A wave of investment, renewal and precinct growth continues to shape the northern edge of Macquarie Park, where daily life is supported by a rare combination of university activity, corporate employment, major retail, and expansive green corridors. It’s this convergence of amenity and connectivity underpins the setting for <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>’s <a href="https://www.apartments.com.au/new-apartments/la-vera-94-talavera-road-macquarie-park-nsw-2113">La Vera</a>, which has now topped out and is tracking toward completion in mid-2026.

Within this pocket of the precinct, residents move easily between the area’s key anchors. Macquarie Centre, home to more than 360 retailers, fresh food offerings, dining and entertainment, sits at the heart of local convenience and functions as a major transport interchange. The Metro, T1 rail line and extensive bus network place much of Sydney within quick reach, while surrounding arterial links support direct access to neighbouring districts.

[smartcode_project:default project_id=134951 project_image_fid=5829]

Green space remains a defining feature of the immediate environment. Lane Cove National Park stretches along the northern boundary of the precinct, offering bushland trails, cycling routes and quiet riverfront pockets. Shrimptons Creek and the campus grounds of Macquarie University extend these recreational networks, softening the urban setting and creating a daily connection to nature that informs the project’s architectural response.

<a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> have shaped La Vera around these contrasts. The building’s northern elevation adopts an organic, curvilinear form that mirrors the natural topography of the national park. Three sculpted forms soften the tower’s profile and encourage a stronger transition between indoor living areas, balconies and the broader landscape.

[smartcode_project:default project_id=134951 project_image_fid=223737]

Cox Director Felipe Miranda says the building’s outlook played a central role in the design process.

“The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park… The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies,” Felipe Miranda of Cox Architecture said.

Toward the city-facing side, the design shifts to a more urban expression. A gridded facade and extensive glazing capture CBD views, creating a dual strategy that blends ecological outlooks with metropolitan orientation.

[smartcode_project:default project_id=134951 project_image_fid=5827]

La Vera delivers 169 residences across one- to four-bedroom layouts, reflecting the needs of young families, downsizers, first-home buyers and investors seeking long-term certainty within a high-amenity location. From the project, residents can walk to Macquarie University, Macquarie Hospital and nearby corporate offices, reach national park trails within minutes, and enjoy retail and dining without relying on a car.

The project is delivered by Urban Property Group, a 4.5-star iCIRT-rated developer-builder with more than three decades of experience. The company has become a leader in adopting 10-Year Latent Defects Insurance (LDI), first introduced on its Parq Bexley development and now embedded into its pipeline.

[smartcode_project:default project_id=134951 project_image_fid=223727]

La Vera is the first development in Macquarie Park approved to offer this 10-year LDI policy, adding another layer of protection for purchasers and reinforcing the transparency of the construction process.

Urban Property Group CEO Patrick Elias says this assurance has become increasingly important for buyers navigating the off-the-plan market.

“Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been… Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share,” Urban Property Group CEO Patrick Elias said.

Urban Property Group's in-house construction team is forecasting a mid-2026 completion, with <a href="https://www.apartments.com.au/project-marketer/home789">HOME789</a> appointed as the project marketer.

[smartcode_project_cta:default project_id=134951]

Staff Writer

La Vera delivers a nature-connected address within Macquarie Park’s core

<a href="https://www.apartments.com.au/buildings/aura-by-aqualand-north-sydney-168-walker-street-north-sydney-nsw-2060">AURA</a>&nbsp;doesn’t just rise over North Sydney, it redefines it. Now in its final release, <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a>’s $1 billion architectural statement is not just complete, but already reshaping the way people live, connect and dine in this rapidly evolving harbourside CBD.

Positioned beside the new Victoria Cross Metro Station and boasting panoramic views across Sydney Harbour, Aura’s 386 residences crown a mixed-use precinct designed with unapologetic ambition. The curvaceous sandstone-inspired form by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, paired with <a href="https://www.apartments.com.au/interior-designers/richards-stanisich">Richard Stanisich</a>’s understated interiors, sets a design tone that’s both monumental and intimate.

