Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Home Loans

<html><body>
The ANZ boss Shayne Elliott says it's time for a rethink of APRA's 7.25% home serviceability restriction rate.
The current measure that banks apply is the benchmark mortgage rate plus 2.25 per cent, or 7.25 per cent, whichever is higher. 
The Commonwealth Bank of Australia (CBA) was the last of the big four to announce its heightened mortgage serviceability criteria in mid-2017.
But the banks are now feeling the pinch from APRAs serviceability restrictions that say borrowers must be able to handle a 7.25% repayment interest rate.
The banks are campaigning for it be relaxed as it's crimping their earnings.
"We had a floor like this before the APRA requirement, it's prudent... I'm just saying I think common sense says it should be relative to where the interest rate cycle is," Ellliott said yesterday.
“The lower interest rates get the less likely it is that rates are going to get to 7.25 per cent any time soon,” Mr Elliott said.
“At some point you need to rethink it … commonsense says it should be relative to where the interest rate cycle is.”
He also noted that ANZ went too far in scrutinising its new loans under a stricter interpretations of responsible lending standards.
It was now loosening its approach.
“This is a marathon, not a sprint,” Mr Elliott said of fine tuning the process and hiring more loan assessors. 
ANZ loan arrears rates remained at low levels with only tentative signs of stress - some 600 extra borrowers of their 1 million home loans - getting into hardship over the past year.   
 
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j.ballantyne1990-6AQqhLzZaK

Time to rethink APRA's 7.25% home loan serviceability restriction: ANZ boss 

<html><body>
An overview of ANZ's home loan portfolio from their half year results investor pack published today shows a big fall its in its investor portfolio along with a big drop in interest-only loan borrowers.
Just 18 percent of their portfolio is IO compared with 26 percent this time last year and 36 percent in 2017.
The number of investor loans has dropped over the two years from 34 percent to 31 percent.
Click here <a href="https://www.propertyobserver.com.au/images/2019/5/1/ANZ-Home-Loan-Portfolio.jpg" target="_blank">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/2019/5/1/ANZ-Home-Loan-Portfolio.jpg" alt="">
At $269 billion lent, its entire loan book has 1 million accounts, down on the 1,018,000 this time last year.
Some 82 pecent of loans are variable.
Click here <a href="https://www.propertyobserver.com.au/images/2019/5/1/ANZ-Australi-Division-Portfolio.jpg" target="_blank">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/2019/5/1/ANZ-Australi-Division-Portfolio.jpg" alt="">
There is an average 55 percent LVR compared with an originating 67 percent LVR. 
The average loan size has kept up to $269,000, up from $266,000 this time last year.
ANZ says it has 15.1 percent market share.
Around 52 percent of loans are broker originated.
ANZ Banking Group met expectations against a difficult operating environment with 2 per cent rise in cash profit to $3.564 billion.
 
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jchancellor-FAypfDUnLy

ANZ's home loan portfolio shows big drop in interest-only borrowers

<html><body>
Australia’s fifth largest home loan lender, ING, has dropped rates on several fixed home loans by up to 0.19 per cent. 
The rate cuts affect ING’s 2, 3 and 5-year fixed home loans for owner-occupier customers paying principal and interest. 
RateCity data shows almost half of all leaders have cut fixed rates on over 500 products since the beginning of the year.  
Sally Tindall, research director at RateCity.com.au said the move from ING came on the back of fixed rate cuts from three of the big four banks over the last two weeks.  
“Now that CBA, Westpac, NAB and ING have slashed fixed rates in recent weeks, other lenders may be forced to consider cutting their rates to maintain a competitive edge,” she said.  
“In particular, all eyes are on ANZ who currently has the highest 3 and 5 year fixed rates out of the big banks for owner occupiers paying principal and interest.” 
ING fixed rate changes - owner occupier rates principal and interest repayments
<div class="_2QenMz1fGG4qxjqu3PlFkl">
<div class="_2QenMz1fGG4qxjqu3PlFkl">
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap>
Product
</td>
<td valign="bottom" nowrap>
New rate
</td>
<td valign="bottom" nowrap>
Old rate
</td>
<td valign="bottom" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
2 year - Orange Advantage
</td>
<td valign="bottom" nowrap>
3.59%
</td>
<td valign="bottom" nowrap>
3.75%
</td>
<td valign="bottom" nowrap>
-0.16%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
3 year - Orange Advantage
</td>
<td valign="bottom" nowrap>
3.64%
</td>
<td valign="bottom" nowrap>
3.83%
</td>
<td valign="bottom" nowrap>
-0.19%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
5 year - Orange Advantage
</td>
<td valign="bottom" nowrap>
3.99%
</td>
<td valign="bottom" nowrap>
4.09%
</td>
<td valign="bottom" nowrap>
-0.10%
</td>
</tr>
</tbody></table>
Lowest fixed rates – major banks
<div class="_2QenMz1fGG4qxjqu3PlFkl">
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap>
 
