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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Many economists are tipping the official cash interest rate will stay on hold for several months to come.
Financial market indicators also suggest there are strong expectations of interest rate stability, with a small chance of further cuts.
As late as Thursday 1 May, just days before the latest RBA cash rate announcement, the ASX 30 Day Interbank Cash Rate Futures May 2014 contract (which shows market expectations of an RBA interest rate change) was trading at 97.505. That indicates financial market participants thought there was a 98% chance that interest rates would be left on hold and a 2% chance of a cut to 2.25% at today’s RBA Board meeting.
For mortgage holders, low interest rates are providing opportunities to save considerable sums on their home loans.
Several lenders have cut mortgage rates since the start of this year, while the RBA has left the cash rate untouched at 2.5% since August 2013.
At least seven lenders have cut mortgage rates on their variable loans, according to Finder.com.au. The comparison website found Yellow Brick Road, ANZ, Bank of Queensland, Citibank, Homeloans, HSBC and Westpac had all cut their variable rates since January 1. At the end of April, <a href="https://loans.com.au/">Loans.com.au</a> was advertising an ongoing variable rate of just 4.49% on its Dream Home Loan, Finder.com.au reported.
However, <a href="https://finder.com.au/" target="_blank">Finder.com.au</a> money expert Michelle Hutchison says three-year fixed rates are still lower on average than variable rate home loans.
The RBA’s indicator rate for a three-year fixed rate mortgage dropped to 5.2% in March from 5.25% in February, the latest RBA statistics show. The average three-year rate available to consumers is a little lower, at 5.11%, according to Finder.com.au.
History shows lenders typically pre-empt movements in the official cash rate with their fixed rate home loans, so by the time the RBA starts lifting rates, the fixed mortgage rates available to borrowers have already reached their bottom and started to trend higher (See chart).
<img src="/images/2014/05/02/zoe-may-2-one.jpg" alt=""> 
Source: RBA
“If you're worried about interest rates rising in the next few years it might be time to consider locking in a fixed rate,” Hutchison says.
Property Observer asked Finder.com.au to crunch the numbers on the cost over the next four years of taking out a fixed rate home loan now, compared with taking out a variable rate loan.
"The average three-year fixed rate is 5.11% while the average variable rate is 5.39%,” Hutchison says. “If variable interest rates increased back to normal levels of around 7% in four years, borrowers could be better off fixing.”
For this example, we assumed that the average variable interest rate available to consumers of 5.39% would remain in place for 12 months. After that time frame, we assumed interest rates would rise by 0.25 basis points every six months for remaining three years.
We compared that variable rate loan to a mortgage with the average three-year fixed rate of 5.11%. At the end of the three years, we assumed the interest rate for the fixed rate mortgage would revert to the same variable rate as the variable loan in the example: so 6.64% after three years, and then lifting to 6.89% for the last six months of the four year period.
Both sets of figures were calculated based on a loan with an initial size of $300,000.
Results
According to Finder.com.au’s sums, the total cost over four years of the variable loan above was $93,246.
The total cost for the three-year fixed loan, reverting to the average variable loan rate at the end of the fixed period, was $88,732.
In this example, the three-year fixed rate loan would cost $4,514 less than the variable rate loan.
Of course, the results will vary if these assumptions on interest rate movements are off the mark.
Plus, there are other considerations when deciding between a fixed and variable rate mortgage, such as the flexibility to make additional repayments with the view of paying off the loan more quickly, which is usually only possible with a variable rate loan.
We’ve also excluded the affect of fees, and have ignored any other features that might be available with one loan but not the other.
In general, if it’s cost alone that you’re looking at, fixing the rate might still make sense. 
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zfielding-GvX3Uq9KTa

Analysis: Is it worth fixing your home loan?

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GUEST OBSERVATION
Over 40% of mortgages in Australia are sold by mortgage brokers, not by their manufacturers - an issue that has the CEO of Australia’s fifth largest bank, Suncorp, <a href="https://www.theaustralian.com.au/business/suncorp-chief-patrick-snowball-lashes-dominance-of-big-four-banks/story-e6frg8zx-1226881287464" target="_blank">arguing</a> the sector is skewed towards the big four banks.
