Brisbane-based builder-developer <a href="https://www.apartments.com.au/developers/bpg-developments">BPG Developments</a> has secured approval for its $250 million Newstead apartment tower.

The building, at <a href="https://www.apartments.com.au/new-apartments/16-22-maud-street-newstead-qld-4006">16-22 Maud Street</a>, will have 103 apartments across the 15-level building which will be crowned with a rooftop wellness facilities.

Residents will range from expansive two-bedroom residences, through to several penthouses on level 15. There will be 1,380 sqm&nbsp;dedicated to wellness-inspired amenities including shaded outdoor dining nooks, a fire pit, barbecue area, sunset lounge, gym, yoga deck, magnesium lap pool, sun deck, a sauna, steam room, and cold plunge pool.

BPG put together the 2,430 sqm super-site combines three separate titles – a vacant warehouse, an electrical &nbsp;wholesaler and an industrial shed, which were acquired in two separate transactions over a 12 month period. &nbsp;

<img alt="BPG Developments secures development approval for $250 million Newstead project" data-entity-type="file" data-entity-uuid="d007d4fb-9c44-4e54-b79e-50b68711ebbd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Final%2012_Podium%20Plaza%20View_r.jpg?VersionId=w6zql5hPjAp3j1..ZTCaYLzN65Ora8Z2" />

BPG was founded by industry veterans Nick Parr and Glen Williams. Parr said the project feels like a "coming home of sorts" for the pair, as they've both spent&nbsp;both spent the majority of their lives living in Brisbane's inner north. &nbsp;

“I lived just up the road in Teneriffe for most of my childhood," Parr said.

"We saw this site as an opportunity to deliver a timeless project in arguably Brisbane’s most popular suburb, where &nbsp;the standard for luxury design and amenities is incredibly high."

Parr believes Brisbane is in a bit of a "sweet spot" currently, in that&nbsp;construction prices have stabilised and demand has continued to climb which means the market is tightening up.&nbsp;

“The Brisbane market is unique in that there is no shortage of sites with existing development approvals, the issue is around the availability of builders who can deliver such projects. We are one of the few builder-developers who can build our own projects at scale &nbsp;so we are able to move quickly into delivery mode which gives confidence to our purchasers.” &nbsp;

Williams said they are proud of the project both&nbsp;in the sense of the significance of the site, but also in the quality and timelessness of the design. &nbsp;

“At BPG Projects we are conscious to prioritise quality over volume, so we tend to &nbsp;approach one project at a time," Williams said.

“For us we are motivated by creating a lasting legacy in our projects, so working with Plus &nbsp;Architecture to realise this vision has been a rewarding journey.” &nbsp;

BPG has appointed MOTIV to handle the sales and marketing of the new tower, which is expected to launch early next year. MOTIV Founder Carly Cottam said the project epitomises everything Newstead is about.

"Newstead is a huge success story in the revitalisation of Brisbane, and as a result it’s now one of the most popular inner suburbs, characterised by its exceptional urban design and wellness-driven lifestyle," Cottam said.

“We know this market values flexibility in floorplates, abundant storage and really liveable &nbsp;kitchens and interiors. That’s why designing an entire building around the owner occupier market with 100 &nbsp;percent of the floorplates representing two or three-bedroom residences mean this project is primed to appeal to the right audience.” &nbsp;

BPG completed Sable Palm Beach on the Gold Coast in 2019, and has plans for more developments in the suburb, as part of their $500 million development pipeline.

Joel Robinson

BPG Developments secures development approval for $250 million Newstead project

With three projects currently in market in Elizabeth Bay and Mosman, two of which are under construction and completing next year, apartment developer Toohey Miller is expanding its new development pipeline across Sydney.

<a href="https://www.apartments.com.au/developers/toohey-miller">Toohey Miller</a>, led by Nick Couloumbis, has filed plans for <a href="https://www.apartments.com.au/new-apartments/oxford160-160-oxford-street-paddington-nsw-2021">Oxford160</a>, 44 new apartments across a nine-storey building on Oxford Street in Paddington. It will have 12 apartment designated as affordable housing as per the Housing SEPP 2021 mid-rise reforms which trigger increased height limits, and street-level retail spaces.

The vision for the project is to create a "welcoming and family-friendly place to live with a mix of quality and affordable homes to support the Paddington community at different life stages."

Designs prepared by Smart Design Studio outline a contemporary, articulated streetwall along Oxford Street, stepping back at the upper levels to mitigate bulk and improve visual integration with the local character. A new laneway will improve pedestrian connectivity to Shadforth Street, while communal open spaces are integrated at both ground and rooftop levels.

<img alt="Oxford160" data-entity-type="file" data-entity-uuid="0d6e77ed-8c25-4c52-a82d-dd076c66c777" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-01%20at%209.52.46%E2%80%AFAM.png?VersionId=hjYcxIWIDOn7JWeom6RzIz7MWc1VG6HF" />

According to the Urban Design Supporting Letter prepared by architect and urban designer Matthew Pullinger, the new scheme “represents a contextually sensitive, responsive and high quality renewal of the site and the broader urban landscape”.

