Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<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/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Mortgages

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Guest observation
With another result of 'no change' at the Reserve Bank cash rate meeting for December, it may seem like the property market is becoming a tedious 'waiting game', however recent analysis suggests many possible outcomes could surface in the few years ahead.
Of the 37 experts surveyed in finder.com.au's December Reserve Bank Survey, 69% predicted that house prices would continue to rise throughout the New Year, despite most experts betting on the cash rate to rise.
Interestingly, just three experts were forecasting the cash to fall next year but since last week, six of the 37 have adjusted their predictions, also forecasting the cash rate is likely to take a tumble.
However, many are still expecting the cash rate to come back up to a new normal level of around 4%, so rates won't stay low for long, even with another rate cut.
For potential buyers, it makes sense to dive into property before they become more expensive, and it's also worth considering locking in a fixed interest rate if you're worried about the higher costs down the track.
Provided you've got a repayment strategy to suit, securing a property with an LVR (loan-to-value ratio) over 80% (so a deposit of less than 20% of the property value) could be feasible, given the forecasted property price hikes. However, the widening dialogue around rate movements can be confusing and even daunting, especially for those new to the market. With some five-year fixed rates on the market for less than 5%, securing a good deal until the rate argument settles could be a viable option for confused potential property owners.
finder.com.au's lowest variable rates allowing 95% LVR:
<ol>
<li>
IMB Introductory Variable Rate Home Loan: 4.66% p.a. This loan allows you to save interest in the first year by offering a discounted rate. You could either reserve these savings as a safety buffer, should interest rates move, or use them to curb the steep $767.74 combination of application and legal fees. 
</li>
<li>
Pacific Mortgage Group Construction Home Loan: 4.72% p.a. Pacific Mortgage Group has very few fees, none of which are ongoing, so you can rest assured knowing that although you won't be stung with extras, especially if you're planning to borrow more than 80% LVR and capitalising lenders mortgage insurance (LMI) into your loan. However, if you plan to build using this loan, there are loading fees around the construction period of the loan which vary depending upon the constructions undertaken.</li>
<li>
Aussie Optimiser Plus Variable Rate: 4.84% p.a. This loan also allows for a 100 percent offset account, so you'll have even more room to move as it is then possible to negate some of the interest charged on your loan. 
</li>
</ol>
finder.com.au's lowest 5-year fixed rates:
<ol>
<li>
UBank UHomeloan: 4.93% p.a. This is the lowest five-year fixed rate currently on finder.com.au, and it has some restrictions including that you will be unable to make extra repayments or redraw funds from this account. If you can meet the strict guidelines, you've nailed a good deal that will shelter you from interest rate movements for the next five years. 
</li>
<li>
Commonwealth Wealth Package: 4.99% p.a. This is one of the Commonwealth Bank's many home loans that can be taken out as part of its Wealth Package, which entails a discount on their advertised rates. However, this loan does have a limit on offset accounts per withdrawal and deposits. There's also a $375 annual package fee. 
</li>
<li>
NAB National Choice Package: 4.99% p.a. The package fee is again probably the biggest additional consideration to this loan, as it sits at an annual cost of $395. With that being said, this loan allows redraws, extra repayments and an additional discount on the advertised rate. As long as you don't want this loan for construction purposes, it's a notable contender in the five-year fixed space.</li>
</ol>
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mhutchison-SWt6qigzDX