At its peak, literally, the two penthouses so spectacular they command their own names; La Davina and Il Magnate. The residents are spread across the&nbsp;entire top floor, offering what many consider the most refined residences ever built in North Sydney. Designed by Richard and Kirsten Stanisich, each four-bedroom home is meticulously crafted to evoke calm, space, and permanence.&nbsp;

<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/VB70993aG-I?si=adRBlXQliYmYvaSz" title="YouTube video player" width="560"></iframe>

The kitchens are fully wrapped in natural stone, with integrated Gaggenau appliances, Sub-Zero fridges, concealed sculleries, and even a zip hydro tap delivering boiling, chilled and sparkling water on demand. A linear stone fireplace anchors the open-plan living space, dividing lounge and dining zones with quiet sophistication.&nbsp;

[smartcode_project:default project_id=30959 project_image_fid=292861]

The master suite, meanwhile, feels more like a private retreat, complete with a custom stone makeup vanity, walk-through dressing area, and spa-inspired ensuite with heated stone floors, a freestanding Villeroy &amp; Boch tub, and timber veneer joinery throughout.

Kirsten Stanisich, Director of Richards Stanisich, said the penthouses offer incredible scale reflective of a single residence.&nbsp;

“We sought inspiration for these remarkable residences from the classic top-floor Parisian apartment," Stanisich said.

"We looked at what made these French apartments so elegant and found it really came down to their scale. It was ultimately this generosity of space that we used for the AURA penthouses, where we’ve designed considered rooms with deep large-scale proportions."

[smartcode_project:default project_id=30959 project_image_fid=310337]

Everyday living at Aura feels no less elevated. A dedicated 24-hour concierge, Technogym fitness centre, sky dining terraces, and a resort-style pool serve a lifestyle designed to rival luxury hotels.

At street level, Aqualand’s own hospitality arm, Etymon Projects, curates a precinct of LA-style bistros, Japanese fine dining, and local wine bars, all seamlessly integrated into the building’s sculptural podium.

[smartcode_project:default project_id=30959 project_image_fid=310337]

This final chapter, aptly dubbed The Finale, is more than a sales phase, it’s an invitation to two of the most exclusive apartments ever to be built in North Sydney.

With limited residences remaining, buyers can access curated incentives including stamp duty rebates, rental guarantees, legal fee coverage, and even $20,000 towards dining within the precinct.

From generous one-bedders to The Icons, two singular penthouses priced well into prestige territory, Aura’s offerings reflect a scale and calibre rarely seen in urban Sydney. And with move-in now immediate, this is no longer a promise of future luxury. It’s happening.

[smartcode_project_cta:default project_id=30959]

Aqualand unveils penthouse collection at AURA By Aqualand in North Sydney

There’s no sign of the development wave that began several years ago slowing along Old Burleigh Road.

Around 10 new apartment developments are either underway or preparing to launch along the 800-metre strip stretching from the southern edge of Surfers Paradise towards the heart of Broadbeach, collectively adding just shy of 1,000 new apartments to the beachfront corridor.

The latest plans propose a further 30 apartments to replace an original six-unit walk-up on a 658 sqm site at <a href="https://www.apartments.com.au/new-apartments/20a-old-burleigh-road-surfers-paradise-qld-4217">20A Old Burleigh Road</a>. The 14-storey building has been designed by Ferro Chow Architecture, which recently joined the Elevation Architecture Group.

The developer behind the project is Geoffrey Booth, whose Future Liv In has focused on delivering rental accommodation across regional Australia.

<img alt="Old Burleigh Road" data-entity-type="file" data-entity-uuid="99d393e7-d404-43bc-80cb-6255c39b83d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-05%20at%2012.28.44%E2%80%AFPM.png?VersionId=ZFT8F3mOny4M4ut.kFF3woC9WH9oR5gT" />

The Old Burleigh Road development will comprise 18 two-bedroom apartments, 10 three-bedroom apartments, and a single four-bedroom residence occupying the entirety of level 12. Above, the building will be crowned by a two-storey penthouse with its own private lift, several multi-purpose rooms, and two rooftop terraces — one featuring a puppy lawn and spa, the other offering a private swimming pool, sunset deck, and built-in barbecue.

Resident amenities will be located on the second level and include a pool with adjoining spa, cabana, and pool deck, along with an indoor residents’ lounge featuring a bar and an alfresco barbecue kitchen.

In the architectural statement submitted by Elevation Architecture, the project is referred to as “UMI”, which the firm says has been “inspired by the majestic hinterlands and shaped by the coastal climate”.

“It is an exemplar of how community living can still feel at one with nature, breathable, and deeply connected in place,” the architects noted.

They added that the site benefits from established building separation to adjoining towers, helping to maintain privacy, sunlight, and residential amenity, while still offering direct beach access within an urban setting.

“Drawing inspiration from the Gold Coast hinterlands and the region’s natural landscape, the podium and tower detail highlights the contrasting elements of treetop green and cliff-face peach. The vibrant texture and materiality shaped by time has a richness in depth and character.”

