Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.

Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.

The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.

<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.

[smartcode_project:default project_id=114246 project_image_fid=378718]

Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.

Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.

"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.

"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.

"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."

[smartcode_project:default project_id=114246 project_image_fid=378713]

A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.

Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.

The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.

[smartcode_project:default project_id=114246 project_image_fid=378720]

Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.

"The penthouse is a serene study in quiet luxury," Freeman said.

"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."

Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.

"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.

"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."

[smartcode_project:default project_id=114246 project_image_fid=378694]

Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.

Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.

Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.

"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.

"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.

"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."

The penthouse will be exclusively marketed by SRM Residential.

[smartcode_project_cta:default project_id=114246]

Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.

The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.

Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.

[smartcode_project:default project_id=149951 project_image_fid=377072]

Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.

Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.

“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.

“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”

The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" />

Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.

Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.

Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.

“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.

“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”

“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”

<img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" />

Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.

It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.

Cottee said Marrone represented the first stage of the group's longer-term plans for the area.

Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.

Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.

Dalcott targets owner-occupiers with South Brisbane debut Marrone

Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.

Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.

Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" />

Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.

The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.

The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.

Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.

The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.

<img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" />

Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.

The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.

A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.

Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.

A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.

<img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." />

&nbsp;

&nbsp;

&nbsp;

Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.

Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.

The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.

First look: New apartment tower pitched for Strathfield Town Centre precinct

An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.

Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.

Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.

The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.

[smartcode_project:default project_id=95606 project_image_fid=378731]

All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.

The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.

[smartcode_project:default project_id=95606 project_image_fid=378732]

A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.

OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.

“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.

“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”

[smartcode_project:default project_id=95606 project_image_fid=378736]

La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.

ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.

“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.

“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”

Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.

“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.

“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”

The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.

[smartcode_project:default project_id=95606 project_image_fid=378734]

Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.

The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.

Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.

The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.

Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.

[smartcode_project_cta:default project_id=95606]

ODUS releases $18 million penthouse crowning La Mer Main Beach

<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

Australia&rsquo;s biggest bank, CBA, has increased its 2- and 4- year fixed home loan rates by 0.05 per cent for owner-occupiers paying principal and interest. 
&nbsp; 
It is the third time CBA has hiked its 4-year fixed rate this year, but the first time the bank has hiked its 2-year rate for owner-occupiers.

&ldquo;CBA is factoring in a rise in the cost of funding over the next couple of years, particularly now the RBA&rsquo;s term funding facility has closed.&rdquo; 
&nbsp; 
A recent economic insights report from CBA shows around half of its new owner-occupier loans settled in June were fixed, with the two-year rate the most popular. 
&nbsp; 
&ldquo;Despite today&rsquo;s hikes, CBA still has one rate under 2 per cent &ndash; the bank is not going to let go of that easily,&rdquo; said RateCity.com.au research director, Sally Tindall. 
&nbsp; 
&ldquo;CBA&rsquo;s two-year rate was extremely competitive and attracting significant interest. By keeping it just under 2 per cent, the bank is trying to keep momentum going at a more sustainable price,&quot; she said. 
&nbsp; 
Analysis of the RateCity.com.au database shows over the last two months, there have been more hikes than cuts in every fixed rate category with the exception of 1-year rates. 
&nbsp; 
But ME Bank has cut rates across a few home loans from early August, while boosting its refinance cashback offer to $3,000.

The cuts were across its two-year fixed and variable home loan range.

The two-year fixed rate Member Package home loan was cut by 20 basis points to 1.89% p.a. (3.17% p.a. comparison rate*) - a &quot;record low&quot; for the lender.

This particular comparison rate applies to owner occupier borrowers with 80% LVR i.e. a 20% deposit, paying principal &amp; interest.&nbsp;

The same advertised rate applies to other LVRs in the product line, but different comparison rates apply.

A number of other home loans - both fixed and variable - with different LVRs were also cut by between 5 and 31 basis points.

While the majority of changes to fixed rates in the last two months have been hikes, RateCity advise the opposite is happening in the variable rate market.&nbsp; 
&nbsp; 
RateCity.com.au home loan database analysis shows 49 lenders have cut at least one variable rate in the past two months while 10 lenders have hiked variable rates in that time.