There are two distinct components of the mortgage market: a retail market with a wide variety of sellers, and a wholesale market.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/46335/width668/jm9wyrsb-1397454304.jpg" alt="">
Value of housing loans advanced by lender. Australian Securitisation Forum
The four big manufacturers of mortgages in Australia are the big four banks. One of the key issues for the <a href="https://fsi.gov.au/" target="_blank">Murray inquiry</a> into the financial system will relate to competition, or the lack thereof, in the manufacturing of mortgages. Does it matter that some 90% of mortgages are manufactured by four producers?
There are a number of ways of answering this.
Oligopolies reign…
The first is that there are many industries in Australia with fewer than four major manufacturers of goods and services. Telephone services, domestic airlines, energy supplies, postal services, cars, steel etc. all come quickly to mind. In fact, most Australian industries are characterised by a small number of manufacturers. Any industry with economies of scale, like banking, seems likely to be relatively concentrated given the size of the local market.
The second is to ask whether the concentration is temporary or entrenched.
There were a lot more manufacturers of mortgages before the financial crisis. Most of them were funded not from deposits but by securitising their mortgages and obtaining funding from the wholesale markets. During the crisis this market contracted sharply, mainly because of problems in the US market for securitised product, which made the business model unviable. The government stepped in under Treasurer Swan and subsidised securitisation by the smaller banks during the crisis to enable them to stay in the business. This was a subsidy from taxpayers directed exclusively towards the smaller banks.
As the securitisation market returns, as it should because there were no problems with the market in Australia, then this will return to be a secure funding source for the smaller banks. The rebuilding of market sentiment will allow the smaller banks to re-enter the market as manufacturers of mortgages.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/46337/width668/qx6vgx59-1397454478.jpg" alt="">
Residential Mortgage Backed Securities by issuer type. Australian Securitisation Forum
Macquarie Bank too has shown a willingness to depart from the mortgage market when times are difficult but to re-enter aggressively as it has recently. Again this is another indicator that the market concentration is high but the market remains contestable.
Price competition
The third broad concern is whether there is price competition for mortgages at the wholesale level. At the broadest level the Reserve Bank has concluded:
"The available evidence suggests that the average spread to the policy rate on variable-rate mortgages in Australia is within the range of those in other advanced economies" - RBA submission to the Murray inquiry.
So the overall level of mortgage margins does not appear to be out of line with prices in other countries.
The remaining issue is whether there is price competition between the four manufacturers, and whether market share changes when price changes. The normal test used in industrial economics is to ask whether an incumbent would lose significant market share if it raised prices by 10% above the level of its competitors.
With mortgage rates currently around 6%, the question is whether a bank would lose significant market share if it offered a standard variable rate of 6.6%, while the other manufacturers had prices around 6%. There really seems little doubt that the high price would cost an incumbent significant market share, suggesting that no provider really has market power in mortgages. Just by cutting its mortgage list price by 0.10 to 0.15 of 1%, NAB increased its market share significantly during its break-up marketing campaign.
Since the financial crisis the big four banks have become the principal manufacturers of mortgages in Australia. They market some mortgages directly, some through second tier brands, and some through brokers. Their leading position in manufacturing since the crisis is mainly the result of the wind back of second tier banks which were funded through securitisation in the wholesale market, and partly because of the changed status of St George and Bankwest when they were taken over by majors.
Such a high level of concentration is not unusual for an Australian industry. Nor is it clear that prices are out of line. The situation is also likely to prove temporary as re-emergence of the securitisation market will enable alternative manufacturers to fund their lending, and new vigorous competitors like Macquarie have already re-entered the market.
Rodney Maddock is Vice Chancellor's fellow at Victoria University and adjunct professor of economics at Monash University.<img src="https://counter.theconversation.edu.au/content/25587/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Rodney consults to a range of financial sector institutions. Some of his current research on financial regulation is funded by the Centre for International Financial Regulation. 
