<a href="https://www.apartments.com.au/developers/draycon">Draycon Building</a> is nearing completion of Boutique Chevron Island, a 42-apartment development on the northern end of Chevron Island at 17–19 Parneno Street, with a limited-time offer of fully furnished apartments available.

Now more than 90 per cent complete, <a href="https://www.apartments.com.au/buildings/boutique-chevron-island-17-19-parneno-chevron-island-qld-4217">Boutique</a> has been shaped by one of the Gold Coast’s most tightly held island addresses, where riverfront outlooks and walkable access to Surfers Paradise converge.

For Draycon Building Managing Director Howard Dabit, the appeal of the site was immediate.

“I knew it was a good site as soon as I saw it,” Dabit said.

“The position and location on the north end of <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>, the way the river swirls around the site basically from the north to the east, it feels like the site is surrounded by the water. The height that we’ve got and the aspect looking north is beautiful. Eighty per cent of the apartments are looking north so they get that drenching sunlight coming in.”

[smartcode_project:default project_id=89709 project_image_fid=360922]

That northern orientation places the development within a stretch of Chevron Island defined by open river aspects and skyline views, while remaining embedded in the suburb’s established village setting.

Chevron Island has increasingly drawn owner-occupiers seeking centrality without the intensity of high-rise beachfront living. Positioned at the geographical centre of the Gold Coast, the island offers direct access to both the beach and key cultural infrastructure while retaining a neighbourhood-scale character.

Connected by bridge to Surfers Paradise, Chevron Island offers walkable access to beaches, riverfront parklands and a revitalised foreshore boulevard animated by walkers and cyclists throughout the day. The Pacific Ocean is only minutes away, reinforcing the suburb’s dual river-and-surf identity.

At the same time, Thomas Drive forms the spine of the island’s village life, delivering cafés, wine bars, casual dining and everyday services within easy reach. Independent grocers, wellness operators and neighbourhood retailers contribute to a community atmosphere that remains distinct from the vertical scale of the beachfront.

[smartcode_project:default project_id=89709 project_image_fid=360915]

In the opposite direction, the Green Bridge links directly to HOTA – Home of the Arts – placing galleries, performance venues and parklands within walking distance. Weekly markets and major exhibitions draw visitors from across the region, while residents return to a quieter residential pocket at day’s end.

Public transport, including nearby bus routes and the G:link light rail corridor along the coastal spine, strengthens connectivity north and south. Griffith University, the Gold Coast University Hospital precinct and established private schools such as The Southport School are all within a short drive.

Ongoing investment across Surfers Paradise, HOTA and the broader Southport corridor has elevated amenity while preserving Chevron Island’s comparatively low-rise residential character. It is this balance, walkable village atmosphere paired with metropolitan-scale infrastructure, that continues to differentiate the suburb from higher-density beachfront precincts.

Boutique comprises just 42 residences, designed to maximise river and skyline outlooks within this tightly held island setting.

Boutique Chevron Island is slated for completion in April 2026, with prices starting from $1,220,000.

[smartcode_project_cta:default project_id=89709]

Joel Robinson

Draycon Building’s Boutique Chevron Island places 42 residences at the heart of the Gold Coast

Sydney developer <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a> has secured planning approval for a $300 million residential development in Lindfield, marking the company’s second project on Sydney’s North Shore and its first on the Upper North Shore.

Located on Beaconsfield Parade and designed by DKO Architecture, the state significant development comprises three buildings of up to 10 storeys and will include 399 residences, including 59 affordable homes and 40 adaptable homes.

Residences will range in size from one, two and three bedrooms, with two-bedroom apartments accounting for over 60 per cent of the product make-up. Residents will have access to a broad suite of amenities, including a wellness area, indoor and outdoor recreational spaces, a pool, a gym, a community room and a golf simulator.

In line with Deicorp’s long-standing focus on creating transit-oriented communities, the project is located just 260 metres from the Lindfield Train Station, reinforcing its role in delivering well-connected housing close to established infrastructure, retail and local services.

The inclusion of affordable and adaptable housing supports greater diversity within the local market, while the mix of apartment types responds to demand from downsizers, young professionals and families seeking access to the Upper North Shore.

Deicorp Founder Fouad Deiri OAM said the approval represents an important milestone for both the company and the suburb

“This approval allows us to deliver well-designed homes in a location that is already supported by strong transport and community infrastructure," Deiri said.

"Our focus is on creating places that integrate into their surroundings and provide long-term value for residents, and the broader Lindfield community. Being within walking distance of the station ensures this project supports sustainable growth in the right locations."