The vast majority of variable rate cuts are reserved for new customers, not existing ones, RateCity research director, Sally Tindall, said.

&ldquo;Variable rates are at record lows, however, most of these deals are reserved for new customers, not existing ones, unless you specifically ask,&rdquo; she said. 
&nbsp; 
&ldquo;Before you call, check what rate your bank is giving new customers for the same home loan, but also find out what other lenders have on offer.

&ldquo;If you are paying significantly more than a new customer, pick up the phone and ask your bank &lsquo;why?&rsquo;.

[smartcode_project:default project_id=7363 project_image_fid=41840] 
&nbsp; 
&ldquo;If you have a good track record of paying down your debt, and the bank thinks you might switch to a more competitive lender, they&rsquo;re likely to play ball. 
&nbsp; 
&ldquo;A lot of people think a handful of basis points won&rsquo;t make much of a difference, but if the discount is permanent, then the savings can potentially run into the thousands in just a few years,&rdquo; she said.

ME has also increased its cashback offer to $3,000 for externally-refinanced home loans.

The new lending amount must be minimum of $250,000.

Eligible refinancers must apply by Friday 27 August inclusive, and settle by Friday 29 October.

ME Bank CEO Adam Crane said the cuts would assist borrowers &quot;looking to maximise their borrowing in a challenging property market.&quot;

In February, ME Bank merged with Bank of Queensland with the deal expected to be finalised this month.

But ME Bank cut rates across a few home loans, while boosting its refinance cashback offer to $3,000

jchancellor-FAypfDUnLy

Home loan mortgage rate rises continue

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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CBA has today cut its one- and two-year fixed rates for owner-occupiers, but bucked the trend by hiking its four-year rate.

Following pressure from rivals Westpac and NAB, CBA has brought its two-year fixed rate to under 2 per cent.

However, the most significant change was the hike to its four-year fixed rate. This is the first big four bank to hike its four-year owner-occupier rate since October 2019 – a sign the bank is pricing in a higher cash rate from 2024.

<img alt="" height="128" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/cba_rates.jpg" width="791">

Sally Tindall, research director at RateCity.com.au, said the cuts to the bank’s four-year fixed rates could be a sign of things to come.

“CBA has bowed to market pressure by cutting its two-year rate to under 2 per cent,” she said.

[smartcode_project:default project_id=3490]

“However, the bank is giving with one hand, and taking away with the other, hiking its four-year fixed rate by the same amount for new customers."

“After the last RBA rate in November 2020, all four big banks responded by cutting fixed rates, in particular their four-year rates. Less than five months later, CBA has taken this deal off the table."

“It’s not surprising CBA has decided to raise its four-year fixed loan – the bank is pricing in at least one cash rate hike over this time."

[smartcode_project:default project_id=89720]

“Governor Lowe has repeatedly said the first round of cash rate hikes wouldn’t be until at least 2024, but that’s only three years away."

“Someone who fixes their rate for four years today could very well see variable rates go up within that time, provided the economic recovery stays on track."

“Other banks could start hiking their four- and five- year fixed rates in coming months to factor in a potential rate rise in 2024,” she concluded.
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CBA has today cut its one- and two-year fixed rates for owner-occupiers, but bucked the trend by hiking its four-year rate.

CBA is the first of the Big Four banks to hike rates

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EXPERT OBSERVER
The Commonwealth Bank of Australia reported its full year results last week.
<div>Cash profit for FY2018 of $9.41 billion was down 4.7 per cent. </div>
<div> </div>
<div>But overall this remained a solid underlying result with a fully franked dividend of $4.31 per share heading the way of investors (up 2 cents or +0.5 per cent...thanks!). </div>
<div> </div>
<div>Increased funding costs impacted net interest margins adversely as expected.</div>
<div> </div>
<div>However, the group more than made these costs back in the financial year through changes in the funding mix and the repricing of investor and interest-only loans.</div>
<div> </div>
<div>In fact, the net interest margin was up 5bps over FY2018 to 2.15 per cent.</div>
<div> </div>
<div>Group loan impairment expense was also very low, at just 15bps.</div>
<div> </div>
<div>Note that the Group will adopt AASB 9 from 1 July 2018, and therefore total provisions will increase to reflect forward-looking factors as required by the standard (this adjustment will will pushed through opening retained earnings and therefore will have no impact on the current year income statement). </div>
<div> </div>
<div>'As if' earnings</div>
<div> </div>
<div>A number of one-off items including the $700 million AUSTRAC penalty reduced the statutory NPAT and cash NPAT.</div>
<div> </div>
<div>Excluding one-off items, cash profit was up by 3.7 per cent to above $10 billion.</div>
<div> </div>
<div>From the slide deck</div>
<div> </div>
<div>There were so may great slides in the full year preso that's it's impossible to know where to start, but here are just a select few. </div>
<div> </div>
<div>90+ day home loan arrears were notably up a bit year-on-year from 0.6 per cent to 0.7 per cent. </div>
<div> </div>
<div>Click to enlarge</div>
<div> </div>
 