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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rmaddock-AxiRakmDz9

Looking for a home loan? Choose from one of these four options…

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In the current low interest rate climate, many first home buyers may be confused about the best option for their first home loan.
Choosing your home loan means striking a balance between your varying priorities. Are you after low fees? Or are you more interested in being able to capitalise on interest rate cuts? Maybe you’re happy to pay a bit extra now for protection against future rate hikes.
To help you with the daunting task of choosing your first home loan, Property Observer has four key tips:
<ol>
<li>
THINK LONG TERM Be prepared for your life circumstances to change over the course of your mortgage. You may be employed full time with a steady income, but there are lots of things that can affect your ability to make repayments further down the line. Babies, break ups and getting the boot at work can all make a serious dent in your financial plans. Think realistically about your life five or 10 years down the track, because you are about to make one of the biggest financial commitments of your life. 
</li>
<li>
FINANCE FIRST Before you’ve found your dream home, work on finding your dream mortgage. Speak to a mortgage broker prior to purchasing a home and look into securing a home loan pre-approval – while it isn’t a total guarantee that you will be able to finance your house, it’s as close as you’ll get. Getting pre-approval can help real estate agents take you seriously and give you an idea of your budgetary constraints. 
</li>
<li>
VARIABLE OR FIXED? With interest rates at a record lows, fixed rates have definite benefits. A fixed rate mortgage will lock your interest rate in and protect you from future rates hikes for a set period, usually three years. Fixed rates are also generally at competitive levels at the moment. However, there are many other factors beyond interest rates will determine what the best loan is for you. You may benefit from low monthly fees, a flexible loan arrangement or discounts for bundling your accounts with a single lender. Don't be afraid to shop around. A good mortgage broker will help you decide what is best for you. Once you’ve decided on a loan, it’s wise to revisit your loan with your broker on a yearly basis to see if it’s still the best arrangement for you. 
</li>
<li>
KNOW YOURSELF Choosing the best home loan is all about full disclosure and being honest with yourself about your finances. Many lenders offer loan repayment calculators that will help you determine how much you can afford to pay each month. While frugality generally pays, you may find that you just can't live comfortably without a certain level of extra spending money each month, so leave yourself a little room to move if you can. And remember, your financial decisions will determine what loans you have access to, especially now that your credit history includes more detailed information including when you pay your bills. </li>
</ol>
Shopping for your first home is an exciting time, and it's hard to reserve quite the same amount of enthusiasm for mortgage shopping. But taking the time to choose the right home loan can save you a lot of time and a lot of money down the track.
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jrichardson-uRX5hFdKfN

First home buyers: four tips for choosing a home loan

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A deposit, regardless of the value of the property, can be a hefty sum that you might not have on you straight away. For those dipping their toes into particularly competitive markets, when the cash isn't readily available, a deposit guarantee might suit you.
However, it's easier to describe a deposit guarantee as what it is not, rather than what it is. It's not a replacement for your actual deposit, and it's also not attainable if you can't afford the deposit in the first place.
Instead, it's an option for those who are perhaps asset rich but cash poor, or whose cash is being used elsewhere.
For instance, you're still waiting for the settlement on a property that is being sold, or you have a fixed term deposit account that you'd rather hold onto while you wait until settlement. Instead of using a cash deposit, you can use a deposit guarantee as an alternative.
Another benefit is for first home buyers who may not be able to afford the deposit without an applicable government grant, that cannot be accessed until settlement. While proof of eligibility for the grant will need to be provided, this is certainly a highly advertised way of accessing these funds early.
You may have seen a deposit guarantee referred to as a 'Deposit Protect Bond' (St George Bank and Westpac) or even a Deposit Bond (ANZ).
The market for deposit guarantees was established in 1989 by Deposit Power, of CBL Insurance Ltd, a company that operates today. Deposit guarantees are legal in every state and territory, and Deposit Power notes that they have assisted in over 750,000 transactions. They refer to the product as a Deposit Power Guarantee.
What are the limits?
The Commonwealth Bank notes that they are usually available, in short term form, for up to six months - and they note they're particularly useful as deposits for properties you win at auction.