<img alt="Old Burleigh Road" data-entity-type="file" data-entity-uuid="b3d6c923-a0ab-4d74-86da-177313447e8e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-05%20at%2012.28.38%E2%80%AFPM.png?VersionId=i2fygmoVQM6hWpbATTAW_yTitoMTrnI1" />

Old Burleigh Road has become a hotspot for developers, with the three-tower Jewel development kickstarting a wave of projects up and down the strip when it was completed in 2020.

Currently under construction and approaching completion is <a href="https://www.apartments.com.au/new-apartments/faro-broadbeach-123-old-burleigh-road-broadbeach-qld-4218">FARO Broadbeach</a> by 5Point and Bottega, 21 large-scale half- and full-floor apartments. 5Point is also behind the recently launched <a href="https://www.apartments.com.au/new-apartments/lumara-108-old-burleigh-road-broadbeach-qld-4218">Lumara</a>, another 37 apartments to add to the pipeline.

Luxury builder GRAYA is progressing construction on <a href="https://www.apartments.com.au/new-apartments/enclave-by-graya-118-old-burleigh-road-broadbeach-qld-4218">Enclave</a>, its first Gold Coast tower, while Polycell remains the most active developer on the street. They are preparing to launch <a href="https://www.apartments.com.au/new-apartments/sandpiper-broadbeach-155-old-burleigh-road-broadbeach-qld-4218">Sandpiper</a>, a 50-storey redevelopment of the former Sandpiper Holiday Resort that will deliver around 200 apartments alongside extensive resident amenity. The group also has another 130-apartment project approved nearby, as does <a href="https://www.apartments.com.au/news/qld/dvb-approved-for-second-broadbeach-apartment-development">Dean Gallagher’s DVB Projects</a>.

Joel Robinson

First look: Old Burleigh Road apartment development wave continues

Sunshine Coast developer Habitat Development Group continues to position itself as one of the region’s largest new apartment developers.

Its latest project is in Maroochydore, where it is currently delivering <a href="https://www.apartments.com.au/new-apartments/the-millwell-2-millwell-road-east-maroochydore-qld-4558">The Millwell</a>. Adjacent to the new 53-hectare Maroochydore City Centre project, Habitat is planning a further 180 apartments on a 3,468 sqm site at <a href="https://www.apartments.com.au/new-apartments/132-136-aerodrome-road-maroochydore-qld-4558">132–136 Aerodrome Road</a>. The site was purchased with approval for a smaller 13-storey, 103-unit building.

Habitat will demolish the two existing retail centres, currently home to the Salvation Army Family Store and Neighbours Aid, and replace them with an 18-storey building featuring the significant rooftop amenities that have become a hallmark of Habitat developments in recent years. The rooftop will include both indoor and outdoor spaces, anchored by an infinity swimming pool.

<img alt="Maroochydore" data-entity-type="file" data-entity-uuid="ad434d07-666b-4614-b33e-530ad6a2d261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-05%20at%2010.12.33%E2%80%AFAM.png?VersionId=7pyLsPWKQuwv0us3_v.9DmbzEc2VZe9Z" />

There will be a mix of one- to four-bedroom apartments.

The Development Assessment Report, submitted to the Sunshine Coast Council, says the proposal&nbsp;is not speculative, but a response to both zoning intent and demonstrated housing need.

“The proposed development represents an appropriate and logical intensification of the site, consistent with the planning framework and the intended urban outcomes for the locality.”

Across the Sunshine Coast, councils are increasingly scrutinising not just height or yield, but whether new projects genuinely align with the long-term structure plans underpinning growth corridors. The&nbsp;ASTP Planning Report&nbsp;reinforces the approach, noting that the project has been shaped around site responsiveness rather than generic typology.

“The development has been designed to respond to the physical constraints and opportunities of the site, while delivering a high-quality residential outcome that integrates with the existing and emerging urban context.”

<img alt="Habitat" data-entity-type="file" data-entity-uuid="3a03fc54-4ca5-4868-88d0-eeced70604e2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-01-05%20at%2010.12.28%E2%80%AFAM.png?VersionId=1pkK3lJrrZjkghTLBReM2zatcas4Nc4B" />

In mid-2025, Habitat, a developer that also builds its own projects, commenced construction on The Millwell, located just over one kilometre from the new proposal. The Millwell will comprise more than 200 apartments across two eight-storey buildings.

Habitat also has two projects on Lake Kawana in Birtinya: <a href="https://www.apartments.com.au/new-apartments/st-clair-birtinya-930-931-waterside-retreat-birtinya-qld-4575">St Clair</a>, a 200-unit, two-building development launched last year and set to welcome buyers this year; and Esperance, a 175-apartment project currently progressing through the development approval process.