<div><img src="https://2.bp.blogspot.com/-NikJ1XTC2aM/W2obenRu8FI/AAAAAAAAra0/Bu_BuRukzkwr3D1deQO6h0gvC7zNKaT1ACLcBGAs/s640/CBA1.jpg" width="640" height="510" data-original-height="646" data-original-width="810"></div>
 
<div>(Source: ASX: CBA)</div>
 
<div>The year-on-year increase in arrears was mainly due to Western Australia and the Northern Territory, with changes elsewhere relatively benign. </div>
 
<div><img src="https://3.bp.blogspot.com/-BPTlAOXy52Q/W2obesMjuDI/AAAAAAAAraw/-PYHhx5N81AQ0yr6tGOyTwhmdVcTyqm9gCLcBGAs/s640/CBA3.jpg" width="640" height="374" data-original-height="738" data-original-width="1257"></div>
 
<div>The switching of interest-only (IO) loans peaked in September 2017. </div>
<div> </div>
<div>There is still plenty of scheduled IO expiry over the next two financial years, however, with the blue bars arguably representing the loans most at risk of arrears (being IO loans to investors). </div>
 
<div><img src="https://1.bp.blogspot.com/-oV4exYg2jIY/W2obf3MIo_I/AAAAAAAAra8/NGaVAzwTFF8L3X27_sdVCv1GdNukH2T6wCLcBGAs/s640/CBA4.jpg" width="640" height="276" data-original-height="643" data-original-width="1490"></div>
 Home loan repayments in advance remain popular, though not for all borrowers. 
<div><img src="https://3.bp.blogspot.com/-zmTCKRUK6YA/W2ocvV3VTBI/AAAAAAAArbY/bIkgLBE06_Ak3f32pJmK2CLHaDUB__-mgCLcBGAs/s640/CBA7.jpg" width="640" height="330" data-original-height="750" data-original-width="1454"></div>
 
<div>Finally, CBA optimistically notes that outside recessions or global financial crises modern housing downturns generally only last about 8 months on average (so on that basis, this one should be about done).</div>
 
<div><img src="https://3.bp.blogspot.com/-baZfqx1F2yk/W2obgIOcIrI/AAAAAAAArbE/cfkEW3UjyasvCcohNfaoPV3nTBFD9zsgwCLcBGAs/s640/CBA6.jpg" width="640" height="330" data-original-height="796" data-original-width="1536"></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>.
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pwargent-M4siyDbqQY

WA home loan arrears still problematic for CBA: Pete Wargent

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CBA, the nation's largest mortgage lender, is axing residential and commercial loans for self managed super funds (SMSF).
The bank will be withdrawing its SMSF lending product, SuperGear, from October 12.
Westpac Group, the nation's second largest mortgage lender, already pulled out of the sector in July.
But the Australian Financial Review said the move had shocked mortgage brokers and financial advisers. 
"We are seeing the writing on the wall for leveraged SMSFs," said Sally Tindall, director of research for RateCity, which monitors rates for financial service products. 
"This calls into question the viability of the leveraged SMSF sector."
"CBA has decided to withdraw its SMSF lending product that allows SMSF trusts to purchase both residentially and commercially secured properties," a spokesman said.
"This is part of our strategy to become a simpler, better bank.
"We are streamlining our product portfolio and have decided to discontinue SuperGear."
The bank said it will be writing to customers who hold a SuperGear loan outlining the changes.
It will continue to support existing loan accounts.
Regulators fear problems arising from SMSF investors leveraging their superannuation to invest in a single residential property because of the lack of diversification and increasing dangers of loss in a falling property market where it is difficult to find tenants. 
A key finding of the David Murray-led financial system inquiry in 2014 was that leverage should be banned in superannuation funds to mitigate the risk of financial instability.
The government rejected his advice.
Nearly $700 billion is held in SMSF funds by more than one million investors.
During the past four years the number of members investing in property has increased from about 3.6% to 6.9% of SMSF fund assets.
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j.ballantyne1990-6AQqhLzZaK