Pullinger said there are a range of benefits to the project, namely its contribution to the renewal of "this part of Oxford Street as a distinctive higher density urban high street and a defining element of greater Sydney’s urban character, thereby enhancing the vitality and liveability of this important street."

The new building will replace&nbsp;a dated 1960s-era apartment block which has 27 studio apartments.&nbsp;Design documents note that the current structure detracts from the character of Oxford Street, with the proposal seeking to restore and enhance the continuity of active shopfronts along the northern edge of the street.

The last project to launch on Oxford Street sold out immediately. It was fashion legend Robby Ingham's The Cambrian, which sold all of its 15 apartments in the first five hours of its weekend launch in 2023 through Ben Stewart.

Toohey Miller plans rare new apartment development on Oxford Street, Paddington 

<a href="https://www.apartments.com.au/developers/geocon-group">Geocon</a>&nbsp;is advancing its plans for its new&nbsp;mixed-use precinct in Braddon, updated the designs for the prominent site at the intersection of Northbourne and Wakefield Avenues.

The Canberra-based developer is proposing 558 apartments and seven commercial tenancies across four buildings under a staged application first lodged in 2023. The project also includes four levels of basement parking, communal spaces, pedestrian links, and landscaping enhancements.

While the development’s scale remains consistent, the current amendment introduces extensive changes to apartment layouts, building envelopes, façade articulation, and basement design.

According to the Design Statement by <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a>, these adjustments were driven by two core objectives: “enhancing apartment and common area amenity” and “ensuring acknowledgement of the housing design guidelines, entity advice, and planning expectations, while retaining the integrity of the original architectural concept”.

<img alt="Northbourne and Wakefield Avenues" data-entity-type="file" data-entity-uuid="066194ad-d73f-49b7-8e39-09e20690a7ac" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202.png?VersionId=I7eLnim8erdwd2Yu1N5sIcLSndeOK_TC" />

The revised apartment mix has been rebalanced to increase diversity and affordability, including a broader range of unit sizes and a higher proportion of three-bedroom dwellings. The updated design also removes problematic layouts, such as “snorkel” bedrooms and internalised studies, to improve liveability and natural light access.

Cox Architecture noted that “studios and smaller one-beds provide entry-level housing and broaden affordability,” while the number of family-sized three-bed apartments has been increased “in direct response to market demand and policy objectives”.

The circulation spaces within the towers have been redesigned to improve wayfinding and daylight penetration, while the ground floor layout has been reworked to create clearer and more visible entry points, particularly from Northbourne Avenue.

Refinements to the building’s massing and façades have also been introduced in response to planning feedback, with additional breaks and articulation to reduce perceived bulk. “Rooftop plant and lift overruns have been integrated and screened, resolving visibility concerns,” COX stated.

Basement levels have been consolidated and made more efficient, with improvements to bike and storage facilities.

<img alt="Northbourne and Wakefield Avenues" data-entity-type="file" data-entity-uuid="a1ab9357-707d-46fd-95d7-d6e09c70f20b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%203.png?VersionId=crDXvrmDsGqFGcb_p6NSUlsr0vYsRacq" />

The precinct’s pedestrian connections have been clarified, and the public realm has been restructured to improve permeability and align with the broader Northbourne corridor urban design framework. Landscaping updates include increased deep soil zones and rooftop communal areas, with tree management to be addressed separately.

Geocon acquired the 10,633 sqm site earlier in 2023 following approval of a prior build-to-rent scheme by Evri Group. The existing nine-storey commercial building was demolished in 2022.

The current proposal, designed by Cox Architecture, is positioned as a key contributor to the ACT Government’s urban renewal vision for Northbourne Avenue, an established transport and development spine served by light rail and major arterial roads.

First look: Geocon refines plans for four-tower precinct on Braddon's Northbourne Avenue

The booming Bilinga beachfront is set for another luxury apartment development, with plans filed for KYRR, an 11-level block on the dress circle Pacific Parade.

<a href="https://www.apartments.com.au/new-apartments/kyrr-70-pacific-parade-bilinga-qld-4225">KYRR</a>, on the corner of Pacific Parade and Archer Street, will comprise 24 apartment on its prime 1,009 sqm site. There had previously been plans for a much more boutique seven-storey, five-unit scheme.

Plans have been pitched by CHM Living, an entity associated with James Quinert, the founder of Norwood Constructions which is based in Melbourne.

<img alt="70 Pacific Parade and 1 Archer Street" data-entity-type="file" data-entity-uuid="2f6159ee-3511-4b16-b9fa-ae8c008b8faf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_5.png?VersionId=4n2YaBQdjXcshUAkxX8ei9X5N0v2AWqB" />

Designed by <a href="https://www.apartments.com.au/architects/byculprit">ByCulprit Architects</a>, the project includes a sculptural façade with soft curves and natural finishes, inspired by the rhythm and calm of the nearby Pacific Ocean.

According to the Town Planning Report by Town Planning Alliance, the project aspires to reflect the intent of the Medium Density Residential zone, aiming to "contribute to the city’s iconic skyline along the coastal spine" with a high degree of architectural modulation and landscaping that softens the built form.

There will be 22 large-scale three-bedroom apartments and two five-bedroom penthouses. The wellness amenities, including a gym, steam room, sauna, pool, golf simulator, and cold plunge, will sit on level one.

