Growing national developer Time &amp; Place has announced its fifth new apartment development.

With two projects in Manly and two upcoming in Surry Hills and Potts Point, the developer, which expanded beyond Melbourne just a few years ago, is now heading to Mosman. It is planning 53 new apartments on Redan Street.

The 3,233 sqm site, spanning <a href="https://www.apartments.com.au/new-apartments/40-48-redan-street-mosman-nsw-2088">40–48 Redan Street</a> with frontage to Redan Lane, is located just under 400 metres from Spit Junction Town Centre. It is reported the developer paid around $100 million for the five-site amalgamation.

Time &amp; Place, founded by Tim Price and backed by James Packer’s private investment firm NPACT, has submitted the project as a State Significant Development through the NSW Government’s Housing Delivery Authority pathway.

Of the 53 apartments, 42 will be released to the market, with the remaining 11 allocated as affordable housing in line with NSW Government requirements.

fjc Studio has designed the building. In its Design Report, the architect said the diverse mix of dwelling types and sizes, including 11 two-bedroom affordable housing units, 40 three-bedroom apartments, and two four-bedroom residences, will support a broad demographic, including families, downsizers, and key workers.

The development will rise to nine levels, a height encouraged by the NSW Government due to the site’s proximity to Spit Junction, which has been identified as a low- to mid-rise centre. Developments within a certain proximity to these centres are permitted increased height.

fjc said the project “achieves an appropriate density outcome for its setting by balancing increased housing supply with strong amenity performance,” adding that it “makes a measurable contribution to NSW housing supply targets through the delivery of additional dwellings and dedicated affordable housing.”

The new development will replace five existing two-storey homes.

“By aligning with the objectives of the Housing SEPP and applying careful architectural and urban design principles, the development provides high-quality residential accommodation that integrates sensitively within its established Mosman context and delivers enduring benefits to residents and the wider community.”

Mosman has become increasingly popular with developers in recent years.

Developer Abadeen has been particularly active, with Mosman Residences currently on the market and under construction on Clifford Street. It also has an upcoming Burran Avenue project, comprising just three apartments on the Balmoral Slopes, and recently secured the Midas and Honeysuckle nursery site on Military Road.

Prosker Property has a project on Redan Lane, just a few doors down from Time &amp; Place’s proposed development.

Developers including Toohey Miller, DARE Property Group, and WINIM also have projects underway in the area. In 2024, a five-year target was set for the Mosman LGA to increase housing supply by 500 dwellings by 2029.

Time &amp; Place entered the Sydney market with Two Tides, its under construction Manly development. Given its sales success, it has secured another development in the area, more boutique, facing the beach on North Steyne.

They are hoping to launch their redevelopment of The Chimes in Potts Point this year, and next year will look to take to market Marlborough House, an adaptive re-use of the landmark David Jones warehouse in Surry Hills.

Joel Robinson

Time & Place to take on Mosman apartment market

Brunswick’s civic heart continues to consolidate around the Merri-bek Arts and Culture Precinct, where a growing cluster of cultural institutions, recreation facilities, and public infrastructure has created one of the inner north’s most defined community hubs.&nbsp;

Within this evolving precinct, <a href="https://www.apartments.com.au/new-apartments/saxon-street-by-milieu-brunswick-31-saxon-street-brunswick-vic-3056">Saxon Street by Milieu</a> introduces new housing directly alongside the civic anchors that shape daily life in the suburb.

At 31 Saxon Street, the project sits immediately beside Brunswick Baths and within moments of Brunswick Library and Town Hall, longstanding institutions that support both community services and everyday amenity.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348840]

Next door, the newly delivered Balam Balam Place arts precinct has emerged as a central piece of Merri-bek Council’s cultural strategy, bringing together creative studios, exhibition spaces, maternal and child health services, and community programming in a purpose-built civic facility. Together, these destinations have reinforced the surrounding blocks as a focal point for public life in Brunswick.

This part of <a href="https://www.apartments.com.au/developments/brunswick-vic-3056">Brunswick</a> forms a key pocket within the suburb’s designated Major Activity Centre, where long-term planning has prioritised walkability, civic investment, and increased housing supply close to transport and services. The surrounding street network reflects that strategy, with compact blocks, established retail corridors and active transport links supporting a lifestyle that is largely navigable on foot.