Leveraged SMSF sector in doubt as CBA scraps SMSF lending

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<div class="shortIntro parbase">
By late April some 1000 Australians have now purchased a property with Commonwealth Bank under the Australian Government's First Home Loan Deposit Scheme.
The scheme, launched on January 1, 2020, helps eligible first homebuyers purchase a home with a deposit of as little as five per cent.  
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In addition to the 1,000 customers who have purchased a home, CBA has helped a further 2,400 customers secure a place under the scheme.
CBA announced that customers who have reserved a place under the Scheme who have not yet found a property, can now request to extend the deadline to find a property and enter a contract of sale for another 90 days. 
It will give customers a total of six months to find a property and provide them with the peace of mind they need during this difficult period that their place under the scheme is safe. 
CBA Group Executive Retail Banking Services, Angus Sullivan said, “There is a lot of interest and uncertainty about the impact the coronavirus will have on the Australian property market so it’s encouraging that we have crossed this exciting milestone in the current environment. 
“As Australia's largest home-loan lender, our Australian-based call centres remain open for business and we continue to have industry leading processing and turnaround times for home loan applications. 
“Whether you are purchasing your first home or looking to buy a new home we want to reassure customers that we are open for business and here to help them realise their home ownership goals. 
“We also realise that some customers are looking for support during this difficult period and we have a range of measures to assist them including deferring repayments and reducing repayments to free up cash.” 
Rebecca Dore, a 32-year-old from Victoria, was the thousandth customer to purchase her dream home with CBA in Pakenham, Victoria.
“I was saving for a deposit but was a few years off buying a property so when my Lender contacted me and explained that I would be able to purchase a home much sooner by participating in the Scheme I was ecstatic."
</div>
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Commonwealth Bank secures 1000 first home loan deposit scheme purchasers

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ASIC has today commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank of Australia (CBA) for charging a rate of interest on business overdraft accounts substantially higher than what its customers were advised.
ASIC alleges from 29 December 2011 to 31 March 2018, CBA:
<ul>
<li>provided customers with terms and conditions for certain credit facilities that stated an interest rate to be charged or that had been charged (in most cases, 16% per annum);</li>
<li>sent periodic account statements to customers referencing the rate at which interest rate was being charged (in most cases, 16% per annum); and</li>
<li>due to a systems error, charged more than 2,200 customers a different, higher interest rate on their overdraft accounts (in most cases approximately 34% per annum).</li>
</ul>
The total overcharged interest exceeded $2.9 million.
ASIC alleges that CBA attempted to manually fix the overcharging error after a complaint was made to the bank in 2013. The manual fixes were unsuccessful, and customers continued to be overcharged. ASIC alleges that from 1 December 2014 to 31 March 2018, being within the six-year limitation period, CBA engaged in conduct that contravened financial services laws. Specifically, that on 12,119 occasions, CBA:
<ul>
<li>made a misleading representation in contravention of s12DB(1)(g) of the ASIC Act;</li>
<li>engaged in misleading or deceptive conduct, or conduct that was likely to mislead or deceive, in contravention of s12DA(1) of the ASIC Act; and</li>
<li>failed to comply with its obligation to comply with financial services laws in contravention of s912A(1)(c) of the Corporations Act.</li>
</ul>
ASIC is seeking declarations, pecuniary penalties and other orders against CBA.
The date for the first case management hearing is yet to be scheduled.
ASIC previously obtained a $5 million penalty against CBA for failures of their AgriAdvantage Plus Package for failures including overcharged interest on loans and fees.
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ASIC takes CBA to court over alleged overcharging of business overdraft interest rates