</td>
<td nowrap>
CBA
</td>
<td nowrap>
Westpac
</td>
<td nowrap>
NAB
</td>
<td nowrap>
ANZ
</td>
</tr>
<tr>
<td>
2 year
</td>
<td nowrap>
3.79%
</td>
<td nowrap>
3.79%
</td>
<td nowrap>
3.69%*
</td>
<td nowrap>
3.75%
</td>
</tr>
<tr>
<td>
3 year
</td>
<td nowrap>
3.79%
</td>
<td nowrap>
3.69%*
</td>
<td nowrap>
3.79%
</td>
<td nowrap>
3.99%
</td>
</tr>
<tr>
<td>
5 year
</td>
<td nowrap>
4.09%
</td>
<td nowrap>
4.09%
</td>
<td nowrap>
4.09%
</td>
<td nowrap>
4.19%
</td>
</tr>
</tbody></table>
</div>
*First home buyer special
Lowest fixed rates – low rate lenders
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap>
2 years
</td>
<td valign="bottom" nowrap>
Mortgage House
</td>
<td valign="bottom" nowrap>
3.57%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
3 years
</td>
<td valign="bottom" nowrap>
Suncorp Bank
</td>
<td valign="bottom" nowrap>
3.49%
</td>
</tr>
<tr>
<td valign="bottom" nowrap>
5 years
</td>
<td valign="bottom" nowrap>
Greater Bank
</td>
<td valign="bottom" nowrap>
3.74%
</td>
</tr>
</tbody></table>
 
  
 
</div>
 
  
<div class="_2QenMz1fGG4qxjqu3PlFkl">
  
 
</div>
</div>
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ING counters the big banks with its own rate cuts

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Independent online mortgage marketplace HashChing has brought to market a conveyancing partnership that provides customers with a one stop shop solution for legal assistance on home loan settlements.
Removing one of the major pain points of property transactions, for a fixed fee, customers can be instantly partnered with experienced solicitors who specialise in real estate settlement.
HashChing is a mortgage marketplace that connects customers looking for home loan deals with experienced community rated mortgage brokers nationwide.
Since launching less than four years ago, HashChing has settled more than $1.3 billion worth of home loan applications and has helped more than 46,000 Australians get a better deal on their home loans. 
“We know that around 20% of settlements are delayed due to a conveyancer’s inefficiency and we’re tackling this problem head on,” said HashChing CEO Mandeep Sodhi. 
“We also know that many transactions are very complex and often end up requiring litigation, which is why partnering with experienced solicitors makes so much sense.”
Sodhi said research showed two out of three first home buyers did not know what conveyancing was, with nearly 40% mistakenly believing it referred to checking property boundaries or other physical matters with the property.
“Our army of community rated mortgage brokers already help Australian borrowers by dealing with banks and lenders on their behalf, and the online mortgage marketplace is now looking to streamline the legal part of the process as well.” he said.
Once a HashChing mortgage broker lodges the loan, borrowers can utilise conveyancing services and get connected to certified solicitors within minutes from their HashChing consumer portal.  
“Getting all the legal documents organised has traditionally been one of the most time-consuming and inefficient parts of buying a property.
"Borrowers are at the mercy of conveyancers, who can sometimes drag the process out unnecessarily and worse – charge more for their own delay.  
Sodhi said borrowers looking to purchase a property without an experienced solicitor were potentially gambling with hundreds of thousands of dollars. 
“By integrating a conveyancing solution into the HashChing online portal, our prices are fixed starting from $995 incl GST plus disbursements, there are no nasty surprises or hidden fees for borrowers, either,” he said.
Customers can log-in to the online dashboard at any stage to check progress of their application with the solicitor.
In addition to the real-time updates to borrower, the HashChing partner broker is also kept updated on the progress through their portal with the exact breakdown of the home loan costs that need to be lodged with the lender.  
 