Within a few minutes’ walk, Sydney Road delivers one of Melbourne’s most recognisable streets, known for its long-running mix of independent retailers, international dining venues and everyday convenience. Tram routes along Sydney Road provide frequent connections south toward the CBD and north through Brunswick and Coburg, while Jewell Station on the Upfield line sits within roughly a ten-minute walk, offering direct train access into the city.

[smartcode_project:default project_id=136434 project_image_fid=348839]

Active transport also plays a significant role locally. The nearby Upfield Bike Path forms a key north–south cycling corridor linking Brunswick through Parkville and into the central city, reinforcing the area’s reputation as one of Melbourne’s most accessible inner-urban neighbourhoods for cyclists and pedestrians alike.

The surrounding civic cluster extends beyond cultural infrastructure. Siteworks, a nearby creative hub supporting artists and community organisations, adds to the concentration of cultural activity in the immediate area. Educational institutions such as Brunswick North Primary School, Brunswick Secondary College and RMIT’s Brunswick campus are also within easy reach, contributing to the suburb’s diverse resident base spanning families, students and professionals.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348841]

Designed by <a href="https://www.apartments.com.au/architects/jackson-clements-burrows-architects">Jackson Clements Burrows Architects</a> in collaboration with <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> and landscape architects <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, the nine-level building has been shaped to respond to the surrounding streetscape, with lower levels aligning to the street and upper storeys stepping back to soften its scale and improve solar access.&nbsp;

Curved balcony forms reference nearby heritage architecture, while the development’s public realm improvements include a widened footpath along Saxon Street to strengthen pedestrian connections between the precinct’s civic sites.

Sustainability also underpins the project’s approach. The building is designed to operate entirely on electric infrastructure supported by rooftop solar, with an average 7.5-star NatHERS energy rating and EV-charging readiness across the development. Shared resident amenities will include a landscaped rooftop terrace with barbecue and covered dining areas intended to encourage informal interaction between residents.

Saxon Street marks developer Milieu's fifth project in Brunswick and continues its focus on design-led infill housing across Melbourne’s inner suburbs.&nbsp;

Construction has commenced through reputable builder Manresa, who will complete the project in 2027.

[smartcode_project_cta:default project_id=136434]

Saxon Street by Milieu connects residents to Brunswick’s cultural and civic core

Within <a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a>, <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>&nbsp;takes a different approach to larger residences, moving away from the constraints of a single level.

In Grand Residence 3.05, known as the Lustre, plays out across two levels, with a mezzanine configuration that is uncommon in apartment living.

Lustre is a four-bathroom residence where the layout creates a clear distinction between shared and private zones, with uninterrupted views toward the Dandenong Ranges extending the sense of openness from the main living areas.

Entry is to the primary living level, where the kitchen, dining, and living areas are arranged as one continuous space. Timber flooring runs throughout, with a fireplace set within the living zone. Full-height glazing brings in natural light, supported by double glazing that improves thermal performance.

[smartcode_project:default project_id=342 project_image_fid=357506]

The kitchen is configured as both a working and social space. A large island bench provides seating, while a walk-in pantry extends storage beyond typical apartment expectations.

Gaggenau appliances, including a 900mm gas cooktop and 600mm oven, are integrated into a layout that connects directly to the adjacent dining and living areas, and outward to the terrace. This balcony includes a built-in BBQ, reinforcing the apartment’s capacity to accommodate larger gatherings without compromising internal space.

A dedicated laundry room, powder room, and a wine cellar area sit discreetly off the main living zone, ensuring that functional requirements are resolved without encroaching on primary living areas. The master suite is also located on this level, designed as a retreat with a walk-through wardrobe and an ensuite that includes double vanities, a bath, and a dedicated dressing table.

[smartcode_project:default project_id=342 project_image_fid=357508]

The mezzanine level introduces a second layer of living, rather than simply additional bedrooms. Two large bedrooms with built-in robes are positioned alongside a central bathroom, while a secondary lounge and study area create a self-contained zone suited to children, guests, or extended family. A large storage room further supports long-term usability, addressing a common shortfall in apartment design.

This separation of levels is central to how the residence functions day-to-day. It allows the lower level to operate as the primary entertaining and living space, while the upper level provides privacy and flexibility. The result is closer in feel to a townhouse or standalone home, but with the benefits of apartment living, security, and low maintenance.