There are also long term versions available from six to 48 months, that they note suit better for those purchasing off the plan - so that capital will not be caught up in the meantime. This means you don't have your cash held up, unable to be used by yourself for other short-term investments, while the property is built.
Unconditional loan approval is usually required to get a deposit guarantee, and you will usually only be allowed up to 10% of the purchase price, often to a total property value limit determined by the individual provider, such as $750,000 (Commonwealth Bank).
Applications tend to be fairly quick - provided the right paperwork, there can often be as short as a one working day turnaround.
Can everyone use them?
Not everyone can have access to a deposit guarantee. You still need to pay the full purchase price at settlement, so you must be able to afford it. A deposit guarantee is not a substitute for having enough funds to purchase, and you will need to prove that you can afford it.
You will be required to bring along a copy of the Contract of Sale for the property you are interested in, a copy of a loan approval, evidence of the funds that will be used (such as, a copy of the contract of sale from another property) and a copy of any grant letters.
Some deposit guarantee offerings exclude different types of property, usually rent to buy and private finance, however some allow and some disallow properties such as commercial and vacant land to be granted a deposit guarantee. It's worth shopping around to check eligibility before determining on a provider. ANZ, for instance, requires the property to be zoned residential.
Similarly, different asset tests are undertaken. For instance, Long Term Guarantees from Commonwealth Bank require substantial equity in a current property or property portfolio. Short term guarantees require evidence of funds to complete the purchase and, usually, an unconditional loan approval.
They can usually be obtained in trusts, individual names or as a corporate entity, including first home buyers and retirees. However, non-Australian citizens cannot apply.
Other worthwhile considerations
While deposit guarantees have become increasingly mainstream, they're still not completely well known. It is at the discretion of the vendor as to whether they accept a deposit guarantee. Adjustments may need to be added to the Contract of Sale, for instance Aussie Home Loans recommends a 'Suggested Special Condition' is inserted, amending the deposit provisions to allow a guarantee to be used.
It's also worth noting that providers usually receive a commission for providing you a deposit guarantee, and it's not free for you. There is usually a fee associated with being given access to this product (although if unused within a time period, refunds regularly apply), however it tends to be around a one off fee of a few hundred dollars for smaller deposits. Ask about the fees, and always consider the longer term impact in advance. Some banks ask for an initial fee, and then an ongoing fee that may be calculated similar to interest. This can vary dramatically from lender to lender.
Also ask about the provider of the deposit guarantee. For instance, ANZ uses QBE Insurance (Australia) Ltd.
It's also worth bearing in mind that if you pull out of settlement last minute, against the contract, you will still be required to pay the deposit back to the provider of the deposit guarantee. Treat the deposit guarantee as you would your own cash.
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What is a 'deposit guarantee'? Property investment terms explained

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Peter Brian Cockroft, 65, plead guilty to fraud in circumstances of aggravation after he mortgaged the home of his 92 year old father, who had been hospitalised with dementia.
The Courier Mail reports that Cockroft mortgaged his father’s home for $565,000 in December 2009. Cockcroft, who wrongly obtained his father’s signature, did not first gain approval from his father’s trustee before he mortgaged the house.
The former company director and financial worker used $540,000 of the money he obtained to invest in the now collapsed Capital Growth International Club.
According to The Courier Mail, Cockroft told authorities that the money was intended to pay for renovations to his father’s home. However the court heard that it was at the time “highly improbable” that the elderly Keith Cockroft would ever return home, given his condition. He passed away at the age of 94 in 2011.
Judge Brendan Butler QC stated that Peter Brian Cockroft “took advantage of an aged person lacking capacity to make his own financial decisions.”
This is not Cockroft’s first jail sentence. He was jailed for two months in 1997 after allegedly misappropriating $75,000.
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Brisbane man jailed for three years after mortgaging sick dad’s home

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With inflation below market expectations, HSBC Bank Australia expects the Reserve Bank of Australia (RBA) to leave the cash rate at 2.50% for this month.