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New conveyancing service to make HashChing home loan process faster

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New figures have revealed national lending activity has slumped to the lowest levels in five years.
The AFG Mortgage Index and Competition Index released today showed lending volumes across Australia in the first three months of 2019 dropped 10 per cent on the previous quarter.
Volumes in the March quarter were 15 per cent lower than the same period last year.
The 23,049 loans lodged during the quarter represented the lowest number in six years, while the $11.6 billion volume was the lowest quarterly figure since 2014.
AFG Chief Executive Officer David Bailey said the numbers provide stark evidence that the lending environment has significantly deteriorated.
"It’s a wake-up call for policymakers.
"The softening of the residential market across the country is a real concern, with Sydney and Melbourne driving the downturn and some states enduring a prolonged period of falling activity.
“Despite moves by regulators to encourage activity, investment lending remains at an all-time low of 26 per cent amid the well- documented concerns around property values, particularly on the eastern seaboard.
“Today’s data confirms we have reached a critical time in the housing market cycle and we would urge policy makers to tread carefully in any regulatory responses flowing from the Royal Commission.
"This is a time for considered policy formulation that considers the full potential impact on the lending market. It is clear, the broader implications for the Australian economy are huge if we get it wrong.
“The volume of loans written in WA for the quarter of just over $1.3 billion represents the lowest volume seen in WA since the inception of the AFG Mortgage Index. Whilst there has been some talk of WA moving into a brighter resources-led period of sunshine, it is clear the local economy needs broader stimulus.”
The tight lending market and falling house prices have contributed to a decline in NSW volumes of almost 20 per cent on the same quarter in 2018. Victoria is down 16 per cent over the same period.
All other states are also much lower than the same time last year. The only lift in volume over the quarter was seen in the Northern Territory, with an increase in the average loan size and a decrease in Loan to Value Ratios.
Following the relaxation of APRA-imposed caps on Interest Only (IO) lending, AFG noted a small lift in IO lending driven by the major lenders.
Four years ago, fuelled largely by strong investor demand, Interest Only loans accounted for around 60 per cent of all loans written. Now, with investor loans accounting for a quarter of new business, Interest Only loans account for just 19 per cent of lodgements.
The breakdown of mortgages between major lenders – the ‘big four’ banks and their affiliated brands – and non-majors highlights the crucial role mortgage brokers play in delivering competition to the home loan sector.
The AFG Index showed the market share of non-majors has now been locked in above 40 per cent for more than a year despite a marginal increase for the majors to 58.6 per cent of total lodgements.
Mr Bailey said “The value mortgage brokers deliver by facilitating a competitive lending environment is most starkly shown by the ongoing decline in the market share of the major banks, which peaked in Q3 of 2013 at 78.2 per cent. Outside of the mortgage broking channel, the majors have control and dominate the market. The distribution capability provided by mortgage brokers enables the country’s non-major lenders to compete.
<a href="https://www.propertyobserver.com.au/images/2019/4/16/AFG%201.jpg" target="_blank">Click here</a> to enlarge: 
<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/2019/4/16/AFG%201.jpg" alt="">
Source: AFG
“With the sole exception of First Home Buyers, who remain the last bastion of major bank lending, the growth in non-major lending has been broadly uniform across all other customer types.”
Major lenders are ahead on fixed-rate loans, with a steady increase across the quarter, leaving four out of five homebuyers that chose the certainty of fixing their interest rates doing so with a major lender.
Examination of the overall volumes going to the major bank reveals the big losers over the past six months have been ANZ and NAB. NAB’s share has halved over the past six months to now be as low as five per cent.
The Westpac stable of brands emerged as big winners, as has Bankwest – whose renewed focus on broker and customer service has paid strong dividends in Western Australia. Bankwest accounts for more than one in every five WA originations. Together with CBA, Bankwest has a stranglehold on more than 35 per cent of all loans written in the State.
<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/2019/4/16/AFG%202%20.jpg" alt="">
<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/2019/4/16/AFG%203.jpg" alt="">
<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/2019/4/16/AFG%204.jpg" alt="">
Source: AFG
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AFG report home loan activity falls to lowest in five years on back of credit squeeze