Across its portfolio, Deicorp currently has 4,703 apartments under construction, playing a leading role in shaping connected, liveable communities across Sydney.

Its expanding portfolio of Metro-linked developments includes Tallawong Village, <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> in Five Dock, <a href="https://www.apartments.com.au/new-apartments/hyde-metropolitan-sydney-133-141-liverpool-street-sydney-nsw-2000">Hyde Metropolitan</a> in Sydney CBD, <a href="https://www.apartments.com.au/new-apartments/falcon-alexander-crows-nest-8-alexander-street-crows-nest-nsw-2065">Falcon &amp; Alexander</a> in Crows Nest and Showground Village, Castle Hill.

Deicorp purchased the Beaconsfield Paradise site last year. Construction is scheduled to commence in Q2 of 2026 and will be completed in 2029.

Deicorp expands portfolio to nearly 5,000 apartments with Lindfield project

In a joint venture with The Trump Organization, Australia developer Altus Property Group has announced plans to bring a Trump International Hotel &amp; Tower to the Gold Coast, marking the first Trump-branded project in Australia.

"Trump International Hotel &amp; Tower, Gold Coast is our first official project in Australia and reflects our unwavering commitment to delivering world-class luxury experiences in iconic locations around the world," Eric Trump, Executive Vice President of The Trump Organization, said.

"This development exemplifies the Trump brand’s dedication to quality, sophistication, and unmatched service, and we are thrilled to bring this vision to the vibrant Gold Coast community."

The 91-storey building, which will become the tallest in Australia at 335 metres, will feature a&nbsp;285-room luxury hotel bearing the trademark Trump logo. It will also include 272 luxury residential apartments, a three-level podium with an exclusive Beach Club, and over 3,400 sqm of premium commercial, retail, and dining space, revitalizing the central Surfers Paradise precinct.

“Trump International Hotel &amp; Tower, Gold Coast will be a truly unique offering in the Australian market, bringing the prestige and allure of a world-class luxury brand,"&nbsp;Altus founder and chief executive David Young said.

"Altus Property Group is proud of its track record in delivering landmark developments across Australia, and our expertise ensures this project will be an outstanding success."

Trump Hotel heads for the Gold Coast to become Australia's tallest building

More than a century after the Corrimal Coke Works first opened in 1912, the industrial landmark that helped shape the suburb is being reinterpreted as a walkable residential neighbourhood, with Stage One of <a href="https://www.apartments.com.au/new-apartments/the-works-stage-one-27-railway-street-corrimal-nsw-2518">The Works</a> now underway at 27 Railway Street.

For 102 years, the site was central to <a href="https://www.apartments.com.au/developments/corrimal-nsw-2518">Corrimal</a>’s economic and social identity before operations ceased in 2014. Rather than erasing that legacy, developer Legacy Property has embedded it into the masterplan, retaining and reinterpreting elements such as the iconic 1912 brick chimney and sections of the original C1 Coke Oven Battery, alongside the adaptive reuse of the former powerhouse building.

Stage One will introduce 181 apartments across low-rise buildings, offering predominantly two and three-bedroom residences with completion targeted for mid-2027. The scale and configuration reflect a deliberate focus on owner-occupiers, targeting those seeking a lower-maintenance home in a prime location within the northern suburbs of Wollongong.

[smartcode_project:default project_id=143415 project_image_fid=359833]

Apartments have been designed to maximise natural light and cross-ventilation, with floor-to-ceiling glazing extending living areas onto generous balconies. Engineered timber flooring, induction cooktops and 900mm ovens in larger residences support everyday functionality, while two interior palettes allow buyers to tailor finishes to their preferences. The material selection draws on a restrained coastal language, intended to connect homes to their surroundings rather than compete with them.

The Works forms part of a broader 18-hectare masterplan that will ultimately deliver around 550 dwellings, new parks, and a heritage precinct celebrating the site’s past. More than seven hectares are dedicated to open space, including Southern Park and a Village Green with community gardens and recreation areas. The creek corridor is being rehabilitated with 150,000 native plantings, restoring biodiversity to the site and softening landscape.

[smartcode_project:default project_id=143415 project_image_fid=359841]

Positioned adjacent to Corrimal Station and within walking distance of Corrimal Town Centre, the precinct places daily essentials, rail connections and local retail within easy reach. Wollongong CBD, including the hospital, university and entertainment venues, sits approximately 6.5 kilometres to the south.

For buyers more familiar with North Wollongong, Corrimal offers a different proposition: a well-established coastal suburb framed by beaches to the east and the escarpment to the west, with a strong sense of local identity shaped in part by the former Coke Works. The Works seeks to reinforce that identity by creating a connected, walkable neighbourhood between coast and escarpment, rather than a standalone apartment complex.

