Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

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Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

Home Loans

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In the aftermath of the GFC, a focus on more financial resilience has meant that Australian banks have had to increase capital requirements by strengthening their capital position, primarily through an increase in common equity. 
This has impacted banks’ ROE, encouraging them to tweak their lending activities, according to the RBA’s latest bulletin. 
“One of the most notable ways that banks have been able to reduce their average risk weight, and the effect of higher capital on ROE, has been through a continued shift towards housing lending,” it says.
In 2016, housing credit made up nearly two-thirds of the stock of banks’ domestic credit, up from a bit above half in 2008 and well above the level from a couple of decades ago (Graph 5). 
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Graph5.png" target="_blank">Click to enlarge</a>
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According to the bulletin, this long-run trend has been underpinned by factors such as financial deregulation and competition in lending markets, a fall in inflation and an increase in the cost of housing relative to business assets over time. More recently, low interest rates have likely encouraged housing investment and demand for housing credit. 
It said that one reason banks have accommodated the strong demand for housing credit may have been that housing lending has been able to generate higher ROE than other types of lending, because the lower risk weight applied to mortgages has not been fully offset by narrower credit spreads.
Some banks have also been scaling back lending activities that are more capital intensive but do not generate sufficient returns (for the amount of capital required). 
Banks have also repriced their loans, mostly housing loans, in response to higher capital requirements.  
“Since mid 2008, the cash rate has declined by 575 basis points while housing lending rates have declined by around 390 basis points (Graph 6). While part of the widening in this spread has been due to a rise in banks’ funding costs relative to the cash rate, the implied spread between banks’ mortgage lending rates and their funding costs has still increased by around 110 basis points. 
<a href="https://www.propertyobserver.com.au/images/2017/06/19/Graph6.png" target="_blank">Click to enlarge</a>
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“Part of this increase in spreads reflects efforts by banks to offset the costs associated with using more equity to fund lending as capital requirements have increased,”  it said.
The remainder likely reflects banks’ efforts to offset the impact on their earnings from new regulations requiring them to hold a greater amount of HQLA, which typically have a yield that is less than the cost of funding (as discussed below). 
More recently, banks have increased their lending rates on investor and interest-only loans, relative to those on amortising owner-occupier loans, in response to regulatory tightening.
Stronger capital and liquidity positions improve banks’ resilience against adverse shocks. 
However, such changes can also affect their funding costs and key profitability metrics. 
These changes have included a continued shift towards housing lending, a scaling-back of capital-intensive and lower-return lending, and a repricing of loans. 
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jonathanchancellor-7SQnKwU6yx

Tighter regulation has made banks tweak lending practices, increase mortgage lending: RBA bulletin

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ANZ has announced a five basis point reduction in variable interest rates for customers paying principal and interest on home loans, effective 16 June. 
The bank’s standard variable rate for owner-occupiers is at 5.20 percent/pa.
Customers with an investor loan paying principal and interest will receive a five basis point reduction on their standard variable rates.
Variable interest-only home loan rates for investors and owner-occupiers will increase 30 basis points, which the bank says is in response to regulatory and market condition.
Fred Ohlsson, ANZ Group Executive Australia said many Australians are finding it difficult to manage household budgets at present and ANZ is pleased to be able to reduce rates for the majority of our customers who are working hard to pay off their homes.
“While we know those only paying interest on their loans will be disappointed, we need to manage our regulatory obligations and we are now required to hold additional capital against our home loans. We also need to better balance our portfolio towards those paying off their homes," he said.
“There are clear benefits for our customers to be paying off their loans and we have made this as easy as possible by removing fees associated with moving across from interest-only loans.
“Today’s decision is not in response to the recently announced bank levy and we are still to determine the final impact of the tax.
“We do however recognise the work regulators are doing to manage the growth of both investor and interest-only loans and we will continue to be transparent on the impact this will have on how we structure and price our home loan products,” he said.
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ANZ reduces rates on principal and interest home loans