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Australian prime home loan arrears rose in January, according to a recently published report by S&amp;P Global Ratings.
The Standard &amp; Poor's Performance Index (SPIN) for Australian prime mortgages rose to 1.45% in January, up from 1.38% in December.
The increase however was down from its December to January hike 12 months ago.
Mortgage arrears are generally at their peak in January, following spending over the Christmas and summer holiday months.
The Northern Territory's SPIN is the highest at 3.16%, having seen the highest increase over January (+0.39%).
Western Australia's SPIN follows, up 0.21% to 2.94%.
Click here to enlarge.
<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/2019/4/9/State-Arrears.jpg" alt="">
Tasmania was the only state to see its arrears fall in January, from 1.12% to 1.10%.
Investor loans recorded a larger increase in arrears than owner-occupier loans, rising to 1.40% in January from 1.27% in December.
Owner-occupier arrears are still higher than investor arrears. Their 0.09% rise in January took them to 1.69%.
S&amp;P suggest the increases might reflect the ongoing transition from interest-only to principal and interest repayments, which is more common for investor loans.
"We expect refinancing pressures to continue in the current environment of tightened lending conditions. High household indebtedness increases borrowers' sensitivity to changing economic conditions and interest-rate movements," the S&amp;P report stated.
"This vulnerability is greater for borrowers with weaker credit attributes, such as those with high loan-to-value ratio loans. Exposure to loans with higher credit risk is not material in most RMBS portfolios and is unlikely to put any significant pressure on arrears in the short to medium term while employment conditions remain stable.
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jrobinson-rf4aSBido9