This year’s Quarter One Consumer Price Index (CPI) figures showed inflation running at 0.55% quarter on quarter and at 2.65% year on year.
According to HSBC, the inflation results suggest that the RBA is likely to keep the cash rate on hold for this month. But the bank expects that the next change to the cash rate will be an increase, given that inflation is in the upper half of the RBA’s 2-3% target band.
The overnight cash rate is currently at 2.50%, a record low. According to HSBC economist Paul Bloxham, it is unlikely that the RBA will make any further cuts to the cash rate, with strong indicators of economic growth and “the housing market booming.”
HSBC’s Bloxham expects the RBA’s next rate hike as soon as Q4.  According to the bank, lifting momentum in the domestic economy is offsetting current declines in mining investment.
In its latest RBA Observer report, HSBC also states that despites media rhetoric, the bank does not expect the May federal budget to be as tight as some anticipate. The report cites a commitment by the government to increase spending with the paid parental leave scheme and to reduce taxation by abolishing the carbon and mining tax. 
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RBA expected to keep rates on hold for now: HSBC

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While seven lenders have dropped 20 variable home loans by up to 0.17% this year, according to Finder.com.au, their money expert Michelle Hutchison warns that they aren’t always all they’re cracked up to be. In fact, this discount could cost you more if you don’t look beyond the figure.
A discount can mean good things for those looking for a better deal, however Hutchison notes that borrowers could be missing out on thousands of dollars.
"It's extremely important for borrowers to compare home loan deals, read between the lines, and be wary of discounted home loan rates,” she notes.
"Some lenders, including the major banks, market their home loans based on a discount off their standard variable rate. But the rate you end up with could be much more than other home loans in the market.”
Yellow Brick Road executive chairman, Mark Bouris, said that shopping around is crucial as they might not be as attractive when looking beyond the rate.
“People visit their bank thinking their loyalty is going to get them the best home loan rate, or they're attracted to a special offer, oblivious to the fact that the discount rate might not be competitive in the long run,” he said.
Bouris has regularly <a href="/expert-insights/finance/look-beyond-the-discount-rate-to-find-the-true-cost-of-your-mortgage-mark-bouris">urged borrowers to look beyond the discount to find out what it will really cost them</a>. He noted that advertisers often just advertise the discount, rather than the actual interest rate itself, which can make people think they are getting a better deal than they are.
Always look at the true costs, and have all the numbers at hand before you make a decision.
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Investor warning: Look closely at discount interest rates before switching

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The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services licence of Banksia Mortgage Limited.
Banksia Mortgage is the mortgage provision arm of Victoria’s Banksia Financial Group, a non-bank lender which <a href="/news/victorian-non-bank-lender-banksia-securities-collapses">collapsed in 2012</a>.
The Supreme Court of Victoria made orders authorising Banksia Mortgages to wind up the Banksia Mortgage Fund in August last year. The portfolio of funds was sold in December 2013, with $85 million distributed to 1,200 investors.
Banksia Mortgages applied to ASIC to cancel its financial services licence earlier this month to cut costs and allow the transferal of money to another Banksia subsidiary, Banksia Securities limited.
According to ASIC, most Banksia Mortgage Fund investors have received 100% of their money plus interest, with about 108 still to be paid the entirety of their money. Banksia Securities Limited investors have so far received 80 cents to the dollar from receiver McGrathNicol.
The Banksia Financial Group’s $650 million collapse has affected thousands of investors, mostly in regional Victoria. Prior to its collapse, its equities to loan ratio stood at 3.6%, meaning that the lender held $3.60 for every $100 of loans. 
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ASIC cancels AFS licence for mortgage arm of Banksia Financial Group

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There are always many things that are crucial for a prospective property buyer to ask a mortgage broker, particularly when choosing who is going to help them to get the best loan.
If you haven’t already read <a href="/expert-insights/finance/how-to-pick-the-best-mortgage-broker">our guide to choosing a mortgage broker</a>, then that is the best place to start.  