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The Commonwealth Bank has trimmed the rate on its ‘no frills’ home loan for homeowners and investors. 
The move sees the major bank’s Extra Home Loans cut by 0.10 percent for owner occupiers and up to 0.15 percent for investors, taking the lowest variable rate offer from the bank to 2.69 percent.
While the Extra Home Loan is one without an offset or extensive features, it does allow for additional repayments and redraw, which Canstar advised are two critical features of a loan that enable borrowers to pay their loan off sooner.
<a href="https://www.canstar.com.au/" target="_blank">Canstar</a> analysis shows CBA’s owner occupied Extra home loan rate of 2.69% (2.70% comparison rate) is 1.16% below the bank’s loan with an offset account being its Wealth Package at a variable rate of 3.85% (4.27% comparison rate).
The difference in monthly repayments between the two on a $400,000 loan over 30 years is $255. Borrowers need to decide whether they value the extra benefits of the package loan that highly.
Looking across the market, further analysis shows mortgage holders will pay an average of 0.37% more for a variable rate loan with an offset account, or $81 each month on a $400,000 home loan over 30 years.
Canstar’s Group Executive, Financial Services, Steve Mickenbecker says borrowers will typically pay more for a loan with an attached offset account so it might be worth considering one of the basic loans available and taking advantage of the extra repayment feature. 
 “Getting ahead of your home loan repayment schedule works to recession proof your finances and helps build long term wealth.”  
He said when no frills loans first hit the market, they came with the drawback that you could not make extra repayments to get ahead. 
“For Commonwealth Bank in particular, a no frills loan may work for borrowers who don’t see the value of the additional benefits of the packaged loan that could be costing them an extra could be costing them an extra $255 a month.”
The CBA changes:
 
<div dir="ltr" align="left">
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<colgroup>
<col width="156">
<col width="99">
<col width="97">
<col width="95">
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<col width="82">
</colgroup>
<tbody>
<tr>
<td colspan="6">
CBA Home Loan Interest Rate Changes
25 September 2020
</td>
</tr>
<tr>
<td colspan="6">
Owner Occupied
</td>
</tr>
<tr>
<td>
Product &amp; LVR
</td>
<td>
Repayment type
</td>
<td>
Old rate
</td>
<td>
New rate
</td>
<td>
Comparison rate
</td>
<td>
Change
</td>
</tr>
<tr>
<td>
Extra Home Loan &lt;=70%
</td>
<td>
P&amp;I
</td>
<td>
2.79%
</td>
<td>
2.69%
</td>
<td>
2.70%
</td>
<td>
-0.10%
</td>
</tr>
<tr>
<td>
Extra Home Loan 70.01-80%
</td>
<td>
P&amp;I
</td>
<td>
2.79%
</td>
<td>
2.69%
</td>
<td>
2.70%
</td>
<td>
-0.10%
</td>
</tr>
<tr>
<td>
Extra Home Loan 80.01-95%
</td>
<td>
P&amp;I
</td>
<td>
3.13%
</td>
<td>
3.13%
</td>
<td>
3.14%
</td>
<td>
-
</td>
</tr>
<tr>
<td>
Extra Home Loan &lt;=70%
</td>
<td>
IO
</td>
<td>
3.35%
</td>
<td>
3.25%
</td>
<td>
2.91%
</td>
<td>
-0.10%
</td>
</tr>
<tr>
<td>
Extra Home Loan 70.01-80%
</td>
<td>
IO
</td>
<td>
3.35%
</td>
<td>
3.25%
</td>
<td>
2.91%
</td>
<td>
-0.10%
</td>
</tr>
<tr>
<td colspan="6">
Investment
</td>
</tr>
<tr>
<td>
Product &amp; LVR
</td>
<td>
Repayment type
</td>
<td>
Old rate
</td>
<td>
New rate
</td>
<td>
Comparison rate
</td>
<td>
Change
</td>
</tr>
<tr>
<td>
Extra Home Loan &lt;=70%
</td>
<td>
P&amp;I
</td>
<td>
3.27%
</td>
<td>
3.12%
</td>
<td>
3.13%
</td>
<td>
-0.15%
</td>
</tr>
<tr>
<td>
Extra Home Loan 70.01-80%
</td>
<td>
P&amp;I
</td>
<td>
3.27%
</td>
<td>
3.15%
</td>
<td>
3.16%
</td>
<td>
-0.12%
</td>
</tr>
<tr>
<td>
Extra Home Loan 80.01-95%
</td>
<td>
P&amp;I
</td>
<td>
3.54%
</td>
<td>
3.54%
</td>
<td>
3.55%
</td>
<td>
-
</td>
</tr>
<tr>
<td>
Extra Home Loan &lt;=70%
</td>
<td>
IO
</td>
<td>
3.83%
</td>
<td>
3.68%
</td>
<td>
3.34%
</td>
<td>
-0.15%
</td>
</tr>
<tr>
<td>
Extra Home Loan 70.01-80%
</td>
<td>
IO
</td>
<td>
3.83%
</td>
<td>
3.71%
</td>
<td>
3.37%
</td>
<td>
-0.12%
</td>
</tr>
<tr>
<td>
Extra Home Loan 80.01-95%
</td>
<td>
IO
</td>
<td>
4.10%
</td>
<td>
4.10%
</td>
<td>
3.77%
</td>
<td>
-
</td>
</tr>
</tbody>
</table>
</div>
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CBA trims home loan rates