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The prospect of rising interest rates has more borrowers wanting to lock into fixed-rate loans, says a new study. 
More than a third of Aussies (35.5 per cent) looking to take out a home loan would go for a fixed-rate loan, according to Gateway Credit Union. The split rate option was favoured by 34 per cent and the variable rate by 30.7 per cent. 
And over half of those surveyed said they would be in it for the long haul — choosing to fix their home loan rate for five years.
The sentiment for fixed loans is high in spite of the Reserve Bank of Australia keeping interest rates on hold and at a record low for the past several months. Banks, however, have been making out-of-cycle home loan rate increases, citing tough regulatory environment.
Of the major cities, Brisbane residents are the second most likely in the country to want to fix their mortgage after Sydneysiders, with 35.1 per cent saying they would choose a fixed rate home loan over a variable or split option, the www.realestate.com.au reported citing The Courier Mail.
The news comes after Mortgage Choice’s national home loan approval data found Queenslanders were the keenest on fixed rates, with 24.74 per cent of all March loans being locked in.
As to the preferences by age, the younger generation (18 to 29 year olds) are more inclined to take out a fixed rate home loan, followed by the 50 plus age bracket.
Gateway CEO Paul Thomas was cited in the article saying speculation around changing market conditions had rattled borrowers.
“We know property prices are sky high, compound that with low wage growth, high levels of household debt and out of cycle rate hikes and you can expect that consumers might be worried about maintaining a loan, especially if they have no control over repayments because of a fluctuating rate,” Thomas said.
“Borrowers have enjoyed low rates for quite some time but the results suggest that we may be in for tougher times ahead.”
These findings suggest borrowers think that once rates start to shift upwards they won’t be coming back down again for some time, he added.
Borrowers would do well to consider fixing part, or all, of your home loan. 
Omniwealth’s Andrew Zbik suggested borrowers take several steps, such as building a cash buffer, having an offset account and budgeting carefully.
Zbik said he suggests to clients to have at least six months of expenses put aside as a cash buffer.
“This will help to shield you from any immediate increases in interest rates and give you time to adjust any spending commitments,” he said. 
According to the RBA, only one-in-three households have enough cash on hand to meet one month’s mortgage payments.
Offset accounts are another way to put your surplus cash to work, Zbik said. Your savings and everyday cash flow will be used to reduce the repayments on your home loan. For example, if you have $100,000 of loan outstanding and you have $10,000 in the offset account, the bank will only charge you interest on the $90,000.
He also suggested disciplined budgeting using automatic budget tracking programs such as Moneysoft or MoneyBrilliant.
“Knowing where you spend your money will help you to prepare for where interest rates need to be before cashflow gets tight,” he added.
 
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More borrowers favouring fixed-rate loans

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GUEST OBSERVER
Aussies are missing out on savings of up to $3,184 a year by shunning online lenders in favour of the big banks according to financial comparison site Mozo.com.au.
A nationally representative survey conducted by Mozo found Aussies are less likely to apply for a home loan online than other financial products despite the huge savings on offer.
“Our research shows while more than half of consumers are comfortable taking out car insurance, credit cards and personal loans online, just 27 per cent would consider doing the same for a home loan,” says Mozo Director Kirsty Lamont.
“Surprisingly, less than half of consumers would consider getting a home loan with an online lender despite the majority saying the main drawcards of signing up with an online lender are cheaper interest rates and lower fees.”
Mozo compared 504 home loans from 89 providers to identify Australia’s best value home loans for its annual Mozo Experts Choice Home Loan Awards, and found that nearly two thirds of the best value home loans on the market are from online lenders.
“We found that online lenders are on average 0.70% cheaper than the Big 4 banks for a typical loan of $350,000 over 25 years. When you look at the room for savings, it’s well worth looking beyond the traditional bricks and mortar lenders.”
Mozo found the biggest barrier to Aussies getting a home loan online is their lack of familiarity with online lenders, with 56 per cent saying they simply don’t know enough about them.
“Unfamiliarity with online lenders is stopping borrowers from accessing better home loan deals,” says Lamont. “Many online lenders are able to pass on significant cost savings to consumers because they have fewer overheads than traditional banks.”
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The research shows more males than females would consider applying for a home loan online, while females were more likely not to borrow from an online lender because they didn’t know enough about them.
Of those who said they would apply for a home loan online, half are between the ages of 25 and 44, which indicates that Gen X and Y are more comfortable applying for a home loan online than other generations.
In addition to lack of familiarity, 43 per cent of consumers say they avoid shopping online for a home loan because they’d prefer to discuss their needs face to face with a mortgage expert.
“Seeking expert advice from a third party might be a valuable service in navigating the mortgage application maze but this could come at a steep price if borrowers neglect to do independent research beforehand,” says Lamont.
“Many borrowers who go through a bank or mortgage broker often don’t get to see the full spectrum of offers available and may be unsure of what rates are available elsewhere, especially in the online space.”
Online lenders iMortgage, loans.com.au and UBank were among the major winners in this year’s Mozo Experts Choice Awards, while Homestar was named the Non-Bank Home Lender of the Year after raking in mentions across five home loan categories.
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<img src="https://www.urban.com.au/images/2017/05/24/MOZO%20-3.png" width="700" height="417">
Kirsty Lamont is the director of <a href="https://mozo.com.au" target="_blank">Mozo.com.au</a>
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elalademann0606-LAMLni4EAX