Kyrr will follow in the footsteps of <a href="https://www.apartments.com.au/buildings/pipis-bilinga-303-golden-four-drive-bilinga-qld-4225">PIPIS</a> in Bilinga by SIERA, which is all but sold out with just one of its luxury 19 apartments left to sell. The building set suburb records, with the penthouses both selling for over $8 million. Down the road is Bilinga House, which has a wider mix of configurations and price points starting from just over $1.2 million.

First look: Bilinga beachfront set for new luxury apartment development, KYRR

<a href="https://www.apartments.com.au/developers/coronation-property">Coronation Property</a> has received development approval for Archer &amp; Albert, a 32-storey, mixed-use residential development in the heart of Chatswood.

Located at 57–61 Archer Street and 34 Albert Avenue, <a href="https://www.apartments.com.au/new-apartments/archer-albert-chatswood-57-61-archer-street-chatswood-nsw-2067">Archer &amp; Albert</a> will deliver 150 new homes, including affordable housing, alongside ground-floor and podium retail, commercial space, a heritage house activated as a café, additional ground-level activation, and a landscaped publicly accessible park designed for community use.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/archer-albert-chatswood-57-61-archer-street-chatswood-nsw-2067">Archer &amp; Albert</a> is one of the few large-scale residential developments in the heart of Chatswood City to progress through a council-led architectural design competition and secure development approval, positioning it at the forefront of design led housing.&nbsp;

<img alt="Archer" data-entity-type="file" data-entity-uuid="33cb754a-1493-4203-bd16-096d320597f6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A%2BA_C03_EXT_StreetScape_ID1.jpg?VersionId=oLUPFVAMxuRUTH1Bwki16R48cEo.vLeB" />

Designed by global architecture practice <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, long-term collaborators of the Coronation team, the project draws inspiration from the Sydney Blue Gum High Forest and the leafy character of the South Chatswood Heritage Conservation Area. The design integrates a restored heritage-listed home and establishes a landscaped connection between Chatswood’s urban centre and its surrounding residential neighbourhoods.&nbsp;

“This is an important project for us and our first entry into the North Shore,” said Joe Nahas, Managing Director of &nbsp;Coronation Property.&nbsp;

“We are deliberate about where we invest and build, <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a> stands out because the fundamentals are already strong. Transport, employment, education, retail and health are all in place. Archer &amp; Albert is about adding new housing into a centre that already works and building on what exists.”&nbsp;

<img alt="Chatswood" data-entity-type="file" data-entity-uuid="620fcd78-00be-489b-823a-ca353387b91b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A%2BA_C04_EXT_PARK_HA_ID2.jpg?VersionId=NxSl04Zl1rzt94xlXNA6CNzSR9XMyLgP" />

Aras Labutis, Head of Urban Transformation at <a href="https://www.apartments.com.au/developers/coronation-property">Coronation Property</a>, said the project reflects a disciplined, collaborative approach to city shaping.&nbsp;

“Chatswood sits at an important junction between high-density commercial activity and established residential &nbsp;neighbourhoods," Labutis said.

"Our focus for Archer &amp; Albert was to manage that transition carefully, respecting what’s already there &nbsp;while contributing something new that feels deliberate and enduring."

The approved scheme delivers:&nbsp;

<ul>
	<li>A 32-storey mixed-use tower comprising 150 homes, including 41 affordable housing dwellings • 530sqm of ground-floor retail, dining and commercial offerings&nbsp;</li>
	<li>A 760sqm wellness tenancy integrated within the podium&nbsp;</li>
	<li>A restored heritage building, thoughtfully reimagined as a café overlooking the park&nbsp;</li>
	<li>A landscaped public park, designed as a calm green retreat in the heart of Chatswood&nbsp;</li>
	<li>Resident amenities include a premium gym, golf simulator, mahjong room, dedicated wellness areas, private &nbsp;dining facilities and a curated wine room&nbsp;</li>
	<li>Deep private balconies designed to capture outlooks and northern light&nbsp;</li>
	<li>A refined material palette of natural stone, timber and terracotta&nbsp;</li>
</ul>

[smartcode_project_cta:default project_id=29796]

Coronation receives green light for Archer & Albert apartments in Chatswood

Big Four

CBA has&nbsp;hiked its 3-year fixed rate for owner-occupiers in a further sign that Australia may soon see the end of ultra-low fixed rates.

Australia&rsquo;s largest bank has increased both its 3&nbsp;and 4-year fixed rates for owner-occupiers paying principal and interest by 0.05 per cent, as well as increasing some interest-only loans by 0.10 per cent.

[smartcode_project:default project_id=2407 project_image_fid=77652]

This follows hikes of 0.20 per cent by CBA in March to its 4- and 5- year fixed rates. CBA now only has one rate under 2 per cent &ndash; fixed for 2-years.

CBA home loan changes for owner-occupiers paying principal and interest:

<ul>
	<li>
	3-year fixed rates have been hiked from 2.14% to 2.19%, an increase of&nbsp;0.05%
	</li>
	<li>
	4-year fixed rates&nbsp;have been hiked from 2.19% to 2.24%, an increase of&nbsp;0.05%
	</li>
</ul>

RateCity.com.au research director, Sally Tindall, said CBA has become the first major lender to increase its 3-year fixed rate from the bank&rsquo;s record low.