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Australia’s biggest bank, CBA, has today announced a no interest credit card – the second of its kind in as many days.
The CommBank Neo card won’t be available for customers until late 2020. It will have credit limits of $1,000, $2,000 and $3,000 with no interest and no late or currency conversion fees.
The card includes a monthly fee based on the credit limit, however, there’s no fee if you don’t use the card, and have a $0 balance throughout any given month.
Last night big four bank NAB launched the StraightUp no interest credit card with near identical terms and conditions.
With buy now, pay later services like Afterpay and Zip Pay attracting more than 5 million customers between them, the big banks have come up with a credit card to compete.
RateCity.com.au research director Sally Tindall said, “These new cards signal it’s game on between the big banks and buy now, pay later.
“Hopefully this competition will bring more low cost, consumer-focused credit options to the table,” she said.
While CBA’s card is eerily similar to NAB’s, aside from the small variation in monthly fees, there are two key differences.
“The main difference between the two cards is NAB is asking customers to pay back more of their debt each month, which will see them clear it faster,” she said.
“The second difference is CBA offers shopping perks, but only if customers spend at certain stores."
“Customers should be wary: if they start buying things in a bid to claw back their monthly fee, then they’ve probably been had."
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CBA follows NAB's lead, announces Australia’s second no interest credit card

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CBA has cut the introductory rate on its NetBank Saver account by -0.05% while slashing the bonus rate on its GoalSaver account by -0.05% for balances of $50,000 or more.
The bank has also cut the bonus rate on its Youthsaver account by -0.10%.
<img src="https://www.urban.com.au/images/2020/8/20/NAB%20AUG%20cuts.JPG" alt="">
This is the second time in just over six weeks that CBA has cut the introductory rate on its NetBank Saver account and the total rate available on its Youthsaver account as well as the bonus rate on its GoalSaver account.
NAB has also revealed cuts of between -0.05% and -0.15% for its 1, 2 and 3-month term deposits.
<img src="https://www.urban.com.au/images/2020/8/20/NAB%20CBA%20AUG%20cuts.JPG" alt="">
New analysis shows 50% of savings accounts and 80% of term deposits on Canstar’s database have a total rate of less than 1%.
Canstar’s Editor-at-Large and money expert, Effie Zahos commented on the rate cuts, “A cut to deposit rates right now will be felt pretty hard by anyone financially impacted by the pandemic, people saving for their first car or first home, and many retirees.”
“Depending on the balance of your savings, retirees would see the Government deeming you to earn 2.25% on the portion of your savings over $53,000, despite the highest deposit rate being 2.20%. Even smaller balances are deemed to earn over 0.25%. This goes to show retirees with money in the bank have to be chasing the top returns on savings accounts."
“Banks are seeing their margins squeezed, some banks aren’t paying dividends and others are trying to offer higher rates in a low rate environment. It’s forcing savers to move their money about."
“Where one lender is reducing rates, there will be another holding on with a better deal.”
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