[smartcode_project:default project_id=342 project_image_fid=364553]

Candela is close to 80 per cent complete, with Ironside delivering construction ahead of its expected October 2026 completion. The development comprises 58 residences, with a strong owner-occupier profile and a mix of one to four-bedroom apartments and loft-style townhouses.

Candela has exclusive access to private amenities, including a residential lounge and rooftop terrace. A charming café and a lifestyle wellness centre are located on the ground level, designed to foster community connection and extend the living experience beyond individual apartments without competing with the scale of homes like Lustre.

Candela, positioned in the heart of Ivanhoe Village, reinforces the practicality of the address. With a Walk Score of 90, residents are within immediate reach of cafés, retail, parklands, and Ivanhoe Station, while also benefiting from proximity to established schools and healthcare services.

[smartcode_project_cta:default project_id=342]

Inside Lustre: Grand Residence 3.05 at Candela Ivanhoe

<a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;

Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.

Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.

[smartcode_project:default project_id=136535 project_image_fid=288420]

Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.

A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.

Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.

Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.

[smartcode_project:default project_id=136535 project_image_fid=361030]

Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.

“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.

“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”

Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.

[smartcode_project:default project_id=136535 project_image_fid=288412]

Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.

Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.

With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.

[smartcode_project_cta:default project_id=136535]

Elsternwick Gardens' wellness-first design strategy

Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.

Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.

Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.

[smartcode_project:default project_id=135546 project_image_fid=363510]

Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.

Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.

The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363512]

Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.

“Amenities were at the forefront of our decisions,” Laverty said.

“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.

“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363514]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.

The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.

[smartcode_project:default project_id=135546 project_image_fid=363511]

Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.

“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;

“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”

Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.

[smartcode_project_cta:default project_id=135546]

Red & Co unveils amenity-rich Como development in Varsity Lakes

Loan Application

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EXPERT OBSERVER
Ask a homeowner how long it took them to fill out their home loan or refinancing applications and, chances are, you’ll get an exasperated “12 hours” as a response – even when the reality is more like two hours.      
The way Australian consumers interact with the property market is shifting, with savvy consumers looking for new ways to get on and climb up the property ladder. But one thing that never seems to change is the ‘grudge’ element of the application process, or the anxiety that a home loan can bestow on a household.
Navigating the shifting lending landscape
Housing affordability is a top concern for most Australians, second only to cost of living and health and ageing. Three quarters (75%) of consumers say home ownership feels more difficult than 10 years ago, and 59% expect it to be even more difficult in another 10 years.
This concern is understandable in the face of harsher scrutiny of financial liabilities, more stringent income and expenditure requirements and stricter credit criteria from banks and lenders. And the anxiety of buying or refinancing doesn’t end when homeowners get their loan approved – consumers are bombarded everyday with so many offers, deals and financial life hacks that it’s almost impossible for them to be sure they’re on the best rate.
As the dreams of owning, renovating or upsizing a home become more challenging, consumers are looking to looking for alternative financial partners, who are keeping in step with the shifting lending landscape and offering innovative new products, more flexibility and competitive rates. 
These partners are increasingly non-bank lenders (online lenders, neobanks and credit unions) with better fees, lower rates and a more personalised service compared to established mortgage lenders, who are failing to keep up with changing consumer needs.
 How are customers forging the future of home ownership?
The reality is, everyday families have always been underserviced – becauseof their geographical location, not having the levels of wealth that demand personal attention, or simply because their broker or lender doesn’t contact them regularly enough. Unfortunately for this group of consumers, while they’ve been largely ignored by their banks and lenders, they’ve also been wasting a collective $4bn a year on unnecessary home loan interest payments.
The only way to level the playing field is for the consumer to take back control. Consumers who have stayed on the same loan for years are being hardest hit by the ‘loyalty tax’, while new or more proactive customers are offered more attractive loans. This group would greatly benefit from refinancing – but most people don’t have the time, knowledge or energy to monitor the markets every day to make sure they’re still getting the best deal.
This is where technology comes into play. The advent of fintech has not only started levelling the playing field, it’s also made homeowners more aware of what they’re missing out on. Slowly but surely, uno is seeing consumers trying to take a more active role, refinancing more often and trying to counteract their financial anxiety.
This is a huge task for consumers to take on alone. Luckily, they don’t have to. uno’s loanScore tool, for example, gives consumers free access to the same kind of service a personal banker would provide – assessing their loans in real time, letting them know where they stand and making it easier to act when they’re ready. Essentially removing the anxiety of not knowing whether you’re on the right deal, for the entire life of the loan.
For established players, ignoring the changing attitudes and behaviours of consumers won’t remain an option for long. For new entrants, opportunities abound.  
Anthony Justice is the CEO of <a href="https://loanscore.unohomeloans.com.au/" target="_blank">uno Home Loans</a>.
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jrobinson-rf4aSBido9