Australian prime home loan arrears rose in January

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One of the biggest changes for investors has been the repricing of investment home loans, in response to the removal of the interest-only investment lending caps from January 2019 and the continuing slowdown in demand, according to Canstar.
Since September 2018, 47% of the lenders on Canstar’s database have decreased one or more of their investment interest-only offerings across fixed or variable rate loans.
The average interest rate for interest-only has come down across variable, one-year fixed, two-year fixed, three-year fixed and five-year fixed by up to 0.08%.
“What’s interesting is while we’re seeing the average investor home loan rates decrease, the lowest offer in the market is where the greatest movement has happened over the last six months with decreases of up to 0.20% on fixed loans,” Mickenbecker adds.
When comparing the average one-year fixed interest only loan amount of $400,000, the average decrease could mean a saving of up to $253 per year. Looking at the market minimum the rate cuts could mean a potential annual saving of up to $518 for investment property owners.
On the reverse side, the majority of increases for investment lending that occurred since September 2018 have been on variable rate loans, with an average increase of 0.15%, meaning that investors are paying higher rates for their existing loans.
While that market has observed more increases on variable rate investment loans than fixed, there has still been a 0.01% reduction on the average variable rate for new borrowers. The reduction has resulted from a number of large downward movements with the average decrease being 0.25%.
Mickenbecker says with great deals out there for new loans it’s a good time for investors, and homeowners for that matter, to check their rate, fees and loan features to see if they could be getting a better deal.
With lenders’ home and investment loan interest rates on the move in both directions, Australia’s biggest financial comparison website, Canstar, released its latest Home Loan Star Ratings research.
Canstar considered more than 4,800 home loans finding that on average a 5-Star Rated home or investment loan had access to lower interest rates compared to the market average.
Canstar’s finance expert, Steve Mickenbecker says it’s not hard to see how borrowers may be left confused as to whether they’re getting a good deal or should look to refinance their home loan.
While the latest Australian Bureau of Statistics figures show a 17.1% year-on-year decline in value for new lending commitments to owner occupiers compared with a 28.6% decline in value for lending commitment for investment dwellings, the door is still wide open for investors, he said.
Canstar has awarded a 5-Star Rating to 26 home loan lenders after they were found to offer outstanding value.
Owner-Occupier Home Loan Star Ratings
Outstanding Value – Home Lender
This award goes to home loan lenders that provided outstanding value products to owner-occupiers across variable and fixed-rate loan terms considered in these ratings. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000, for borrowers making principal and interest repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>Bank Australia</li>
<li>Freedom Lend</li>
<li>Greater Bank</li>
<li>Heritage Bank</li>
<li>Homestar Finance</li>
<li>HSBC</li>
<li>ING</li>
<li>Qudos BanK</li>
<li>RACQ Bank</li>
</ul>
The new Canstar research found owner-occupiers with a 5-Star Rated home loan had access to lower interest rates compared to the market average.
Outstanding Value – Variable Home Lender
This award recognises lenders that consistently offered outstanding value products to owner- occupiers across varying loan amounts. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>AMO Group</li>
<li>Easy Street Financial Services</li>
<li>Freedom Lend</li>
<li>Homestar Finance</li>
<li>HSBC</li>
<li>MOVE Bank</li>
<li>Pacific Mortgage Group</li>
<li>Reduce Home Loans</li>
<li>SCU</li>
</ul>
The research shows owner-occupiers who choose a 5-Star Rated home loan have the potential to save themselves thousands of dollars over the life of the loan. For instance, the average variable interest rate for a 5-Star Rated residential loan valued at $350,000 with an 80% loan-to-value ratio (LVR) and principal and interest repayments was 3.68%. This compares favourably to the marketaverage of 4.47% out of all products on Canstar’s database. Over a 25-year loan term, that difference could equate to more than $50,000 in savings on the total cost of the loan.
Outstanding Value – Fixed Home Lender
This award recognises home loan lenders that consistently provided outstanding value products to owner-occupiers across one, two, three and five-year fixed rate loan terms. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>BankVic</li>
<li>Freedom Lend</li>
<li>Greater Bank</li>
<li>ING</li>
<li>Newcastle Permanent</li>
<li>Qudos Bank</li>
<li>RACQ Bank</li>
<li>TicToc Home Loans</li>
<li>UBank</li>
</ul>
Borrowers looking to fix their home loan for a set period may want to consider the difference in interest rates between a 5-Star Rated loan and the market average. For example, the average 5-Star three-year fixed interest rate for a residential loan valued at $350,000 with an 80% LVR and principal and interest repayments was 3.83%, compared to the average from our database of 4.19%.
Investment Home Loan Star Ratings
Outstanding Value – Investment Home Lender
This award acknowledges lenders that consistently offered outstanding value products to investors across the variable and fixed-rate loan terms considered in these ratings. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest and interest-only repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>Freedom Lend</li>
<li>Greater Bank</li>
<li>Homestar Finance</li>
<li>loans.com.au</li>
<li>Newcastle Permanent</li>
<li>RACQ Bank</li>
<li>TicToc Home Loans</li>
<li>Virgin Money</li>
<li>Reduce Home Loans</li>
<li>Suncorp Bank</li>
</ul>
The research revealed 5-Star Rated home loans offer investors lower interest rates when compared to the market average within the investor home lender profile.
Outstanding Value – Investment Variable Home Lender
This award goes to home loan providers that consistently offer outstanding value products to investors across variable loans. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest and interest-only repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>Freedom Lend</li>
<li>Gateway Bank</li>
<li>Homestar Finance</li>
<li>loans.com.au</li>
<li>Newcastle Permanent</li>
<li>Pacific Mortgage Group</li>
<li>RACQ Bank</li>
<li>Reduce Home Loans</li>
<li>State Custodians</li>
<li>Community First Credit Union</li>
</ul>
The research revealed there were potential savings to be found for investors if they chose a 5-Star Rated home loan. For instance, the average 5-Star variable interest rate for an investment loan valued at $350,000 with an 80% LVR and principal and interest repayments was 4.25%, while the interest-only rate was 3.98%. These average rates compare favourably to the market averages from our database of 5.08% and 4.77%, respectively. These differences can potentially add up to be quite significant over time. For example, over a 25-year loan term, that difference means investors making principal and interest repayments could save more than $51,000 on the total cost of the loan.
Outstanding Value – Investment Fixed Home Lender
This award recognised lenders that consistently provided outstanding product offerings to investors across one, two, three and five-year fixed rate loan terms. Home loans were assessed across four loan amounts ranging from $200,000 up to $750,000 for borrowers making principal and interest and interest-only repayments. Here are the winners, listed in alphabetical order:
<ul>
<li>Aussie</li>
<li>Freedom Lend</li>
<li>Greater Bank</li>
<li>Newcastle Permanent</li>
<li>RACQ Bank</li>
<li>Suncorp Bank</li>
<li>TicToc Home Loans</li>
<li>Virgin Money</li>
</ul>
For borrowers looking to fix their investment home loan, the difference in interest rates between a 5- Star Rated loan and the market average can be significant. For instance, the average 5-Star three- year fixed interest rate for an investment loan valued at $350,000 with an 80% LVR and principal and interest repayments was 4.01%, while the interest-only rate was 4.11%, compared to averages from our database of 4.32% and 4.53% respectively.
Line of Credit Star Ratings
Outstanding Value – Line of Credit
Canstar’s Research team compared the price and features of 48 lending institutions that provided a line of credit secured by a property. Here are the winners, listed in alphabetical order:
<ul>
<li>Aussie</li>
<li>BankVic</li>
<li>Suncorp Bank</li>
<li>State Custodians</li>
</ul>
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Canstar reveals top rated lenders for investors