A volatile year ahead for the property market with rates expected to change

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Comparator websites are under investigation by the corporate and consumer watchdogs.
The Australian Competition and Consumer Commission reported in early December that while more than 70% of people who research products online in the sectors it is investigating use a comparator website, most are sceptical of the results as they don’t understand how the websites make money or the motivations of the operators.
The ACCC is looking into the benefits and risks to consumers of using websites that compare multiple service providers in the private health insurance, telecommunications and energy sectors. The Australian Securities and Investments Commission is reviewing websites that compare financial services such as mortgages.
Property Observer compared the remuneration models of several mortgage comparator websites. Here’s what we found.
<ul>
<li>Comparethemarket.com.au</li>
</ul>
This site only compares the products of participating brands, which include each of the major banks but only a few of the smaller banks and non-bank lenders.
They say: “If you decide to buy a product or service from one of our participating providers, [Compare the Market] may receive a commission from that provider. This commission is paid by the product or service providers and there is no extra cost to you for our service. “It’s important to note that our comparison tool is not influenced in any way by our commercial arrangements with our participating providers. We work hard to provide you with great options for your needs.”
<ul>
<li>Finder.com.au</li>
</ul>
Makes money by selling some ad space on its sites and through referral.
They say: “When you click through to or apply with a financial institution, broker or retailer from our website, that provider will pay us a small referral fee for sending you to there. We don't mark up the products just for listing them on our website, and we don't get ongoing or trailing commissions.”
<ul>
<li>InfoChoice.com.au</li>
</ul>
Charges fees to some institutions and advertisers which are negotiated on a case-by-case basis.
Some businesses pay InfoChoice subscription fees for using its data. Or, it may charge fixed cost development, licensing and hosting fees for the use of its financial calculators.
InfoChoice also receives fees from product providers for product advertisements on its website. The advertising fee may be based on a cost per impression or fixed monthly sponsorship fee. Referrals from the InfoChoice website may also earn the comparator a cost per click, a cost per application or a cost per lead for enquiries. It can also take a commission on referrals to third party advice providers such as mortgage brokers.
<ul>
<li>Mozo.com.au</li>
</ul>
Like Finder.com.au, Mozo makes money from advertising and referrals.
They say: “Mozo makes money in two ways. We sometimes charge a fee to financial institutions when we transfer potential customers to them, for example if you click on ‘Go to Site’ once you've found a great deal using Mozo. In some instances we link through to financial institutions without charging a fee in order to provide a service to you. We also host a small amount of advertising on the site to keep you up to date with the latest offers.”
<ul>
<li>Ratecity.com.au</li>
</ul>
Makes money from display advertising and by generating qualified leads for financial institutions. Leads are created when consumers visit the financial institution’s website via a link from the RateCity website. RateCity gets paid either for the click, or for transacting with the financial institution by opening an account or applying for a product online for instance.
It may also receive referral fees from brokers or financial advisers when the consumer requests that their details are passed on.  
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zfielding-GvX3Uq9KTa

How mortgage comparison websites make money

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A total of 68% of Australians are ‘very comfortable’ with their home loan, according to the latest ING DIRECT Household Financial Wellbeing Index.
Comfort with mortgages/long term debt, credit cards/short-term debt and household bills is currently at an all-time high.
The index found that 31% of households are mortgage free, while 44% are paying down their loan ahead of time.
A high level of comfort with short-term debt, such as credit cards, was noted with 5.48 out of 7 on the index recorded, or the highest level since 2010.
Of the households surveyed, 18% have a personal loan, with the average household owning 1.8 credit cards and 15% of households not having a credit card.
New South Wales was the most comfortable of all the states, followed by Western Australia and Victoria. All three were up on their second quarter 2014 results. South Australia and Queensland have dipped since the second quarter.
Head of third party distribution at ING DIRECT, Mark Woolnough, said that it’s good news that financial wellbeing is rising.
“Almost half of all homeowners are making the most of the current low interest rate environment and are getting ahead with their home loan repayments, which is a good strategy that will help them to maintain their financial health well into the New Year,” said Woolnough.
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jduke-EHk3XBmHkn

Majority of mortgage holders comfortable with home loan: ING DIRECT

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Australian mortgage providers had $1.25 trillion worth of housing loans on their books at the end of September, up 9% compared with the year before, according to the latest data from the Australian Prudential Regulation Authority.
This included $85.4 billion of new loans issued in the September quarter, which was 11.9% more than the value of new mortgages issued in the same quarter of 2013.
Major banks held just over $1 trillion of the residential loans, having lifted the size of their mortgage books by 8.7% over the year.
Other domestic banks increased their total loan books by 15% to $135.3 billion at the end of September. APRA noted that this jump in mortgages was partly due to the conversion of eight credit unions and one building society to banks during the year. However, separate research by mortgage broking network AFG, the AFG quarterly Competition Index, shows non-major banks did increase their market share of people who refinanced their mortgages.
Foreign subsidiary banks held $54.9 billion worth of residential mortgages, up 5.8% from September 30, 2013, APRA reported. 
In total, there were 5.2 million housing loans outstanding at the end of September, APRA’s data shows. The average balance was $239,000, up from $232,000 in September 2013.
Two thirds of the loans outstanding – $825 billion worth – were to owner occupiers. This was 7.6% more than at the same time in 2013. The remaining $425.3 billion worth of home loans were to investors, an increase of 11.9% compared with the year before.
Australian lenders also had $225.5 billion in commercial property loans at the end of September 2014, down by 0.4% from June 30, 2014 but 6.4% more than in September 2013, APRA figures show.
Commercial property located within Australia accounted for 83.1% of all commercial property exposures. Most of the properties were offices and retail property, which represented 30.3% and 22.4% of all exposures respectively.
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Australian lenders holding 9% more home loans than a year ago