&ldquo;Today&rsquo;s rate hikes might be small, but they point to a fixed rate market that&rsquo;s starting to rise,&rdquo; she said.

&ldquo;When CBA hiked its four-year rate in March, a flurry of lenders followed in its wake. We expect the same thing will happen with three-year rates in coming months.

<img alt="" height="354" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/lowest_may_rates.jpg" width="850" />

&ldquo;Banks are anticipating a rise in the cost of funding over the next few years, with the next cash rate hike expected in 2024, if not earlier, and the end of the RBA&rsquo;s term funding facility in just over one month.

&ldquo;The funding, which offers banks cheap money fixed for three years, has helped lenders offer record low rates to its customers. When the funding wraps up, many banks are likely to recalibrate their rates,&rdquo; she said.

This follows hikes of 0.20 per cent by CBA in March to its 4 and 5-year fixed rates in a further sign that Australia may soon see the end of ultra-low fixed rates

jordan_55689

CBA has hiked its 3 and 4-year fixed interest rates

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EXPERT OBSERVER
<div id="post-body-5407871025761201231" class="post-body entry-content">
<div>Investors squashed</div>
<div> </div>
<div>APRA's latest monthly banking statistics reported negative growth in investment loan exposures in July.</div>
<div> </div>
<div>Commonwealth Bank, ANZ Bank, Westpac Banking Corp, and Suncorp all recorded an outright decline in outstanding housing investment loans, while NAB's investment loan book was broadly flat. </div>
<div> </div>
<div>Year-on-year growth is either negative or slowing for each of the major banks. </div>
 <div class="separator"><a href="https://2.bp.blogspot.com/-LUd2DkjnNyQ/W4jYw_YUa9I/AAAAAAAAruk/0kMJO3Rn0woMwmcQ8naGWIk90CKq_tM7QCLcBGAs/s1600/APRA1.jpg"><img src="https://2.bp.blogspot.com/-LUd2DkjnNyQ/W4jYw_YUa9I/AAAAAAAAruk/0kMJO3Rn0woMwmcQ8naGWIk90CKq_tM7QCLcBGAs/s640/APRA1.jpg" width="640" height="370" data-original-height="800" data-original-width="1380"></a></div>
 <div>The Reserve Bank of Australia (RBA) also reported that year-on-year investor credit growth hit its lowest level on record in July 2018.</div>
<div> </div>
<div>With annual personal credit growth contracting even further to -1.4 per cent and business credit growth slower than a year earlier at just 3.4 per cent, the growth in total credit is now at the lowest level since the first quarter of 2014.</div>
<div> </div>
<div>Lending to homebuyers remains solid, but broad money growth is tracking at quarter-century lows. </div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-62-d91RX9QY/W4jSs7OqIUI/AAAAAAAAruQ/ecqCCrMsQwQtihDoGVNzZSsggQbVyaE6gCEwYBhgL/s1600/RBA2.jpg"><img src="https://2.bp.blogspot.com/-62-d91RX9QY/W4jSs7OqIUI/AAAAAAAAruQ/ecqCCrMsQwQtihDoGVNzZSsggQbVyaE6gCEwYBhgL/s640/RBA2.jpg" width="640" height="370" data-original-height="803" data-original-width="1382"></a></div>
 <div>The housing investor market share fell further to 33.2 per cent, now having fallen back in line with the average level for this millennium to date (there have evidently been a few misclassifications along the way). </div>
 <div class="separator"><a href="https://2.bp.blogspot.com/-WIlXPESvdWQ/W4jStMOt7AI/AAAAAAAAruU/hxDMv58ahysDC9EQi6kVEszUsmxP4QrGgCLcBGAs/s1600/RBA1.jpg"><img src="https://2.bp.blogspot.com/-WIlXPESvdWQ/W4jStMOt7AI/AAAAAAAAruU/hxDMv58ahysDC9EQi6kVEszUsmxP4QrGgCLcBGAs/s640/RBA1.jpg" width="640" height="352" data-original-height="801" data-original-width="1454"></a></div>
 <div>Equal &amp; opposite reaction</div>
<div> </div>
<div>Housing markets can be a finely balanced affair, with the strong level of rental supply of recent years now set to reverse.</div>
<div> </div>
<div>Given that we've been through a period of strong immigration/population growth alongside falling home ownership rates, from a macro perspective presumably this must be leading to rental shortages in some parts of the country (not so much in the big capital cities yet, due to the high level of off the plan apartment purchases through this cycle and the related lag effect). </div>
<div> </div>
<div>I don't have much time to look at it today, but a quick glance at the stats shows rental vacancy rates plunging towards zero in Orange, from certain parts of Adelaide to Ballarat and Canberra, and from Geelong West to Hobart and Moranbah. If the investor squeeze persists Melbourne may be next of the largest metropolises. </div>
<div> </div>
<div>Still plenty of apartment supply to be absorbed in the big cities, but this will be one trend to watch with interest.</div>
<div>
 PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
</div>
</div>
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pwargent-M4siyDbqQY