First look: Habitat continues to bolster Sunshine Coast apartment pipeline with Maroochydore development plans

John Camilleri, the breeder of legendary racehorse Winx, is set to deliver a landmark two-tower beachfront development that would redefine the Surfers Paradise skyline.

Camilleri, who spent around $100 million acquiring development sites across the Gold Coast in 2025, has lodged plans for two new towers on the dress-circle stretch of Garfield Terrace, just two days before Christmas.

In assembling the site, Camilleri's Celestino Developments has effectively acquired the 71 Garfield project by Iris Capital and AALTO by Weiya Holdings, creating an unrivalled <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">4,000 sqm beachfront holding along Garfield Terrace</a>.

The proposal comprises two residential towers of 55 and 48 storeys, linked by a dramatic skybridge which will home “exclusive VIP and wellness amenities.”

In total, the development would deliver 275 two-, three- and four-bedroom apartments across the two towers, rising above a shared landscaped podium that incorporates a central green space and a beachfront swimming pool stretching more than 90 metres.

<img alt="DBI" data-entity-type="file" data-entity-uuid="097900f3-6bef-4919-b168-b08f2f762876" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-30%20at%209.37.58%E2%80%AFAM.png?VersionId=et0SpmcvaPPVrexI_zWi46BVFtZBxAzx" />

Architecture firm DBI, in documents submitted to Gold Coast City Council, said the project at 63–79 Garfield Terrace would “establish a new benchmark for beachfront residential living on the Gold Coast.”

"The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience. Together, the 48-storey North Tower and 55-storey South Tower form a distinctive twin-tower composition whose dynamic silhouette will make a significant contribution to the Surfers Paradise skyline."

DBI said the architectural language draws inspiration from the fluidity and movement of the coastal landscape.

"Each tower is defined by organic, curving forms and continuous balcony ribbons that wrap the buildings, providing deep shading, enhancing environmental performance, and reinforcing the rhythmic, sculptural expression of the façade. These balcony forms also reduce the apparent mass of the towers while maintaining strong visual continuity from podium to summit. Sculpted reflective downturns run along the western spine of both towers, shifting and lifting as they extend upwards to frame service zones and open eastward to maximise ocean views."

<img alt="Garfield" data-entity-type="file" data-entity-uuid="a2a00ce3-a0e9-45d6-b4b5-b7baed592ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-30%20at%209.53.40%E2%80%AFAM.png?VersionId=DnruWV1dhLrtXOeElwekyd7vPq2gw55t" />

The project’s most striking feature is the skybridge at level 45, which will house executive lounges, formal dining spaces, wellness facilities and panoramic ocean-facing views.

“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI added.

The podium will host an extensive suite of recreational amenities, including resident lounges, private dining rooms, a large open green lawn, and the signature 90-metre pool stretching along the beachfront. The pool is divided into lap, lounge and children’s zones.

The southern end of the podium will accommodate additional wellness facilities, including a gymnasium, plunge pools, treatment rooms and a dedicated yoga lawn.

<img alt="Garfield" data-entity-type="file" data-entity-uuid="ee1b4f25-231f-4804-83b1-a573a1481962" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-30%20at%209.55.47%E2%80%AFAM.png?VersionId=zObzIA3D5w7EwqPsHjr2pKrA4vbB28zL" />

There will be 127 apartments in the North Tower and 148 in the South Tower, including multiple penthouses, while the Enderley Avenue and Oceanway frontages will be activated by a series of food and beverage tenancies.

Camilleri emerged as the most active site acquirer on the Gold Coast in 2025. He spent just over $30 million acquiring Pacific Point, a 10-level Surfers Paradise apartment block and an adjoining three-level duplex, from fellow racing identity and Aquis billionaire Tony Fung. Plans are now underway for a 93-apartment, 40-storey tower on the 1,682 sqm site.

He also paid $53.65 million for the 1,500 sqm Garfield Terrace site previously marketed as AALTO by Weiya Holdings, before acquiring the adjoining parcel from hotel billionaire Sam Arnaout’s Iris Capital, the developer behind V&amp;A Broadbeach.

First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge

loan

EXPERT INSIGHT

So you think it&rsquo;s the right time to dive in and buy a home.

I can&rsquo;t tell you you&rsquo;re wrong. I can tell you it would have been better to do it before prices began soaring, and that if they keep soaring it will get worse still.

When the year began, the typical Sydney price was <a href="https://www.corelogic.com.au/news/corelogic-december-home-value-indices">$872,000</a>. Five months later at the start of June it is <a href="https://www.corelogic.com.au/news/australias-housing-boom-rolls-national-home-values-lifting-another-22-may">$970,000</a>.