Here are five important questions to ask your likely mortgage broker candidate:
<ol>
<li>
How do you get paid? The majority of mortgage brokers work on a commission basis, however there has been an increase in ‘fee for service’ in this industry. It’s important to understand that, while brokers are there to act in your best interest, the rate of commission paid by a lender has caused waves over the past two years. A professional and ethical mortgage broker will act in your best interest, regardless of what extra commissions are on offer. Don’t be afraid to ask about any conflicts of interest to see what they say. 
</li>
<li>
Who is on your lending panel? Not every mortgage broker has access to all lenders and banks. The Mortgage and Finance Association of Australia explains that each broker has to obtain accreditation with the lender is order to sell their products. This is called their ‘panel of lenders’. It is representative of how many products they have to select from and, therefore, your chance of getting the best product. The reasons for allowing a broker to have access to a lender’s products are varied, however you don’t want to start out with someone who cannot offer you a range of options. 
</li>
<li>
What is your average client like? Are they specialists in a specific area, and do you need them to be? If you’re an unusual case, such as a multi-property investor who is self-employed and looking to purchase a difficult block, then your needs are going to be different to an upsizer who has saved up a hefty amount to get into their next property. Similarly, first home buyers may want someone familiar with first timers and knows to explain different terms in layman's language. Remember that most experienced mortgage brokers should be able to apply their skills to a range of situations - so ask them specifics about how they might deal with your loan, and any issues they foresee arising. 
</li>
<li>
What are your licence details? Ensure legality, always. This will help protect you to some extent. The broker should have an Australian Credit License and they should display this number on official paperwork, or when asked. Check this through ASIC, and look for any misdemeanours. To get a credit license they need to have a criminal check. You will also want to check for professional indemnity insurance. 
</li>
<li>
Can you describe to me how you’ve managed to get a difficult deal across the line? Hearing their experiences first hand, and asking specific questions, can be a great help for any property buyer. If you approach difficulty in achieving a loan, then you want to know you’re in safe hands. This will also help flag how experienced they are, as well as if they are engaging in anything untoward.</li>
</ol>
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Five questions you must ask your mortgage broker

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Weaker than expected inflation figures for the March quarter, released last week, have given economists confidence that the Reserve Bank of Australia will leave interest rates on hold for at least a few months to come.
The official cash rate has been at a record low of 2.5% since August last year. Throughout that time, the mortgage managers’ basic variable rate – which approximates the average of interest rate available to borrowers – has been constant at 5%. But there are many home mortgages available that offer interest rates below 5%.
The tables below list some of the cheapest variable interest rate loans in the market for owner occupiers (current as of April 24, 2014).
<table style="width: 375px; height: 194px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="102">Company</td>
<td valign="top" width="117">Product</td>
<td valign="top" width="109">Comparison rate</td>
<td valign="top" width="104">Headline rate</td>
<td valign="top" width="76">Offset facility?</td>
<td valign="top" width="85">Redraw facility?</td>
</tr>
<tr>
<td valign="top" width="102">Loans .com.au</td>
<td width="117"> Dream Home Loan</td>
<td width="109">4.51%</td>
<td width="104">4.49%</td>
<td valign="top" width="76">Yes</td>
<td valign="top" width="85">Yes</td>
</tr>
<tr>
<td valign="top" width="102">UBank</td>
<td width="117">UHome Loan</td>
<td width="109">4.62%</td>
<td width="104">4.62%</td>
<td valign="top" width="76">No</td>
<td valign="top" width="85">Yes</td>
</tr>
<tr>
<td valign="top" width="102">Yellow Brick Road Wealth Management</td>
<td valign="top" width="117"><a href="https://direct.ratecity.com.au/home-loans/yellow-brick-road/rate-smasher/apply/new?source=canstar.com.au" target="_blank">Rate Smasher</a></td>
<td width="109">4.69%</td>
<td width="104">4.68%</td>
<td valign="top" width="76">No</td>
<td valign="top" width="85">Yes</td>
</tr>
<tr>
<td valign="top" width="102">Bankmecu</td>
<td width="117">Basic Variable Special</td>
<td width="109">4.69%</td>
<td width="104">4.69%</td>
<td valign="top" width="76">No</td>
<td valign="top" width="85">Yes</td>
</tr>
<tr>
<td valign="top" width="102">iMortgage .com.au</td>
<td width="117"><a href="https://direct.ratecity.com.au/home-loans/imortgage/essential/apply/new?source=canstar.com.au" target="_blank">Essential</a></td>
<td width="109">4.71%</td>
<td width="104">4.69%</td>
<td valign="top" width="76">No</td>
<td valign="top" width="85">Yes</td>
</tr>
<tr>
<td valign="top" width="102">State Custodians</td>
<td width="117">Breathe Easy Offset</td>
<td width="109">4.75%</td>
<td width="104">4.84%</td>
<td valign="top" width="76">Yes</td>
<td valign="top" width="85">Yes</td>
</tr>
</tbody></table>
Sources: Canstar, Ratecity.com.au, Finder.com.au, Infochoice.com.au, lenders’ websites.