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The Australian Prudential Regulation Authority (APRA) released their quarterly Authorised Deposit-taking Institution (ADI) Property Exposures data for September 2014 last week. 
The data always provides a valuable insight into current and historic mortgage lending by domestic ADIs and this quarter’s release was no different.
<img class="aligncenter size-full wp-image-4041" src="https://blog.corelogic.com.au/wp-content/uploads/2014/11/Chart-11.jpg" alt="Chart 1" width="500" height="180">
Based on the value of all outstanding mortgages by households to Australian ADI’s, there was $825.0 billion outstanding to owner occupiers (66.0% of all housing loans) at the end of September 2014 and $425.4 billion to investors (34.0%). 
Over the 12 months to September 2014, the total value of outstanding mortgages to owner occupiers has increased by 7.6% compared to an 11.9% rise in outstanding credit to investors.  This represents the greatest annual increase in owner occupier lending since June 2012 and the greatest rise in investor lending since December 2010. 
Much like other data received more regularly, the chart indicates that there is significantly more momentum in the investor lending space than that for owner occupiers where growth is more moderate.
<img class="aligncenter size-full wp-image-4042" src="https://blog.corelogic.com.au/wp-content/uploads/2014/11/Chart-21.jpg" alt="Chart 2" width="500" height="182">
At the end of September 2014, a record high 36.8% of loans outstanding had an offset facility, up from 34.2% a year earlier.  Also a record high was the 36.8% of all outstanding mortgages which were interest-only, up from 34.6% a year earlier. 
Just 0.2% of all outstanding mortgages were reverse mortgages and 2.7% were low documentation which was down from 3.6% a year earlier and at a record low proportion.  Other non-standard loans accounted for just 0.1% of all outstanding mortgages. 
It seems that more and more mortgagees are accessing offset accounts in order to reduce the interest payable on their mortgages and maximise repayments of the principal while interest rates are so low.  The data also indicates that a high proportion of lenders are accessing interest-only mortgages which seems somewhat counterintuitive at a time when interest rates are so low.
<img class="aligncenter size-full wp-image-4043" src="https://blog.corelogic.com.au/wp-content/uploads/2014/11/Chart-31.jpg" alt="Chart 3" width="500" height="181">
The average balance on all outstanding mortgages at the end of September 2014 was $238,700.  The average balance has increased by 3.0% over the past year. 
Loans with an offset facility ($284,600) and interest-only mortgages ($308,400) have much higher average outstanding loan balances. 
It is interesting to note that the annual growth in average outstanding loan balances has been much more moderate for mortgages with an offset and interest-only mortgages at 2.0% and 2.1% respectively. 
Encouragingly, the data also indicates that outstanding balances are reducing for low documentation and other non-standard loans as they become less common.  Over the past year the average balance has fallen by -3.1% for low-documentation loans and by -6.5% for other non-standard loans. 
With mortgage rates low and fewer of these loan types being written it seems those that have these types of loans are continuing to pay down these mortgages.
<img class="aligncenter size-full wp-image-4044" src="https://blog.corelogic.com.au/wp-content/uploads/2014/11/Chart-41.jpg" alt="Chart 4" width="500" height="179">
Turning the focus to new loans written over the September quarter, 62.6% of the total value of new lending was to owner occupiers and 37.4% was to investors. The proportion of new lending to investors has fallen from a record high of 37.9% in the June 2014 quarter. 
Based on this data it suggests that growth in demand for both owner occupier and investment lending may have peaked. 
Although after having trended lower over the previous two quarters, the annual change in new owner occupier and investment lending bounced in September, recorded at 6.9% and 21.4% respectively.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
<img class="aligncenter size-full wp-image-4045" src="https://blog.corelogic.com.au/wp-content/uploads/2014/11/Chart-51.jpg" alt="Chart 5" width="500" height="181">
Over the September 2014 quarter, 0.7% of new loans approved were low-documentation, 42.5% were interest-only, 0.1% were other non-standard loans, 43.2% were third party originated loans and 3.5% were loans approved outside of serviceability. The 42.5% of new loans which were interest only was down from a record high of 44.0% over the previous quarter. 
 The data also seems to reflect the slowing of growth in investment demand, remember that interest only loans tend to be (but not always) reflective of lending for investment purposes.  
The ADIs seem to be increasing the usage of their broker channels with the 43.2% of loans originated by third parties the highest proportion since June 2008.  
With 3.5% of new mortgages approved outside of serviceability over the September 2014 quarter, this was down from a record high 3.7% over the previous quarter.
<img class="aligncenter size-full wp-image-4046" src="https://blog.corelogic.com.au/wp-content/uploads/2014/11/Chart-6.jpg" alt="Chart 6" width="500" height="180">
Looking at the loan to value ratios (LVR) of loans written over the September 2014 quarter,  25.2% of new loans had an LVR of less than 60%, 41.8% of loans had an LVR of between 60% and 80%, 20.9% had an LVR of between 80% and 90% and 12.1% had an LVR of 90% or more. 
The 12.5% of new loans with an LVR of more than 90% is the lowest proportion since June 2011.  The 25.2% of mortgages with an LVR lower than 60% was the highest proportion in a year. 
This falling proportion of loans above 90% LVR suggests there are proportionally less high-risk mortgages being written.
The data indicates that overall interest-only lending is continuing to rise however, new lending of this type has eased of late. 
Investment lending remains high and continues to ramp-up however, the rate of growth in new lending to investors does appear to have slowed.  Keep in mind that the December data will probably tell us much more given it encapsulates more of the spring selling season. 
Furthermore, after the RBA flagged that they and other regulators are looking at ways to cool investor exuberance with an announcement expected in December we may actually see a run on investor lending over the coming quarter.
It is of course important to remember that although investment lending has ramped up sharply over the past year, there is little to suggest that lending to investors is more risky than lending to owner occupiers.  Bill Evans provided some insight into Westpac’s investment lending late last week.  He noted:
<ul>
<li>Compared to owner–occupier applicants, investment applicants are older (75% over 35 years); have higher incomes and higher credit scores.</li>
<li>65% of investment loan customers are ahead on their repayments and 90+ days delinquencies are 0.37% compared to 0.47% for the full housing portfolio.</li>
<li>Westpac has an interest rate buffer approach to lending linking loan approvals to serviceability at a rate at least 180 basis points above the standard mortgage rate (5%).</li>
<li>All investment loans are full recourse and specific policies apply to holiday apartments and single industry towns.</li>
</ul>
<img class="aligncenter size-full wp-image-4047" src="https://blog.corelogic.com.au/wp-content/uploads/2014/11/Chart-7.jpg" alt="Chart 7" width="500" height="315">
Our concern about the high level of investment lending remains over the fact that investors are targeting the residential property asset class because of its superior returns.  While these returns remain superior demand is likely to persist. 
The concern then arises when other investment classes start to show superior returns will these owners exit the residential property class or remain in it for the long-term? 
As the above chart shows, investor activity is heavily concentrated within the capital city inner-city unit market.  Were many investors to exit the market at a similar time in search of superior returns that could have some serious repercussions for the inner city unit market and potentially the wider housing market too.
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Will investors desert residential property when returns start to dry up?