Levelling the home loan playing field: Uno Home Loans

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GUEST OBSERVER
How truthful are we when it comes to negotiating loans in Australia?
With increasing pressure on the housing market, some of us might be tempted to stretch the truth to secure a mortgage on our dream property - but research shows that this practice can have serious repercussions.
Recent news reports have alerted borrowers to the dangers of “liar loans”, based on the findings of a new UBS research study. A liar loan is a no-documentation loan that is approved on the basis of unverified and possibly false information about income, assets or capacity to repay.
In the United States, where many loan applications have been approved without any information on the borrower’s income and assets - these liar loans have been implicated as one of the reasons for the global financial crisis.
Should we be worried in Australia?
The UBS study found that a third of Australian mortgage borrowers reported being “not factual or accurate” in their mortgage applications. Being “not accurate” is not the same thing as being a “liar”. However, we need to be aware and pro-active to avoid poor standards and practices.
They further estimate that there is roughly US$500 billion (A$657.95 billion) worth of factually inaccurate mortgages on banks’ books in Australia. This is worrying, because it could mean that borrowers are taking on bigger debts than they can actually afford, falling into financial stress or even losing their homes.
The Australian situation
In Australia, when borrowers apply for a mortgage they need to provide documentation that verifies their employment history, creditworthiness, and overall financial situation. Borrowers are required to provide a payslip or most recent tax returns, and show that they have been employed in the same job for at least 12 months.
Other documentation may include: credit card and bank statements; sales contract; confirmation of rental income if purchasing an investment property; and more. The mortgage originator may perform credit checks and bankruptcy or default searches.
Some mortgage borrowers may not be required to provide much documentation if they are existing clients of the bank and already have a strong credit history.
In my research I found that 88.8% of mortgage applicants were existing customers of the bank where they apply for a mortgage, and had been so for 9.3 years on average. But low documentation loans exist for self-employed borrowers.
Where accuracy of mortgage applications becomes difficult to determine is when estimating the expenses of the household. Mortgage applicants are asked about their monthly expenses to assess whether they can service the debt without major stress. Here, applicants may be “mostly factual and accurate” or even “partially accurate” when trying to calculate their monthly expenses. After all, how many people actually keep accurate and up-to-date spreadsheets of all their expenses?
Debts outstanding with other financial institutions or family and friends may also be misreported. In addition, mortgage lenders who receive commissions linked to loan size have incentives to overestimate borrower’s incomes and underestimate expenses.
Australian version of liar loans?
These arguments do not suggest that there is no “lying” or “truth hiding” in mortgage applications in Australia, but that it may not be comparable to the trend of “liar loans” seen in the US.
More importantly, banks do not rely only on their clients’ word. Banks estimate monthly expenses and uncommitted income for their clients based on borrower characteristics and solid financial records.
Data from previous research reveals that banks estimate on average A$1,637 more on monthly expenses than applicants report. Based on the bank’s calculations, housing investors underestimate their monthly expenses by A$1,932 on average, while owner-occupiers underestimate by A$1,560 on average.
Similarly, mortgage applicants report their monthly uncommitted income to be on average A$702.5 more than what the bank estimates it to be. Housing investors only overestimate their monthly uncommitted income by A$174 on average, while owner-occupiers overestimate by A$840 on average.
Due diligence required from both banks and borrowers
Research finds that mortgage features (for example fixed or adjustable rates, maturity, loan-to-value ratio, and so on) help borrowers select mortgage products that are affordable and safer for them, with the guidance of mortgage lenders and brokers.
The research further finds that lenders should make sure that borrowers have the financial capacity to repay their loans out of income or by selling assets under plausible conditions, and not by relying on the value of the collateral.
Mortgage delinquency and default may rise due to excessive risk taking in mortgage lending combined with deteriorating economic conditions; or due to falling income and rising unemployment during a housing downturn. This later case is more likely the potential threat in the Australian current environment.
The Australian Prudential Regulatory Authority (APRA) and the Reserve Bank of Australia (RBA) perform stress tests to check the financial system’s resilience. Along with APRA’s macro- and micro-prudential regulations, some lenders are introducing higher requirements and credit restrictions on potential borrowers.
These include obtaining more information on the clients, which helps assess credit and default risks and helps design and target financial products to specific type of borrowers. There is however risk of mortgage discrimination.
More careful monitoring needed
Mortgage risks often relate to mismatches between the products used by households and their financial capabilities and ability to bear risks. For that reason, mortgage product characteristics should be monitored carefully both by banks and borrowers.
The Organisation for Economic Co-operation and Development (OECD) suggests that financial authorities should make sure lending standards are sound, both in the banking and non-banking sectors. It is important that banks do not face incentives encouraging excessive risk taking.
<img src="https://counter.theconversation.com/content/87073/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Requiring more transparency, reinforcing consumer protection and financial education encourages sound lending and borrowing practices.
Maria Yanotti, Lecturer of Economics and Finance Tasmanian School of Business &amp; Economics, University of Tasmania.
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/how-liar-loans-undermine-sound-lending-practices-87073" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