The loan to value ratio (LVR) is the loan amount relative to the value of the property. For example, if a borrower takes out a $300,000 loan to buy a $400,000 property, the LVR is 75%.
Comparison rates
Results are sorted by comparison rate rather than the headline interest rate because the comparison rate includes fees and charges which vary from loan to loan, so it better reflects the cost of the mortgage.
Comparison rates are calculated using a formula governed by the Uniform Consumer Credit Code that standardises factors such as the loan amount; loan term; repayment frequency; and fees such as ongoing account-keeping charges, establishment fees, valuation fees, mortgage documentation fees and settlement fees.
The comparison rates used in these examples are based on a $150,000 loan repaid monthly over 25 years. Results will vary for other loan sizes, terms and repayment frequencies, or select specific features to include.
Fixed loans
Several fixed rate loans are also available with rates below 5%. The three listed below are just some of the products on offer.
Loans.com.au has two-year and three-year fixed rate mortgages with comparison rates of 4.59% and 4.68%, respectively. Those loan rates are based on $150,000 loans with 25-year terms, and are available to both owner-occupiers and investors borrowing up to 90% of the property’s value.
Pacific Mortgage Group has two, three and five year mortgages with a comparison rate of 4.75%. Those loans are available for owner occupiers or investors with loans up to $2 million, borrowing up to 75% of the property’s value over between five and 30 years.
UBank is offering a three-year fixed rate mortgage with a comparison rate of 4.83%. It’s available for loan sizes between $100,000 and $1 million, for people borrowing up to 80% of the property’s value over 30 years.
Tips on shopping around
When using comparator websites – such as Ratecity.com.au, Finder.com.au and Mozo.com.au – be aware that unless you can specify the details of the loan you wish to take out, the results may not exactly reflect what you will be able to access.
For example, the Yellow Brick Road Rate Smasher mortgage (see table) is only available when the loan amount represents no more than 70% of the property’s value: that is the loan to value (LVR) ratio is no more than 70%. For other LVRs, different rates may apply.
Different types of loans are available to investors compared with owner occupiers, while self-employed people may find they are only able to access low-documentation loans, which tend to have higher interest rates.
Specials may be offered to some groups but not others, or may be available for a limited time only. So check fairly regularly for new deals if you have been looking for a property for some time.
Also, be aware that some comparison websites have relationships with only some of the lenders in the market so you may be missing the best deals if you refer to only one source.  
When picking a loan, it’s a good idea to look beyond the interest rate and consider whether there are mortgage features that you might be able to exploit to reduce the borrowing cost over the life of the loan.
Holding emergency savings in an offset account, for example, can save significant sums over time. This is because the balance, for the purposes of interest calculations, is accounted for as if you had paid that amount off the loan principal.
Online calculators are available that can help you work out how much the savings would be. For example, Westpac’s Home Loan Offset Calculator shows that if you had a $300,000 mortgage that charged a rate of 5%, you would pay $226,581 in interest over 25 years. If you held $30,000 in an offset account against that same mortgage, you would save $63,505 over the life of the loan and repay the debt three years sooner.
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