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The Big Four banks continue to dominate Australia’s mortgage market, but when looking at refinancing figures it’s clear that the non-major lenders are taking an increasing share.
According to comparethemarket.com.au, an analysis of AFG’s latest data found non-major lenders responsible for 32.1% of refinanced mortgages in the last 12 months. When looking at all mortgages this figure dipped to 26%.
Comparethemarket.com.au’s Abigail Koch said that home owners who are looking to refinance are increasingly willing to consider small lenders, as opposed to first home buyers who stick to the mainstream lenders.
“Where first home buyers likely lack confidence and prefer the perceived safety of the ‘Big Four’, Australians refinancing, having gone through the mortgage process previously, are more comfortable using smaller lenders if it means they can secure a larger loan, lower rate or lower fees. As a result, they may be more willing to compare a variety of providers,” she said.
It seems the refinancing space offers opportunities for non-major lenders.
“Refinanced mortgages comprise just over a third of all AFG-introduced mortgages annually, it is a very substantial portion of the overall market. Additionally, data also shows that the percentage of first time buyers is steadily declining across every state in Australia,” she said.
First home buyers were noted as more likely than investors to opt for a non-major lender, with 29.1% of first timers opting for a non-major in the last 12 months, compared to 23.5% of investors. Of course, it’s worth remembering that investors are a major part of the market, and their numbers are substantially higher than first timers at present.
In fact, while first time buyers accounted for 10.2% of mortgages brokered by AFG, investors totalled 39.1% of business.
Investors may consider the big four as they have “greater financial muscle” when it comes to financing multiple properties, explained Koch.
“The GFC took its toll on smaller lenders. Consequently, customers looking to acquire a mortgage felt more comfortable going with the brands they had known their whole lives, as they felt they would be a safer bet,” she said.
“Now that the economy has stabilised, first time buyers are taking notice that the ‘smaller guys’ may have greater agility than the majors in terms of reducing interest rates and ongoing fees, which has helped them to steal a greater market share."
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First home buyers stick to Big Four as refinancers show confidence in non-majors