Borrowers lose over $3,000 in annual savings by shunning online lenders: Kirsty Lamont

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The seasonally adjusted number of home loans ticked down moderately by 0.5 percent to 54,468 in March 2017.
However the average loan size increased solidly, so combined with a modest 0.8 percent increase in investment lending to $13 billion total housing finance increased by 0.9 percent to $32 billion in the month. 
Headlines variously and confusingly described the result as stronger, growing, dropping, and on the slide.
But at the national level at least, the trend has been pretty flat. 
<a href="https://www.propertyobserver.com.au/images/2017/05/15/A1.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/2017/05/15/A1.jpg" alt="">
APRA only announced its latest round of curbs on interest-only lending at the end of the month of March, so the true impacts thereof will only be seen in the coming months.
However, the figures do suggest that lenders were already applying the brakes to investor loans to some extent before the regulatory announcement.
The average loan size for first homebuyers increased from $308,900 in February to $316,300 in March.
Meanwhile the average loan size for non-first homebuyers lifted from $360,600 to $375,800 in the month, though remaining some way below the record highs of 2015.
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The figures for new dwelling purchases by owner-occupiers were partly revised for 2012 and 2013, giving the below chart an altogether different feel than it had previously.
Some upbeat news for the housing market is that the number of new dwelling purchases by owner-occupiers has surged to the highest level since June 2007. 
<a href="https://www.propertyobserver.com.au/images/2017/05/15/A4.jpg" target="_blank">Click to enlarge</a>
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Looking around the traps, both the number and value of home loans has continued to trend down in Western Australia. 
<a href="https://www.propertyobserver.com.au/images/2017/05/15/A2.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/2017/05/15/A2.jpg" alt="">
I'll take a look at investor loans by state on Wednesday this week.
First homebuyers flounder
The number of first homebuyer loans jumped by 20.5 percent to 7,946 in March from 6,596 in February, although this was largely a seasonal move.
The annual number of first homebuyers has trended steadily down since 2014, when the market had stabilised after the first homebuyer stimulus was withdrawn. 
<a href="https://www.propertyobserver.com.au/images/2017/05/15/A5.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/2017/05/15/A5.jpg" alt=""> 
Many prospective first homebuyers in Sydney have opted to buy investment properties instead in the face of such a challenging market, and this is reflected in the decline in activity in New South Wales. 
<a href="https://www.propertyobserver.com.au/images/2017/05/15/A6.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/2017/05/15/A6.jpg" alt="">
The annual number of first homebuyers in Western Australia has also declined by 28 percent since October 2013 despite falling prices in the state's capital city, although there was perhaps the first hint of a bounce in March. 
The wrap
Overall this was a pretty solid result for housing finance in March, but since the figures pre-date APRA's latest round of curbs it will be more important to follow what plays out in the coming months. 
Developers will be somewhat heartened to see the number of owner-occupier commitments to buy new dwellings rising close to their highest ever level in recent months. 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>.
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pwargent-M4siyDbqQY