Investors squashed further: Pete Wargent

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Maintaining profit margins was the central consideration of the big-four banks when they failed to reduce mortgage rates in line with RBA cash rate cuts during 2019, the ACCC have said.
The ACCC’s Home Loan Price Inquiry interim report shows that the big four banks considered various factors as they decided whether to pass on the RBA’s June, July, and October rate cuts last year.
Recovering profits, however, was central to their decisions to not always fully pass through the lower rates to mortgage customers.
When the RBA cut rates in October, ANZ cut rates by 0.14%, Commonwealth Bank by 0.13%, NAB by 0.15%, and Westpac by 0.15% - all well below the full 0.25% mark.
Following the failure to meet RBA cuts, non-bank lenders roughly doubled their share in the market.
“The banks were attempting to shore up their profitability during a period of low interest rates,” ACCC chair Rod Sims said.
“It was their strong preference, after the RBA’s cuts, not to further reduce the rates customers were earning on some deposit products as they approached zero per cent.”
“The banks’ reluctance to cut these deposit rates led them to anticipate lower profits, which they aimed to recover by not always fully passing through cash rate cuts to their mortgage customers,” Mr Sims said.
The ACCC’s analysis also found that the big four banks benefitted in 2019 from a sustained decrease in their funding costs.
While headline rates for owner-occupier home loans with principal and interest repayments fell overall during 2018 and 2019, the banks’ funding costs fell even more over the same period.
“We recognise that much has changed in the economic and funding environment since last year. The COVID-19 pandemic has shifted priorities and the banks are playing an important role in supporting the economy,” Mr Sims said.
“However, the inquiry findings shed an important light on bank decision making and raise questions about whether the banks could, at the time, have passed on a higher proportion of those RBA cash rate cuts to their mortgage customers.”
The ACCC’s Home Loan Price Inquiry interim report also shows that, although average interest rates charged by the big four banks on home loans fell during 2019, a lack of price transparency and higher interest rates for existing loans continued to cost customers.
The interim report examines home loan prices charged by the big four banks between 1 January 2019 and 31 October 2019.
It found that home loan pricing practices continue to make it difficult for consumers to compare different mortgage products.
Headline rates did not accurately reflect the price most big four bank customers actually paid for their home loans, because the overwhelming majority of customers received discounts (including opaque discretionary discounts).
“Given the economic disruption, uncertainty and job losses stemming from the COVID-19 pandemic, many consumers may not be inclined to shop around and ask for discounts from their banks right now,” Mr Sims continued.
“However, our analysis shows how that even a small further reduction in interest rates could potentially save thousands of dollars over the life of a mortgage. Consumers should consider this carefully when it is time to re-engage with their lender.”
For example, a customer with an average-sized new, owner-occupier, principal and interest mortgage of $386,000 could save about $5000 on interest payments in the first year if they went from having no discount to receiving the big four banks’ average discount of 128 basis points.
At the end of September, customers with new owner-occupier loans with principal and interest repayments were paying, on average, 26 basis points less than customers with existing loans. The difference was usually even more significant for customers with older loans.
The ACCC’s final report, scheduled for release later this year, will consider the barriers to consumers switching to alternative home loan suppliers.
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wdavis-8cCN98p7xp

Maintaining profit margins was central to big four banks' interest rate cut decisions: ACCC

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The NAB will allow borrowers to pause mortgage repayments for up to six months, it announced this morning.
NAB will also cut 200bps from rate on new loans as well as reductions of up to 60bps on fixed rate home loans.
The other three of the big four banks have yet to reveal any response to alleviate mortgage repayment obligations for residential home loan borrowers.
It is predicted the banks will allow existing loan payments at principle and interest to be lowered by swinging borrowers over to interest only loans.
The move would require regularly approvals since there have been limits on IO lending for several years.
The banks have though, it seems almost entirely, decided not to cut home loans rates following the RBA emergency decision.
Of the big four only ANZ cut variable home loan rates, they were reduced 0.15 basis points.
Australian Banking Association CEO Anna Bligh today announced a small business relief package from Australia's banks.
Australian banks will defer loan repayments for six months for small businesses who need assistance because of the impacts of COVID-19.
Ms Bligh said the assistance package will apply to more than $100 bn of existing small business loans and depending on customer take up, "could put as much as $8 billion back into the pockets of small businesses as they battle through these difficult times."
Banks have developed this Small Business Relief Package following discussions with APRA and ASIC to provide the appropriate regulatory treatment.
"The package is subject to authorisation by the ACCC," she said.
Treasurer Josh Frydenberg told Sky News the government is working on a second stimulus package, "which is about cushioning the blow for so many of those Australians who may lose their job."
"Our focus is on targeted measures using the existing tax and transfer system and making it as simple and as easy as possible for Australians to get that support," the treasurer said.
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j.ballantyne1990-6AQqhLzZaK