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We are currently in the most competitive variable home loan market since the GFC, according to the director of Mozo.com.au, Kirsty Lamont.
Lender Heritage Bank has just dropped their variable home loan rate down to 4.39%, which according to <a href="https://mozo.com.au/home-loans" target="_blank">Mozo</a> analysis of RBA average home loan data, is a rate not seen for average home loans since the 1950s.
"Fierce competition has well and truly returned to the market as smaller and online lenders cut rates to record-low levels to compete with the majors,” Lamont told Property Observer.
She urged borrowers to look beyond the big four banks, with savings available of $2,064 per year based on a $300,000 loan over 25 years. 
"You may have to be prepared to do some of the leg work yourself but that could earn you some solid savings on your home loan,” she said.
Here are the top five loans currently available:
<a href="/images/2014/11/25/loans-nov-25-one.jpg" target="_blank"><img src="/images/2014/11/25/loans-nov-25-one.jpg" alt=""></a>
*Comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years
Source: <a href="https://mozo.com.au/" target="_blank">Mozo.com.au</a> as at 24 November 2014
Mozo’s data, which looks at 551 loans from 79 providers, records 62 providers offering variable rates less than 5%, with an average variable home loan rate of 5.22%. The average variable rate of the big four is 5.38%.
These average rates have been based on LVRs of up to 80% on a $300,000 loan amount.
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The top five variable loans currently available: Mozo

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The CEO of Mortgage Choice, Michael Russell, has announced his retirement.
In a statement, Mortgage Choice Limited chairman Peter Richie advised that the retirement would occur after the completion of the 2015 financial year, and the “identification of an appropriate successor”. The date isn't completely set for the June 2015, as Property Observer understands that he will stay until the successor is hired.
An official Mortgage Choice statement expresses that he is as determined as ever to lead the company to another successful and profitable financial year.
"Michael joined Mortgage Choice determined to enhance the business' profitability and introduce a financial planning arm and, during his tenure, he has managed to do just that. Having completed the job he set out to do, Michael feels the time is right to retire from his role as CEO."
Russell has held senior executive positions at ANZ Banking Group and National Mutual Royal Bank, with more than 30 years experience in financial services.
Russell joined Mortgage Choice in 2009 as CEO and implemented and developed two three-year strategic plans. Richie notes that this “enabled the franchise group to grow and prosper through the aftermath of the GFC", and that now he will assist Ritchie with identifying and transitioning a replacement CEO.
At a Mortgage Choice media luncheon last week, Russell discussed the risks to retirees of reverse mortgages, quipping “we always assume seniors are incapable of making decisions for themselves”, saying that none of the major banks offer this product.
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Mortgage Choice CEO Michael Russell announces retirement