Housing finance steady pre-APRA: Pete Wargent

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The value of all housing-related lending increased by 0.9 percent in March and annual growth lifted to 5.3 percent.
The value of housing loans to owner-occupiers (excl. refinancing) rose by 1.7 percent and annual growth stepped up to 6.4 percent. 
The value of loans to investors rose by 0.8 percent in March.
Total lending for dwelling-related construction lifted by 4.5 percent and has stabilised in trend terms over the past 4 months. 
<a href="https://www.propertyobserver.com.au/images/2017/05/15/Screen%20Shot%202017-05-16%20at%208.29.14%20AM.png" target="_blank">Click to enlarge</a>
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Overall lending conditions in the housing market remained firm in March, consistent with both strong auction clearance rates and robust dwelling price growth. Key details below: 
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Owner-Occupiers (O-Os): Lending growth to O-Os (ex-refinancing) by value 12 has risen for five of the past six months. 
The monthly growth rate averages out at a solid 1.3 percent over that period. By number, however, a 0.5 percent fall was recorded 9 following a 0.8 percent contraction in February. 
A small lift in the average loan size was posted. Surprisingly, the average loan size to O-Os has trended down since late 2016 despite dwelling prices firming. The anomaly is explained, in part, by the big influence that investors and foreign buyers have had on price growth in both Sydney and Melbourne. 
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Investors: The value of lending to investors moved a little higher in March after a solid 5.7 percent contraction in February. It looks like growth in the flow of lending to investors has eased after accelerating markedly throughout 2016 as the RBA eased policy twice. Notwithstanding, lending growth to investors was 14.2 percent higher through the year in March. 
We expect to see lending growth to this segment moderate in coming data prints as some tightening in lending conditions to investors has an impact on the flow of credit. We do note, however, that the national auction clearance rate firmed on the weekend to 76.2 percent on stronger volumes. This suggests that there is still a fair bit of positive momentum in the property market. 
<a href="https://www.propertyobserver.com.au/images/2017/05/15/Screen%20Shot%202017-05-16%20at%208.30.18%20AM.png" target="_blank">Click to enlarge</a>
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Construction: Total lending for dwelling-related construction has broadly tracked sideways over the past four months. There is still plenty of residential construction to come. Commencement and completions will remain firm throughout 2017 which will help to boost the supply of new dwellings. Lending for alterations and additions lifted in March and has been trending higher. This is consistent with other indicators that show renovation activity is lifting 
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States: The data on O-O loans by State showed that annual growth in the number of loans has tracked broadly sideways in NSW, Vic and QLD. The number of loans to O-Os in WA continues to trend lower. An update on lending to investors by State will be in Wednesday’s Lending Finance release.
First home buyers: The number of loans to first home buyers posted a big 20.5 percent lift in March. Notwithstanding, first home buyers accounted for just 13.6 percent of all O-O dwellings financed over the month which is very low by historic standards. 
Note that the March housing finance figures predate APRA’s latest round of measures to mitigate risks in the mortgage lending market (announced 31 March). 
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Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905">here</a>.
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jchancellor-FAypfDUnLy

Overall lending growth in the housing market remained firm in March: Gareth Aird

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Financial comparison site RateCity.com.au will be hosting Australia’s first industry home loan sale from Monday 8 May to 10pm Tuesday 9 May, offering refinancers exclusive deals and potential savings of up to $39,000 for customers of the big banks.
Lasting for only 40 hours, the Switch &amp; Save Sale will see eight home loan lenders come together to slash fees, offer cashbacks and cut rates.
Pre-registrations for the sale opened last week.
RateCity.com.au Money Editor Sally Tindall said there had been a huge influx of traffic to the site.
“Some of these deals could potentially sell out. 
“Our research shows that the average mortgage holder could save up to $39,000 on a 15- year loan,” she said.
“There are no up-front obligations, and customers have up to 30 days to take advantage of the discounted offer, provided they register within the initial 40-hour period,” she said.
RateCity’s Switch and Save Sale includes well-known banks such as ING Direct and HSBC, alongside competitive lenders such as Mortgage House, Reduce Home Loans, loans.com.au and IMB.
Ms Tindall said the climate was ripe for refinancing.
“With banks putting up rates out of cycle, alongside comparatively low wages growth, mortgage repayments are starting to pinch.
"Refinancing isn’t as hard as people might think,” she said.
The sale runs from 6am (AEST) Monday 8 May to 10pm (AEST) Tuesday 9 May 2017. 
For more information, <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_text&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969003" target="_blank">click here</a>.
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j.ballantyne1990-6AQqhLzZaK