IO loans set to be offered in big banks' response to coronavirus crisis

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All 26 home loan lenders who cut their interest rates following the RBA's announcement yesterday have cut in full.
It was the <a href="/expert-insights/finance/rba-cut-interest-rates-at-march-meeting-to-record-low-0-5-per-cent">first time since October</a> the RBA cut the official cash rate, with RBA Governor Philip Lowe citing the <a href="/expert-insights/finance/rate-cut-given-coronavirus-rba-governor-philip-lowes-march-2020-meeting-statement">economic effects of the coronavirus as a main driver</a>.
The cash rate now sits at a historic low 0.5 per cent.
Westpac were the first to cut, minutes after the RBA's decision. 
Commonwealth Bank followed, then NAB, and ANZ at the close of the day. 
All big four banks now offers their lowest variable rate under three per cent.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/3/4/Big%20Four%20RBA%20March%20cut.jpg" target="_blank">click here</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/4/Big%20Four%20RBA%20March%20cut.jpg" alt="">
Source: RateCity.
RateCity calculate the March cut will save the average mortgage holder $56 per month or $675 a year.
This is based on an owner occupier paying principal and interest on a $400,000, 30-year mortgage.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/3/4/RBA%20loan%20savers.jpg" target="_blank">click here</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/4/RBA%20loan%20savers.jpg" alt=""> 
Note: the above calculations are based on a person with a $400K, 30-year loan on RateCity’s average variable rate of 3.73 per cent.
RateCity.com.au's research director Sally Tindall says the majority of variable rate homeowners are set to save over $50 a month as a result of the cut to the cash rate. 
“This is money some families can put towards their bills but Australians with a bit of cash to spare may want to spend this cut in their local community.
“Any cut to the cash rate is always a double-edge sword as savers brace for another round of deposit rate cuts.
“While plenty of savers are facing the prospect of earning next to no interest on the back of this rate cut, it is still worth shopping around for a decent rate.
“When the dust settles, we expect the highest savings rate to sit at 2 per cent, which is at least a fraction higher than the current inflation rate,” she said.
<a href="/expert-insights/finance/athena-first-to-cut-interest-rates-after-march-rba-cut">Athena</a> was the national first lender to announce they were passing on the cuts to customers after the RBA's announcement, followed by the big-four banks <a href="/expert-insights/finance/westpac-first-of-the-big-four-to-cut-rates-in-full-after-rba-cut">Westpac</a>, <a href="/expert-insights/finance/commonwealth-bank-second-of-big-four-to-cut-rates-in-full-after-rba-cut">CBA</a>, <a href="/expert-insights/finance/nab-third-of-the-big-four-banks-to-announce-interest-rate-cuts">NAB</a>, and then <a href="/expert-insights/finance/anz-the-last-of-the-big-four-banks-to-pass-on-the-full-rate-cut">ANZ</a>.
ING, the nation's fifth biggest lender, today announced that it will make a 0.25% per annum cut for all new and existing customers with an ING variable rate home loan. The change will come into effect on 18 March 2020.
Freedom Lend, Homestar, Reduce Home Loans, RACQ Bank, 86 400, Auswide Bank, Defence Bank, The Mutual, St George, Bank SA, Bank of Melbourne, RAMS, Bank West Macquarie, Suncorp, Newcastle Permanent, Loans.com.au, First Mac, UBank, and ME Bank have all passed on the full rate cut. 
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jrobinson-rf4aSBido9

Who cut interest rates following the RBA's March cut?

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Roughly 70% of Australians do not trust the big banks, with half of that number losing confidence after their failure to pass on recent rate cuts, according to new research from comparison site Mozo. 
One in four big bank customers have left or intend to move to a non-four lender, equating to roughly 4.9 million Australians. 
“Australians are making it crystal clear that they are not impressed with the big banks, with 62% saying the big four are putting profits before customers,” said Kirsty Lamont, Mozo Director. 
“The days of bank profiteering are well and truly coming to an end with online and smaller banks offering ultra-competitive rates and minimal fees.
“Mozo’s latest research indicates that there could be a major shift in where Australians choose to do their banking.
“Online home loan lenders currently hold a paltry 6% of the population but the tide could be turning, with half of Australians saying they would consider making the move.” 
The biggest roadblock for online banks appears to be a lack of knowledge, with 38% of Australians saying they didn’t know enough to make the switch, while nearly one in four felt that an online lender offered no special incentives compared to a bank with a branch. 
Over 30% of Australians felt they needed to sit down with a mortgage expert to discuss their home loan.
“It’s understandable that Australians are exhibiting a level of trepidation regarding applying for a home loan online, given it may well be the largest sum of money they borrow in their life,” said Lamont.
“That said, an online lender can easily save you tens of thousands of dollars over the course of your loan as well as offering the same level of security as any major bank.
“Our research found that nearly 20% of big four customers felt their money was ‘secure’ with the big four.”
The big banks sluggish response to the flurry of rate cuts affected the trust of those aged 25-34 years old the most with one in four losing trust after the rate cuts.
They were also the age group most likely to move with 46% saying they intended to do so. One in five Australians surveyed admitted they didn’t know enough about the rate cuts to make an informed decision about their banks. 
When Australians were quizzed about the benefits of getting a home loan with an online lender instead of a traditional bank, lower interest rates were perceived to be the greatest benefit followed closely by lower fees, however, one in four Australians believe there was no advantage to opting for an online provider. 
“Only 19% of Australians believe that the big banks are doing what is necessary to stay afloat in the wake of the rate cuts, leaving a massive 80% unimpressed with big bank behaviour. The writing is on the wall for many borrowers and now is the time to find the most competitive rate on the market and reap the rewards,” says Lamont.
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One in four big bank customers have left or intend to leave after failure to pass on rate cuts