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Consumers and industry professionals rate Australia's mortgage market positively, according to a Genworth survey released today.
However, the survey did point to declining first home buyer loans, according to Bridget Sakr, Genworth chief commercial officer.
"While the overall health of the market was seen as good, the survey suggested that first home buyers comprise 10.5% of all lender originated loans and 18.9% of all broker originated loans which supports arguments that this group is finding it increasingly difficult to enter the housing market," said Sakr.
The Genworth survey suggested first home buyers are almost twice as likely to use an intermediary like a broker, rather than directly approaching a lender, than other borrowers.
Although the market overall was rated highly, 36% of consumers surveyed were concerned about consumer housing debt, while lenders surveyed were less concerned.
"While our Home Grown report suggests that the market is in good health, characterised by robust competition and a supportive cash rate setting, concerns around market access for first home buyers highlight the value of low deposit options such as Lenders Mortgage Insurance," said Sakr.
Supermarkets were seen as the market players with the most potential to influence Australia's mortgage industry.
"In last year's research, lenders felt that online operators and superannuation funds were most likely to have the largest impact on the market," Sakr noted.
"In 2014 we have seen a change in this situation, with 37% of lenders now believing that market entry by supermarket groups would most likely have the largest impact on the market while at the same time downgrading the potential influence of online competitors and superannuation funds," she said.
The majority of respondents also believed the current overnight cash rate of 2.5% is appropriate, with the cash rate, government policy and lender funding mix seen as having the greatest influence on the state of the mortgage market.
"Lenders and brokers agreed that APRA's [Australian Prudential  Regulation Authority] current regulatory position strikes the right balance between responsible lending and access to housing credit," said Sakr.
"They also believe that current levels of consumer debt are not a cause for concern.
"While it is acknowledged that rate rises or a correction in property prices could change this assessment, industry experts predict stable interest rates over the next year and believe that factors such as population growth and supply constraints may put a floor underneath property prices over the short term," she said.
More than 1,200 respondents were surveyed for the 2014 Home Grown: Mortgage Industry Perspectives report.
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Annual survey gives Australian mortgage market a clean bill of health

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We've all marvelled at the amount of information on the internet and the speed with which we can compare available products.
Nowhere has this access to information been better exploited than in financial services, where you can use websites to make cheap share trades, find the best priced mortgage and get travel insurance that saves you heaps.
But although e-commerce is now normal, Australians still distinguish between low cost convenience transactions, and high value strategic decisions. For most people there's still a divide between the ease of technology and the need for advice.
But how do you decide whether to buy online or use a broker or adviser?
One criterion might be size and importance.
Australians can search for mortgages online and apply over the phone. However, the Mortgage and Finance Association of Australia has found that of the growth in the mortgage market in the year to June 2014, 61% was driven by brokers. That was a 32% increase on the 2013 figure. Clearly, Australians like interaction with an expert when they take on their biggest debt.
The opposite is the case when applying for credit cards and operating bank accounts. For these transactional interactions we're comfortable to use the internet and call centres to administer our daily banking.
Consumers also transact directly online with their super and their share portfolios. This seems to work best with users who have good knowledge of the options and understand the choices.
Insurance is another matter. If you've been insuring your car for years, a quick price comparison on the internet can prepare you for buying more insurance over the phone or online at renewal time.
However, many insurances are strategic parts of life planning, and they need expert advice.
Even simple insurance such as home and contents has to be managed so you're never underinsured, and you aren't paying for things you don't need and being excluded from the cover you do need.
More than half of retail insurance premiums are written by advisers and brokers, probably because Australians think about insurance once a year and they need someone who thinks about it every day.
The advantage you get with an adviser is obvious in life insurances which include death cover, total permanent disablement (TPD), trauma and income protection. You can buy tax-friendly life policies in your super fund. But when you use an independent adviser, you can buy cover for your circumstances, with tailored inclusions and exclusions.
Life insurance issuers rarely have more than one top product line and premium at a time, with deals changing to showcase different products. Some insurers are strong in some occupations. An independent adviser knows this. Luckily, it isn't a choice between the internet or advice. The trick is to use both, according to their strengths and your needs. What do you favour? Internet or advice? I'd love to hear what you think.
Mark Bouris is executive chairman of wealth management company <a href="https://www.ybr.com.au" target="_blank">Yellow Brick Road</a>, which sells financial advice and home loans.
You can contact Mark on <a href="https://www.twitter.com/markbouris">Twitter</a>.
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