RateCity home loan sale gives Australians the incentive to switch

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<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/2017/05/04/ratecity-logo.jpg" alt="" width="563" height="151">
SPONSORED POST
In this fast-changing mortgage environment, it can be hard for investors know whether to wait things out or alter their home loan now before conditions further evolve.
Many investors regularly refinance and restructure so they can unlock equity and maximise their tax position – but do old strategies still apply in this new environment?
Things became serious on 31 March, when APRA responded to the “heightened risks” in the mortgage market by tightening lending criteria.
These latest measures – which followed a first round of tightening that began in December 2014 – were “aimed at improving the quality of new mortgage lending generally and moderating the growth of investor lending in particular”.
As a result, it has become harder for investors to qualify for mortgages – particularly interest-only loans, and even more so interest-only loans with an <a href="https://www.ratecity.com.au/home-loans/lmi-calculator">LVR</a> above 90 percent.
Even before APRA’s announcement, lenders had been making life harder for investors by increasing rates and serviceability requirements.
This column won’t hand out financial advice – only a broker or planner or accountant can do that, but if anyone does want to refinance, they have now been given a opportunity that has never been seen before in Australia.
RateCity has created the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article1&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a> to allow borrowers to access market-leading rates while refinancing.
Borrowers who are with ANZ, Commonwealth Bank, NAB or Westpac could actually save up to $39,000 over 15 years by switching through the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article1&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
RateCity arrived at that figure after calculating how much borrowers would save if they switched from an average-sized mortgage from the average discounted variable rate offered by one of the big four banks to the lowest variable rate in the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article1&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
It’s impossible to say how APRA might act in the future – but the regulator made it clear back on 31 March that further changes might be on the cards.
“APRA will continue to observe conditions in the residential mortgage lending market, and may adjust the above measures, or implement additional ones, should circumstances warrant it,” it said in a <a href="https://www.apra.gov.au/MediaReleases/Pages/17_11.aspx" target="_blank">media release</a>.
As far as investors are concerned, the fast-changing mortgage environment might have some more surprises in store. 
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Is now the time to refinance your investment property? RateCity

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There are a lot of reasons why Australians don’t refinance their home loans.
Some borrowers worry that switching lenders will take too much time, or require too much effort. Many home owners also feel that the benefits of switching lenders won’t ultimately outweigh the costs involved when refinancing.
Let’s take a closer look at the cost of switching lenders, and how to determine whether refinancing a home loan will ultimately be worth it.
How much does it cost to refinance?
The costs you may encounter when refinancing can vary, depending on the lenders involved and your financial situation. These costs can include:
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<li>Discharge fees (average: $250) – when you end your current loan, you may have to pay a discharge fee to cover the lender’s admin costs. Discharge fees are different from exit fees, which were banned in July 2011, though if your home loan started before this date, they may still apply.</li>
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<li>Upfront costs (average: $400) – these include establishment fees, valuation fees and settlement costs.</li>
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<li>Break fees - if your current home loan is on a fixed rate, you could be charged expensive fees if you exit the loan early. These fees are often based on how much variable rates have dropped.</li>
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<li>Lender’s title insurance for fast track refinance ($500-$3000) – only charged if you opt for an accelerated refinance, this keeps the lender covered in case of problems during the fast-track process.</li>
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<li>Lender’s mortgage insurance or LMI (varies depending on circumstances) – only required if you’re unable to fulfil the new lender’s minimum loan-to-valuation ratio (LVR) requirements, usually 80 per cent. For example, for a $600,000 loan, you’d usually need to provide a minimum $120,000 security deposit to avoid paying LMI.</li>
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Keep in mind that you may not always need to pay every switching cost when you refinance. Some lenders may be willing to negotiate some of their fees and charges, or even waive them altogether to attract your business.
Breaking even
Once you know how much refinancing a home loan is likely to cost you in fees, charges and other expenses, it’s time to consider how long it will take before the savings from your new loan will make up for these costs.
Using RateCity’s home loan calculator, you can estimate the minimum repayments required by your new lender. By comparing these repayments to your old ones, you’ll know how much you could save on your mortgage each month, and from there how long it will take for these savings to cover your switching expenses. 
For example, if your current mortgage is $600,000 on a 5 per cent interest rate with 20 years of repayments left, your current monthly repayment would be $3960. If you refinance onto a 3.64 per cent interest rate, you could reduce your monthly repayment to $3520 – a saving of $437 per month.
Assuming a switching cost of $1000 (a discharge fee of $300, application fee of $600 and settlement fee of $100), it would take you approximately 65 days to break even.
Also, if you could afford to keep paying the original monthly repayment of $3960, you would pay off more of your loan’s principal each month, ultimately reducing your loan term to 16.9 years. This would in turn reduce the amount of interest you’d have to pay, resulting in an average monthly saving of $688. This would allow you to break even on your switching costs in as little as 45 days.
When you consider that it’s possible to save an average of $39,000 on an average Australian home loan simply by refinancing with the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article5&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">RateCity Switch &amp; Save Sale</a>, the REAL cost of refinancing could come from not switching lenders soon enough!
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The real cost of refinancing: RateCity