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EXPERT OBSERVER
Despite ACCC chair Rod Sims’ recent criticism of the bank practice of charging higher rates to loyal existing borrowers than they do for new business, lenders are rolling out big fixed rate home loan cuts - that apply to new customers only.
In October, many lenders have reserved their biggest rate cuts for the fixed rate home loan market – where rates only apply to new loans. The 2 and 3-year fixed rate market in particular is active right now with plenty of rate cut announcements. 
All of the big four banks have slashed fixed rates in recent weeks. 
From today, 10th October, Commonwealth Bank’s advertised 2 and 3 year (OO, P&amp;I) fixed rates in the “Wealth Package” have been cut to 2.99 per cent pa (Comparison rates from 4.46 per cent pa). 
Commonwealth Bank have now cut two and three-year fixed rates by 0.80 percentage points since June. The RBA has cut the official rate by 0.75 percentage points. Commonwealth Bank’s variable (OO, P&amp;I) advertised home loan rate has come down by 0.57 percentage points in the same period.
ANZ Bank cut two and three-year fixed rates last week by up to 0.30 percentage points. ANZ Bank now boasts 2 and 3-year fixed rates from 2.98 per cent pa (comparison rates from 4.45 per cent pa) with a package deal discount. ANZ cut variable rates last week by 0.14 percentage points. 
NAB have cut their fixed rates by up to 0.40 percentage points (OO, P&amp;I). NAB’s two-year rate is now 2.98 per cent pa (comparison rate 4.47 per cent pa).
Westpac (and subsidiaries) cut fixed rates by up to 1.3 percentage points in September. Westpac’sone-year Premier Advantage (OO, P&amp;I) rate was cut by 0.80 percentage points to 3.29 per cent pa (comparison rate 4.05 per cent pa)
Other lenders have also announced big rate cuts on fixed home loans with more announcements expected in coming days. 
From yesterday, 9th October, ING cut two and three-year fixed rates (OO, P&amp;I) by up to 0.20 per cent pa. ING now has fixed home loan rates starting at 2.89 per cent pa (comparison rate 4.23 per cent pa) and variable rates starting at 3.14 per cent pa (comparison rate 3.17 per cent pa).
There are now 44 two-year fixed rate home loan products (OO, P&amp;I) with advertised headline rates under 3.0 per cent on the InfoChoice database of 145 institutions.
There are now 48 three-year fixed rate home loan products (OO, P&amp;I) with advertised headline rates under 3.0 per cent on the InfoChoice database of 145 institutions.
There are 11 variable rate home loans (OO, P&amp;I) with advertised rates under 3.0 per cent listed by InfoChoice. 
Borrowers can not expect a great deal simply because they have been loyal to a particular institution for many years. 
When lenders announce rate cuts for fixed rate loans, they only apply to new customers. Existing customers continue to pay the fixed rate that applied at the beginning of the loan.
Banks and other lenders are competing with other and constantly trying to win new business.
Fixed rates are clearly now being set with the future in mind. Banks are apparently expecting the RBA to keep rates low well into 2021 and 2022 and that’s why they are setting 2 and 3-year fixed rates at these very low levels.
Borrowers who don’t like their rate are entitled to ask for a better deal and move to a better offer if they don’t get a good deal.
Borrowers need to factor this into their calculations. If rates change, a fixed rate will stay the same until the end of the term.
Vadim Taube is the CEO of leading Australian financial comparison site InfoChoice.com.au.
 
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More banks cut rates – for new customers only

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Macquarie Bank has made changes to its home loan serviceability assessment policy, reducing its interest rate floor from 7.25% to 5.3%.
Their new assessment rate floor is up to 45 basis points lower than the rest of the big four.
It has increased the assessment buffer rate from 2.25 per cent to 2.5 per cent, which is in line with changes by Westpac and ANZ.
Suncorp Bank has also revealed to stated that it will be cutting its interest rate floor from 7.25% to 5.5%
Westpac has also reduced their savings rates by up to 0.20 per cent.
<img src="https://www.urban.com.au/images/2019/7/19/Macquaire%202.png" alt="">
(Source: RateCity.com.au)
RateCity.com.au research director Sally Tindall said, "customers with an eSaver will be bitterly disappointed to find out they’ll be earning just 0.15 per cent interest on their savings on an ongoing basis. "
“All eyes are now on CBA to see what cuts they’ll make to their savings accounts. As the nation’s biggest bank, savings account holders are waiting with bated breath"
Thus far CBA is the only big bank that hasn’t cut savings rates following the July RBA cash rate cut.
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Macquarie Bank cuts interest rate floor 2 per cent, CBA unmoved