That&rsquo;s a jump of almost $100,000 in a matter of months &mdash; an awfully big price for procrastinating.

In Melbourne the typical price has climbed from $682,000 to $740,500. In Perth it has climbed from $471,000 to $521,500, and so on.

And banks are beginning to withdraw the cheapest of their still-very-cheap mortgage rates, at this stage mainly the fixed four-year rates which had been below <a href="https://www.domain.com.au/news/house-hunters-facing-rising-fixed-mortgage-rates-with-further-hikes-expected-1054965/">2%</a>.

So why on earth wouldn&rsquo;t you dive in, cut your living expenses to the bare minimum and try and buy a home while it&rsquo;s the least bit possible?

One (slight) reason to relax is mortgage rates. Despite the increases in fixed four-year rates, three-year rates have barely moved. That&rsquo;s because the Reserve Bank has promised to hold the three-year bond rate <a href="https://www.rba.gov.au/media-releases/2021/mr-21-09.html">constant</a> at 0.1%.

Buying has become a bigger commitment

The three-year bond rate determines the cost to banks of their three-year fixed rate mortgages.

The Reserve Bank has said it does not expect to lift its 0.1% cash rate until &ldquo;2024 at the earliest&rdquo;. Movements in the cash rate determine movements in variable mortgage rates.

But there is another reason for proceeding with caution and taking stock.

For our parents, buying a home was an exceptionally good deal, not only because homes were cheaper &mdash; until the end of the 1990s homes typically cost between two and three times household after-tax income, they now cost closer to five &mdash; but also because over time the loan became easier to pay off.

That isn&rsquo;t because mortgage rates were coming down &mdash; at times they were going up &mdash; it&rsquo;s because during our parents&rsquo; times wages (and prices) were climbing.

It meant that even if someone of our parents&rsquo; generation just squeaked through one of the bank&rsquo;s tests about their ability to make payments on a mortgage, a few years and lots of inflation and several big wage rises down the track those mortgage payments shrank compared to everything else.

Once, wage rises took care of repayments

Many of our parents paid off their mortgages early.

One way to look at this is that the bank&rsquo;s ability-to-repay calculators were set too harshly. They failed to account for future hefty wage rises and inflation.

It&rsquo;s probably also true that they were set more generously than they might have been in an implicit acknowledgement of what the assistant governor in charge of the Reserve Bank&rsquo;s economic branch Luci Ellis calls &ldquo;<a href="https://www.rba.gov.au/publications/rdp/2006/2006-12/global-trends.html">mortgage tilt</a>&rdquo;.

The former governor, Glenn Stevens, used another term, &ldquo;<a href="https://www.rba.gov.au/speeches/1997/sp-ag-081097.html">front-end loading</a>&rdquo;.

Mortgages were &lsquo;front-end loaded&rsquo;

When inflation was high, and as a consequence interest rates were high, wages that climbed rapidly with high inflation made the servicing burden &ldquo;most acute in the very early phase of a loan, falling over time&rdquo;.

On a graph (and the former governor presented a graph) the line showing payments as a portion of income tilts down over time.

In a world of lower inflation and interest rates, the tilt becomes flatter.

By now (Stevens published the graph in 1997) the line must be near horizontal.

If wage growth remains near the <a href="https://twitter.com/1petermartin/status/1399520798734389250/photo/1">record lows</a> the treasury is forecasting it will become scarcely any easier to make payments on a home loan over time.

Yet the banks are still handing out loans using the sort of formulas they used to.

If you get a loan you&rsquo;ll be assessed as being able to (just) make the payments as always, but you&rsquo;ll be denied the near certainty of being able to more easily meet the payments as time goes on.

Now, we retire mortgaged

This is a different from the risk you&rsquo;ll also run of today&rsquo;s ultra-low mortgage rates climbing (which banks do take into account in deciding whether to give you a loan).

The proportion of homeowners reaching retirement age while still paying off their mortgage has doubled in 20 years. Which might be why some banks ask for details of your super before granting you a loan. It isn&rsquo;t an idle inquiry.

Might things get better? Maybe, if we can get wages moving again.

Evidence given to Tuesday&rsquo;s post-budget Senate estimate hearing provides cause for hope, and despair.

Super hikes will make things worse

The budget forecasts for wage growth over the next four financial years are incredibly low &mdash; 1.5%, 2.25%, 2.5% and 2.75%

On Tuesday Treasury Secretary Steven Kennedy revealed that each would have been higher &mdash; 0.4 points higher &mdash; had the government not persisted with the five scheduled annual increases in compulsory superannuation contributions of 0.5% of salary starting in July.