Sustainability underpins the development approach. The Works is targeting Wollongong’s first 5-Star Green Star-rated community, with water-sensitive urban design, recycled materials and energy-efficient buildings integrated across the masterplan. For residents, these measures provide not only environmental benefits but also reduced operational costs and future resilience.

[smartcode_project:default project_id=143415 project_image_fid=359842]

With construction commenced and display materials available to view, prospective buyers can now engage more directly with the project’s vision, reviewing floorplans, material selections and the broader masterplan in detail. For many local homeowners weighing a move, the opportunity to experience how heritage, landscape and contemporary design intersect may help bridge the gap between familiarity and the next chapter.

As Stage One progresses toward its mid-2027 completion, The Works represents a significant chapter in Corrimal’s evolution, transforming a site that once powered local industry into a walkable residential precinct designed for its next generation of residents.

[smartcode_project_cta:default project_id=143415]

Legacy Property’s The Works reimagines Corrimal’s century-old Coke Works

When it comes to developing in Melb​ourne's Bayside region, <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> knows exactly what buyers want.

With a longstanding presence in the area and a string of sell-out projects, Lowe Living consistently delivers developments that are as sought-after as their predecessors.

Their latest instalment is in <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a><a href="https://www.apartments.com.au/developments/hampton-east-vic-3188">&nbsp;East,</a> the same postcode where they have previously delivered Hampton Hill and Oceano. The developer-builder recently commenced construction on its newest project,&nbsp;<a href="https://www.apartments.com.au/new-apartments/marella-hampton-31-35-alicia-street-hampton-east-vic-3188">Marella</a>, a collection of 32 apartments just five minutes from the beach.

Site acquisition is paramount to success. Lowe Living rarely brings a building to market that isn’t within walking distance of essential amenities, whether it be the beach, a prominent retail strip, or a train station. Marella is no exception, located at its Alicia Street address, less than a kilometre from the retail heart of Hampton Street and Hampton Station.

[smartcode_project:default project_id=146197 project_image_fid=358495]

Equally important to Lowe Living is the architecture.

For Marella, they appointed <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, who explains that the architectural vision was to create a contemporary reinterpretation of the Californian bungalow, a style that’s iconic to Hampton’s heritage.

"By borrowing, abstracting, and reinterpreting elements of this quintessential style, such as strong datum lines, articulated columns, exposed structures, and roof tiles, our design strikes a balance between modernity and familiarity," says Cera Stribley.

"This approach ensures that the development is not only visually appealing but also contextually sensitive, resonating with Hampton's existing architectural landscape."

[smartcode_project:default project_id=146197 project_image_fid=358499]

The building features terracotta brick, soft cream masonry, and exposed metal detailing, giving it a tactile presence that is intended to weather gently over time.

Internally, the focus on lasting quality continues, with two and three-bedroom residences anchored by sculptural stone kitchen islands, natural light, and clearly defined transitions between living, dining, and outdoor spaces.

The layouts have been carefully designed. Open-plan zones extend to private balconies, with light-filled interiors and generous kitchen proportions, supported by Miele wall ovens, induction cooktops, and integrated fridge-freezers. These are not small apartments rebranded as luxury; they have been designed at scale, with ample storage, hotel-style entry access, and secure basement parking provided as standard.

[smartcode_project:default project_id=146197 project_image_fid=358492]

At the uppermost level, Marella’s Signature Collection penthouses offer city or bay views, large entertaining terraces (some with outdoor spas), and elevated finishes, including fully wrapped stone kitchen benches and a Liebherr wine fridge.

Flexible room arrangements allow for a fourth bedroom or secondary living space, sought-after by both empty nesters who want the space when family visits and families with older children.

[smartcode_project:default project_id=146197 project_image_fid=358498]

A residents’ lounge on the ground floor reinforces the project’s small-community feel. With a fireplace, private dining area, and adjoining terrace, it’s one of several shared spaces that balance amenity with privacy and scale.

Construction has commenced, with completion expected in early 2027.

[smartcode_project_cta:default project_id=146197]

Lowe Living continues Bayside legacy as Marella rises in Hampton

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.

 
</body></html>

vivian_48447

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

<html><body>
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.
</body></html>

jchancellor-FAypfDUnLy

SGCH secures $60 million CEFC housing loan

<html><body>
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>.
</body></html>

po-LsXgBTHBmX

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

<html><body>
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>
</body></html>

loan

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

loan

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News