the number of commitments for the purchase of new dwellings rose 2.1%, the number of commitments for the construction of dwellings rose 1.5% and the number of commitments for the purchase of established dwellings rose 0.9%.</li>
<li>In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 17.2% in August 2017 from 16.6% in July 2017.</li>
</ul>
Also, the trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.6%. 
Seasonally adjusted, the total value of home finance commitments excluding alterations and additions rose 2.1%.
<a href="https://www.propertyobserver.com.au/images/2017/10/18/FHBABS1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/18/FHBABS1.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/18/FHBABS2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/18/FHBABS2.png" alt="">
ANZ Research said in a note that the though “overall demand for housing appears to still be solid, although the growth in first home buyer demand is unlikely to be sustainable given ongoing affordability issues”. 
It also said finance for the construction or purchase of new buildings continues to rise, posing some upside risk to our construction forecasts.
</body></html>

Home Loans

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Home Loans

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News