The treasury believes each increase will slice 0.4 percentage points from wage growth, on the basis that employers, who are legally required to pay the contributions, will have to find the money somewhere.

It&rsquo;s the same conclusion reached by the government&rsquo;s <a href="https://theconversation.com/that-extra-youre-about-to-get-in-super-most-of-it-will-come-from-you-but-dont-expect-the-ads-to-tell-you-that-154723">retirement incomes review</a>.

It&rsquo;s cause for hope because it means that when those five increases stop (in mid-2026, or sooner if the government stops them mid-track) wages might be able to grow more strongly.

It&rsquo;s cause for despair because if the treasury is right, we are denying ourselves wage rises we could use in return for super we will increasingly use to pay down our mortgages.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/161873/count.gif?distributor=republish-lightbox-basic" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" width="1" z5zyoz6tp="" />

<a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a>

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/paying-off-a-home-loan-used-to-be-easier-than-it-looked-its-now-harder-heres-why-161873">original article</a>.

jordan_55689

Paying off a home loan used to be easier than it looked - it's now harder - here's why

<html><body>
Australian interest rates are currently at <a href="https://tradingeconomics.com/australia/interest-rate">historically low levels</a>. This fact, along with the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-04-14/imf-forecasts-big-coronavirus-growth-hit/12147818">economic uncertainty created by the coronavirus pandemic</a>, has left many wondering whether or not now is a good time to take out (or switch to) a fixed rate home loan. Fixed rate home loans are where your loan repayments will be charged at the same interest rate, usually for periods between 1 to 5 years.

There are both pros and cons of taking out a fixed rate home loan. 

Pros:

1. Your interest rate won’t go up if market rates increase 

This means that you’ll be charged less interest than a person with a variable rate home loan, giving you the opportunity to become <a href="/guides/how-to-secure-a-mortgage-free-lifestyle-sooner">mortgage-free sooner.</a> 

2. It can give you repayment certainty

Your repayments won’t change if market interest rates increase. A fixed rate loan can, therefore, be a good idea if your <a href="/expert-insights/buying/resetting-your-finances-during-covid-19-a-financial-coachs-guide">financial circumstances are likely to change</a>. For example, if you’re planning on starting a family or your job may be at risk due to the economic fallout of the coronavirus.

Cons:

1. Higher fees

A fixed rate home loan usually has higher fees than a variable-rate home loan.

2. Break fees

If you want to end your fixed rate home loan before the term expires, there will usually be ‘break fees’ involved. For example, a reason why you might want to end your fixed rate home loan is if you want to sell your home. Variable-rate loans, on the other hand, don’t have break fees.

3. Loan features and flexibility

Some fixed rate home loans limit your ability to make to do things such as:

<ul>
<li>making extra repayments</li>
	<li>
<a href="/news/the-difference-between-offset-and-redraw-mortgage-loans-that-are-right-for-you">redrawing money</a> on your home loan if you need to.</li>
</ul>
       However, variable-rate loans usually have more flexible features such as these.

Before you take out a fixed rate home loan, you should do all of the following:

1. Thoroughly research the market 

There are a huge number of home loan products and loan providers available in the Australian home loan market. If you don’t have time to research the market, you can use the services of a <a href="https://moneysmart.gov.au/home-loans/using-a-mortgage-broker">licensed mortgage broker</a>. 

In addition, if you are switching from a variable-rate home loan to a fixed-rate, it’s important that the benefits outweigh any costs. If you are unsure about this, you should obtain independent financial advice.

2. Understand the comparison interest rate

Lenders usually advertise two interest rates on their loan products: a nominal rate and a <a href="https://moneysmart.gov.au/glossary/comparison-rate">comparison rate</a>. The nominal rate is usually lower, but it doesn’t include the cost of loan fees and charges. The comparison rate, on the other hand, is higher but it does include the cost of most loan fees and charges. 

Always use the comparison rate when comparing loan products. Lenders in Australia are <a href="https://asic.gov.au/regulatory-resources/credit/credit-general-conduct-obligations/national-credit-code/">legally required to provide you with the comparison rate</a> before you take out a loan.

3. Negotiate loan fees and features

The Australian home loan market is highly competitive and lenders are always keen for new home loan business from applicants with good <a href="https://moneysmart.gov.au/managing-debt/credit-scores-and-credit-reports">credit ratings</a>. If you have a good credit history, you may be able to negotiate home loan fees and charges with lenders. 