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Although the RBA has cut the cash rate by 0.5 per cent over the last two months, the big four haven't passed on all of this cut to their variable rate home loan customers.
All four banks have decided to keep a portion of the cuts back ranging from Westpac's 0.10 per cent, to the 0.06 per cent from NAB and CBA. 
Finder compiled some key points of interest following the interest rate announcement.
The new standard variable rate for the Big Four is 4.94%, with the new average lowest variable rate for the Big Four being 3.42%.
NAB and CBA have the lowest variable rate of the Big Four.
What the big banks are passing on to their variable rate home loan customers:
<img src="https://www.urban.com.au/images/2019/7/3/July%20Big%204-1.JPG" alt="">
The typical Australian is with a big four bank on a discounted variable rate, according to RateCity.com.au who has calculated what the last two months of rate cuts means for them, based on a $400K loan.
<img src="https://www.urban.com.au/images/2019/7/3/July%20Big%204-2.JPG" alt="">
As a result of the latest round of announcements, CBA and NAB are set to have the lowest ongoing variable rates from the big four banks at 3.35 per cent.
<img src="https://www.urban.com.au/images/2019/7/3/July%20Big%204-3.JPG" alt="">
ANZ and NAB are passing on this round of rate cuts within the first two weeks while CBA is once more taking three weeks to pass the latest rate cut on to home loan customers.
<ul style="text-align: left;" type="disc">
<li>CBA rates effective 23 July 2019</li>
<li>Westpac rates effective 16 July 2019</li>
<li>NAB rates effective 12 July 2019</li>
<li>ANZ rates effective 12 July 2019</li>
</ul>
Some of the lowest ongoing variable rates following Tuesday’s cut:
<ul style="text-align: left;" type="disc">
<li>Reduce home loans: 2.89%</li>
<li>Homestar Finance: 2.99%</li>
<li>Athena home loans: 3.09%</li>
</ul>
RateCity.com.au research director Sally Tindall said, “The majority of variable rate home owners are set to save over $100 a month as a result of these two cash rate cuts." 
“Any cut to the cash rate is always a double-edge sword as savers brace for another round of deposit rate cuts."
“RateCity.com.au’s average savings rate is 1.51 per cent but this is set to drop below inflation in coming days as this most recent cash rate cut gets passed on,” she concluded.
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What the Big 4 cuts mean for mortgage holders: RateCity

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Just hours after the RBA announced they are further dropping the cash rate by 0.25% today, non-bank lenders are slashing rates ahead of the Big four.
 <a href="https://www.athena.com.au/?gclid=Cj0KCQjw5J_mBRDVARIsAGqGLZCKwKfQxKUvNT0g33wrh6Kg2oBRfwJBwNSWn4iuj0nJVqF2uEWWJ6EaAqxjEALw_wcB" target="_blank">Athena</a> home loans announced it will be passing on the full rate cut.
Another passing on the full rate cut with rates as low as 2.89% is Reduce Home Loans.
Both Reduce Home Loans and Athena's cuts are effective immediately.
Reduce Home Loans was awarded Australia’s Cheapest Home Loan by Money magazine in 2016, 2017, 2018 and 2019.
Resimac and subsidiary State Custodians have both announced they will be passing on the full July RBA rate cut, effective July 24.
So far <a href="/expert-insights/finance/anz-first-to-cut-rates-again-this-time-the-full-cut">ANZ is the only of the big four</a> to announce they are cutting rates, passing on the full July cut, unlike in June when they only passed on 0.18 basis points.
CBA will reduce its standard variable rate home loans by between 0.19% p.a. and 0.25% p.a.
<ul>
<li>Owner Occupied Principal and Interest Standard Variable Rate home loan reduced by 0.19% per annum (p.a) to a new record low rate of 4.93% p.a.</li>
<li>Investor Principal and Interest Standard Variable Rate home loans reduced by 0.19% p.a. to 5.51% p.a.</li>
<li>Owner Occupied Interest Only Standard Variable Rate home loans reduced by 0.25% p.a. to 5.42% p.a.</li>
<li>Investor Interest Only Standard Variable Rate home loans reduced by 0.25% p.a. to 5.89% p.a.</li>
</ul>
CBA will also introduce a new special term deposit offer, with an extra bonus offer for existing pensioner customers.
At 6.30pm NAB announced it will reduce its variable rate home loans by 0.19% per annum, effective 12 July. 
This is on top of the 0.25% reduction last month by NAB.
Around 6.30pm Westpac announced it was reducing its variable interest rates for home loan customers, including a reduction of 0.2% p.a for owner occupiers and a reduction of 0.3% p.a. for investors with interest only repayments.
<a href="/expert-insights/finance/westpac-to-cut-by-0-2-but-more-for-io-borrowers">With the same 0.2% last month</a>, Westpac's combined rate cuts of the past two months ranks as the lowest for home loan customers.
The following interest rate changes will come into effect on July 16 at Westpac:
<ul>
<li>Variable home loan (owner occupier) rate has been reduced by .20% p.a. to 4.98% p.a. for customers with principal and interest repayments.</li>
<li>Variable residential investment property loan reduced by .20% p.a. to 5.53% p.a. for customers with principal and interest repayments.</li>
<li>Variable home loan (owner occupier) rate reduced by .20% p.a. to 5.57% p.a. for customers with interest only repayments.</li>
<li>Variable residential investment property loan rate reduced by .30% p.a. to 5.79% p.a. for customers with interest only repayments.  </li>
</ul>
“Today’s announcement means our Standard Variable Rate (SVR) will be the lowest it has been in more than 45 years for owner occupier home loan customers with principal and interest repayments,” David Lindberg, Westpac Chief Executive, Consumer said.
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