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National Australia Bank's digital bank UBank will launch Mia (pictured) (short for My Interactive Agent) in what it says is the world's first digital human in the home loan space.
It comes after partnering with a New Zealand tech company to create an artificially intelligent assistant to help in customer applications.
Partnering with FaceMe, a company known for their AI-powered digital humans, home loan borrowers will go face-to-face with Mia and have the ability to interact each step of the way.
UBank aren’t removing their live chat service, simply complementing it with the robot.
Mia will be in action later this month on the UBank website.
FaceMe uses IBM Cloud and Watson, to help create the digital humans who can see, hear, talk with and remember customers.
<div>
<div id="gpt-ad-interscroller-349006" class="gpt-ad" data-gpt-ad-unit-path="/8456/IDG.AU_B2B_CIO.com.au/industries_section" data-gpt-size-mapping="[[[0, 0], [[3, 3]]]]" data-gpt-sizes="[[3, 3]]" data-gpt-targeting='{"node": ["657542"], "idgau_tax": ["news"], "country": ["AU"], "site": ["cio"], "kw": ["service", "mobility", "mobile", "device", "data", "cloud"], "sect": ["industries", "finance_banking_insurance"], "idgau_search_referrer": ["no"], "type": ["article"]}' data-google-query-id="CIu_4ty1suACFcINaAodJ3wBmQ">The platform will be multi-modal and takes input from computer vision, speech and text.</div>
</div>
Using supervised AI training, the digital human is able to combine natural language, understanding with situational awareness, to create an appropriate response.
This is then delivered as synthesised speech and expression by the FaceMe-created UBank digital avatar ‘Mia’.  She can also use fun gifs and animations during her chats.
The assistant was created in partnership with FaceMe, which recently secured US$10 million Series A capital funding after attracting a series of investors from Australia and New Zealand.
The project to create Mia, took about four months.
“Our vision is to enable companies like UBank to create more meaningful and valuable experiences for their customers," FaceMe CEO, Danny Tomsett, said.
"Mia offers an emotionally connected experience for servicing customers making an exciting and important life decision."
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UBank to trial artificially intelligent home loan assistant, Mia