There’s an old saying that ‘you don’t get what you deserve, you get what you negotiate’. If you don’t believe you have good negotiating skills, a mortgage broker can negotiate on your behalf.

 
It’s important to understand that paying off a home loan is a long-term financial commitment. Interest rates inevitably change over time and interest is the major cost associated with home loans. Even a small increase in interest rates can make a massive difference to the amount you’ll pay over the duration of a home loan. Hence, It is crucial that you consider the pros and cons of fixed rate home loans as well as their suitability for your current and future financial circumstances.

 
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vivian_48447

Precautions You Should Take Before You Sign up For a Fixed Rate Home Loan

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The community housing group SGCH has secured a $60 million loan from Australia's Clean Energy Finance Corporation (CEFC) to upgrade the environmental credentials of its existing housing stock and build an additional 200 homes.
The first of the new dwellings will be built in the Sydney suburb of Peakhurst.
It the first time the CEFC has funded residential property, chief operating officer Meg McDonald said. The CEFC is keen to further investment in the residential property sector.
Last November, SGCH secured a $61 million, three-year facility with Westpac Bank to build 275 houses in the Sydney metropolitan area for low-income key workers in sectors such as childcare. 
The latest funding permits SGCH to build better-designed dwellings in Peakhurst that will cost up five per cent more upfront, but which would repay that within five years.
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jchancellor-FAypfDUnLy