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<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/2017/05/04/ratecity-logo.jpg" alt="" width="679" height="182">
SPONSORED POST
Limiting yourself to the big four banks is like deciding to holiday only in your home town – you might have good experiences but you’ll miss out on so, so much.
That is not to criticise ANZ, Commonwealth Bank, NAB and Westpac, which are good banks. But they represent just a fraction of the offerings in the mortgage market. 
Statistics show the big four’s dominance: they provided 82.6 percent of all the mortgages that were sold in March, the most recent month for which statistics are available.
However, there are three good reasons why you should follow the lead of the 17.4 percent and use a non-major lender. 
1. They have cheaper rates 
Imagine you wanted to borrow $500,000 to purchase a $625,000 property. According to a recent search on <a href="https://www.ratecity.com.au/home-loans?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article4&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">RateCity</a>, non-major banks had 28 of the 30 cheapest advertised rates for owner-occupiers and 25 of the 30 cheapest rates for investors.
That’s not to say borrowers should never use the big four banks – there will definitely be occasions when one of their products is the best option. And that’s not to say borrowers should always take the lowest rate – there will definitely be occasions when a higher-rate product actually represents better value.
However, if a non-major lender has a loan that’s appropriate to the borrower’s circumstances and is also cheaper, the borrower could save tens of thousands of dollars over the life of the loan.
2. They give better service
Australians get better service from smaller lenders, according to the Roy Morgan Consumer Banking Satisfaction Report for the six months to March. The non-major banks achieved an average customer satisfaction rating of 86.1 percent, compared to 80.0 percent for the big four. The customer-owned mutual banks led the way with a rating of 91.0 percent.
There are two reasons why smaller lenders offer better service. First, they know they have no chance of beating the big boys unless they try harder. Second, they’re not massive, bureaucratic organisations, which means they can move faster and be more personalised.
3. They’re safe
Australia’s smaller banks are regulated by the Australian Prudential Regulation Authority (APRA), while non-bank lenders are regulated by the Australian Securities and Investments Commission (ASIC). Those regulators work together to safeguard Australia’s financial system and ensure lenders follow responsible lending rules. 
The other point worth mentioning is that it is the lender, not the borrower, that assumes the risk. If the hypothetical borrower mentioned above took out a $500,000 mortgage and the lender then collapsed, it would be the lender, not the borrower, that would be in trouble.
Nobody can unilaterally alter the terms of a legal mortgage contract, so the borrower’s mortgage would remain unchanged. The only difference is that the borrower would make their repayments to a different party – either a new lender (if the distressed lender found a buyer) or the liquidator (if it didn’t). So, even if the smaller lender went under, your home loan will be safe. 
Thinking of switching?
If you’re curious about refinancing with a non-major lender, RateCity has made the process easier with its <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article3&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>, which will help you refinance to a cheaper rate.
If you have a mortgage with ANZ, Commonwealth Bank, NAB or Westpac, you could save up to $39,000 over 15 years by refinancing during the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article3&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
RateCity arrived at that figure after calculating how much borrowers would save if they switched from an average-sized mortgage from the average discounted variable rate offered by one of the big four banks to the lowest variable rate in the <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_article3&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969009" target="_blank">Switch &amp; Save Sale</a>.
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