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EXPERT OBSERVER
In November, almost 10,500 first-home buyers took out a home loan, just off the highest number in almost nine years. And as a proportion of all buyers, the share of first-home buyers is at 6-year highs.
The proportion of first-time buyers in the home loan market rose from 18.1 per cent in October to a 6-year high of 18.3 per cent in November (decade-average 17.7 per cent).
The number of loans (commitments) by home owners (owner-occupiers) fell by 0.9 per cent in November after rising by 2.1 per cent in October (the largest gain in 12 months).
Clearly these buyers are celebrating the greater choice of properties on the market, more attractive prices and super-low interest rates.
Over the year to November, almost $238 billion in loans were taken up by owner-occupiers to buy property, just below the all-time high of $240 billion in the year to August. While investors have retreated from the market on the belief that price gains will be harder to achieve, budding home owners are still out in force. 
The number of owner-occupier home loan borrowers in Tasmania stands at 6½-year highs in trend terms with ACT borrowers at record highs, South Australian borrowers are at 18-month highs and Western Australian borrowers at 10-month highs. Too much focus is placed on NSW and Victoria when housing markets in many other parts of the country are doing well.
It is important that investors don’t get duped by ‘lazy analyses. That is, analysis that assumes trends in aggregate national figures apply across all market sectors and regional economies. As data released yesterday shows, the number of homes being built at present is just off all-time highs. And there are still healthy numbers of budding home owners in the market, especially among first-home seekers.
What do the figures show? 
The number of loans (commitments) by home owners (owner-occupiers) fell by 0.9 per cent in November after rising by 2.1 per cent in October (the largest gain in 12 months). But loans are down by 7.9 per cent on the year. 
Excluding refinancing, new loans fell by 0.5 per cent after rising 2.3 per cent in October. 
Loans by owner-occupiers for the construction of homes fell by 2 per cent after lifting 3.3 per cent in October. 
Loans to buy newly-erected dwellings rose by 3.4 per cent – first gain in six months. 
Loans for the purchase of established dwellings (excluding refinancing) fell by 0.6 per cent after rising 2.3 per cent in October. 
The number of refinancing transactions fell by 1.1 per cent. 
Changes in home loans across the country: NSW (down 1.5 per cent); Victoria (up 0.7 per cent); Queensland (down 0.7 per cent); South Australia (down 0.8 per cent); Western Australia (up 2.4 per cent); Tasmania (down 9.2 per cent); Northern Territory (up 22.4 per cent); ACT (down 0.6 per cent).
The value of new housing commitments (owner occupier and investment) fell by 2.5 per cent. 
Owner-occupier loans fell by 1.5 per cent while Investment loans fell by 4.5 per cent. Over the year to November investor loans are down by 23.4 per cent and owner-occupier loans have fallen 7.3 per cent. 
The value of loans by owner-occupiers and investors to build new homes fell 7.2 per cent in November to $2.6 billion after rising 5.8 per cent in October. 
The value of cancelled loans totalled $1.41 billion up from $1.33 billion a year earlier. 
Commitments actually advanced (loans made) totalled $20.66 billion, down from $21.55 billion a year earlier. 
The proportion of first-time buyers in the home loan market rose from 18.1 per cent in October to 6-year highs of 18.3 per cent (decade-average 17.7 per cent). 
The proportion of fixed rate loans rose from 16.3 per cent to a 14-month high of 16.9 per cent. And the average home loan across Australia was $384,700, down 1.1 per cent on the year
What are the implications for interest rates and investors? 
Builders and real estate agents will face differing prospects depending on their location. At present five of the eight states and territories are showing monthly gains in home loans in trend terms. NSW, Victoria and Queensland are in the downturn phase of the cycle. 
Almost 17 per cent of borrowers opted for fixed-term loans in November, a 14-month high. Borrowers that took out 3-year fixed loans in 2015 and 2016 are seeing a major improvement in their budgetary situation when rolling over loans.
CommSec expects no change in official interest rates until late in 2019 at the earliest.
Craig James is the Chief Economist for CommSec
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cjames-5S2v74qSNK

First home buyer numbers reach six year high: Craig James

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The performance of Australian residential mortgage-backed securities (RMBS), asset backed securities (ABS) and covered bonds will remain largely strong in 2019 amid a cooling housing market, according to Moody's research.
Moody's researchers noted, RMBS delinquencies will increase moderately from low levels due to a house price correction. 
Meanwhile, the securitization of small and medium enterprise (SME) and ‘green’ loans will grow in 2019.
The researchers stated, "the quality of mortgages in new RMBS issued by banks and non-bank lenders in 2019 will be healthy overall."
"However, pressure to sustain high growth could pose a risk to non-bank credit quality over the medium-term, if it pushes these lenders into riskier segments of the mortgage market," they said.
They indicated that the performance of mortgages backing outstanding RMBS will remain strong in 2019, given continued GDP growth and low unemployment.
However, mortgage delinquencies will increase moderately from low levels, given high household debt, a cooling housing market and the conversion of a large number of interest-only loans to principal and interest loans.
Moody's beleive that the securitization of SME and green loans will be a growing feature of the Australian ABS sector in 2019.
They said, "the SME ABS sector will develop amid growing lending to small businesses by emerging technology-enabled financial institutions."
"The green securitisation sector will develop gradually, on the back of growing sales of alternative fuel vehicles and improving consistency of green mortgage standards."
The performance of outstanding ABS will remain strong overall in 2019, reflecting healthy macroeconomic conditions. However, auto ABS delinquencies will increase moderately from low levels, given the increasing proportion of consumer auto loans in the underlying pools.
Moody's noted, "the credit quality of covered bond issuers is high and this will support the credit quality of covered bonds in 2019."
"The credit quality of covered bonds has also remained robust in the face of risks in the housing market, reflecting the sound quality of cover pool mortgages," they added.
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