SGCH secures $60 million CEFC housing loan

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Has a family member or friend asked you to be a 'co-borrower' or guarantee a loan for them? Before you say yes, think carefully - you could lose not only your money, but valuable assets such as your house or car.
What is a guarantor or co-borrower?
Co-borrower
You are a co-borrower if you sign a loan with someone else.
In most instances both you and the other co-borrower are jointly and individually liable for the debt. If the person you borrow the money with is unable to pay their share of the loan, you will be responsible for repaying the full amount outstanding.
Guarantor
If a credit provider is not willing to give a loan to a person on their own, they may ask for a guarantee. If you sign a guarantee for a friend or family member, you are known as the 'guarantor' of the loan.
When you sign your name as a guarantor, you are legally responsible for paying back the entire loan if the other person cannot or will not make the repayments. You will also have to pay any fees, charges and interest. As a guarantor does you don't have the right to own the property or items bought with the loan.
Guaranteeing a loan could affect your future loans and credit report
You will need to tell your credit provider about any loans you are a guarantor for, when you apply for credit. They may take into account the loan repayments on the loan you have guaranteed when they assess your ability to repay a new loan. This may stop you getting a new loan even if the person who's loan you are guaranteeing is making the repayments.
You may end up with a bad credit record if you and the borrower can't pay back the guaranteed loan. The loan will be listed as a default or non-payment on your <a href="https://www.moneysmart.gov.au/borrowing-and-credit/borrowing-basics/credit-reports" target="_blank">credit report</a>, making it hard for you to borrow money for several years.
If you provide security, such as a mortgage on your home, to guarantee someone else's loan, you may not be able to use your home as security for your own loan. You may even end up losing your home if you don't pay out the guaranteed loan. 
You may also be made bankrupt by the credit provider. Even assets you haven't offered as security for a guarantee may then be sold to pay the outstanding debt. 
Think very carefully before guaranteeing a loan
Is there another way you could help without becoming a guarantor? For example, could you contribute to a deposit so that a guarantee is not needed? Consider how you will pay back the loan if your friend or family member can't. Can you afford the repayments? Do you have savings you can use or assets you can sell to pay the debt? If you do have to use your own money or assets to pay off someone else's loan, you could be risking your financial future. What about your relationship with the borrower if something goes wrong? It may be better to say 'no' now and avoid damaging your friendship. 
Case study: Connie guarantees a business loan for her son
Connie's family ran cafes for years until her late husband became too ill to work. Her son Leo grew up working for the family business, and Connie thought he could make a go of it. But she didn't know he had a gambling problem.
A few months after Connie guaranteed a business loan for him, Leo fell behind in his repayments. Then he was evicted from the cafe for not paying rent. She asked relatives to contribute to Leo's repayments but even with their help, there was not enough money to pay off the debts.
The bank and landlord contacted Connie to pay back what was owed. Connie is talking to the bank about repayment arrangements, including postponing enforcement proceedings, but is resigned to the fact she may have to sell the family home to pay off Leo's debts. 
Ask questions
Before you guarantee a loan, ask the credit provider the following questions.
Q. What type of loan am I guaranteeing?
Be very careful about guaranteeing a loan that has no specific payback time, such as an <a href="https://www.moneysmart.gov.au/borrowing-and-credit/other-types-of-credit/overdrafts" target="_blank">overdraft</a>. This kind of loan could potentially go on forever.
Q. What should I check if I am asked to guarantee a business loan?
Find out everything you can about the business. Ask for a copy of the business plan to understand how it intends to operate. It's also important to look at the business' financial state. For example, check past financial statements and speak to the business' accountant to make sure the company is in good financial health and has good prospects.
Q. Is the guarantee for a fixed amount of money, or is it for the total amount owing?
You are better off guaranteeing a fixed amount because you will know exactly what you owe. If you sign a guarantee for the total amount owing, you will be legally responsible for what the borrower owes now and in the future. This could include interest, fees, charges and penalties. If you think there has been an increase in the amount you agreed to guarantee without your consent, seek legal advice straight away.
Q. Exactly how much am I guaranteeing?
The guarantee should clearly describe how the amount of money you owe will be calculated if the worst happens and the borrower does not pay. If you are not comfortable with the amount, ask if you can reduce it.
Q. Do I have to put up assets as security?
If the loan is not for personal, household or domestic purposes, you may be asked to put up an asset such as your house as security. This means the credit provider can sell your house to pay the debt if the borrower defaults on their loan.
Q. What should the loan contract tell me?
Get a copy of the loan contract from the credit provider. It should tell you:
<ul>
<li>The amount of the loan</li>
<li>The interest rate, fees and charges</li>
<li>Whether the loan is secured (where the borrower has to put up an asset, such as their house, as security)</li>
<li>How long the borrower has to repay the loan</li>
<li>The amount of the repayments</li>
</ul>
Get legal advice
Never let a family member pressure or force you into signing anything. If a large amount of money is involved, talk with a lawyer or get <a href="https://www.moneysmart.gov.au/managing-your-money/managing-debts/free-legal-advice">free legal advice</a> so you understand the risks you are taking on. If you're feeling pressured, seek financial counselling - it's a free and confidential service. 
Challenging a claim
In certain situations, guarantors may be able to challenge a claim even though they have signed contracts.
You should get advice immediately if you:
<ul>
<li>Only agreed to sign through pressure or fear</li>
<li>Suffered from a disability or mental illness at the time of signing</li>
<li>Did not receive legal advice before signing and did not understand the documents or the extent of the risk you were taking on; for example, you thought you were guaranteeing a certain amount but a much larger amount is now being claimed</li>
<li>Believe the credit provider or <a href="https://www.moneysmart.gov.au/glossary/b/broker" target="_blank">broker</a> used unfair tactics, or tricked or misled you</li>
</ul>
What to do if a personal relationship breaks down
A breakdown in your personal relationships affects every part of your life, including your finances. If you were a guarantor or co-borrower for your ex-partner, you may be liable for their debts if they can't or won't repay their loan.
In most cases, you won't be able to get out of loan contracts you made in the past, but speak to a lawyer or get <a href="https://www.moneysmart.gov.au/managing-your-money/managing-debts/free-legal-advice" target="_blank">free legal advice</a> about where you stand. 
Stop and think before agreeing to be a co-borrower or to guarantee someone's loan. If they cannot or will not pay off the loan, you will be responsible for the debt. Take the same care that you would if you were taking a loan out for yourself.
For more information from ASIC, click <a href="https://www.moneysmart.gov.au/borrowing-and-credit/home-loans" target="_blank">here</a>.
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po-LsXgBTHBmX

ASIC's tips for parents financing home purchases for their children

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Kirsty Lamont from <a href="https://mozo.com.au/home-loans" target="_blank">Mozo.com.au</a> tells us the five numbers that you need to know following Tuesday’s record low rate cut.
3.98%
This is now the lowest variable home loan rate on the market from Loans.com.au. If this is a lot lower than your current rate it might be time to consider refinancing.
3
Three year fixed rates is where we are seeing home loan rates lower than the best variable. The popular 3 year category is being led by HSBC, offering a 3.95% rate.
$11,160
This is how much interest you could save by keeping your repayments the same and not reducing your repayments in line with a 0.25% discount passed on by your lender – if they’ve passed it on of course! (Based on a $300,000, 80% LVR loan over 25 years)
9
So far, only this many lenders have passed on Tuesday’s full 0.25% rate cut. This means seven have passed on part of the cut and a further 63 have yet to make a decision on whether to pass on a discount. 
$7.8 million
This is how much lenders profit with each day that a potential 0.25% rate cut is not delivered to customers. 
Source <a href="https://mozo.com.au/home-loans" target="_blank">Mozo.com.au</a>
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