How 'liar loans' undermine sound lending practices: Maria Yanotti

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National Australia Bank is tightening its rules for home loan applicants, with photo IDs and supporting documents in response to more regulatory scrutiny of lending practices by banks.
Mortgage brokers will be required to provide updated photographs for all existing NAB customers who take out a new mortgage with the bank. 
The lender will also need to provide a physical or scanned copy of a certified photograph, such as a driver’s licence, or a passport.
The bank will also require consent forms from the borrower, any guarantors, employers and the broker, according to The Australian Financial Review.
The new identity check rules are as a result of polices being rolled out by the Australian Registers National Electronic Conveyancing Council as it tries to tackle online fraud.
The rules are even tougher for interest-only borrowers as they will be asked questions about whether that type of loan is suitable for their needs, or whether a principal and interest might be better.
For principal and interest only borrowers, questions range from whether they are taking out the loan as owner-occupiers, or investors, and how they might cope with temporary income reduction, or a large expense item.
Interest-only borrowers will also need to disclose whether they will require additional bridging finance.
"It will ensure customers take out interest-only lending in the right circumstances, which is suitable for their needs," according to a bank memo cited by the AFR.
The bank had increased rates for mortgage holders making interest-only repayments in June, following other major banks.
NAB is also tightening credit policies, such as verification of bonus income and more closely scrutinising any regular deductions from PAYG income, such as superannuation salary sacrifice, in response to tougher regulatory requirements.
Commissions can be considered when it regularly tops up a base salary; or where it is consistent and regular amounts for a minimum of six months.
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jonathanchancellor-7SQnKwU6yx

NAB rolls out stricter rules on ID checks and credit history for home loan applications

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Renovation loan applications have surged over the past six months, highlighting the dilemma of housing affordability, according to home loan lender ME.
Applications for cosmetic loans rose 48% while structural loan requests grew 25% between January and June.
The average amount borrowers requested for structural-related loans such as new builds was $400,000.
For cosmetic-related loans such as kitchen and bathroom renovations, the magic number was $40,000, it said.
ABS figures also confirm renovation lending has reached a new seven-year high:
<a href="https://www.propertyobserver.com.au/images/2017/08/24/ME.jpg" target="_blank">Click to enlarge</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/2017/08/24/ME.jpg" alt="">
Even CommSec chief economist Craig James said last month that in trend terms, loans for alterations and additions of homes (renovations) hit 7-year highs. 
ME Head of Home Loans, Patrick Nolan said the trend towards renovation funding could be related to the high cost of housing.
“While many homeowners are still relocating, it is clear many are choosing to stay put to avoid the high house prices, and expenses such as stamp duty,” he said.
A majority of ME customers are using equity in their home to fund their renovations.
“Home equity is what’s left over when you subtract your home loan from your property’s current market value,” said Nolan.
“If you’ve owned your home for a number of years it’s likely you’ve racked up some impressive gains in home equity.”
Sydney property owners have the most equity in their homes, an average of $443,900 per property, compared to $276,845 in Melbourne and $203,813 in Canberra.
“If you’re ahead with loan repayments, you may be able to use redraw to dip into your equity,” adds Nolan.
“It’s a simple option but you are limited to the value of those additional repayments. Having a loan with an offset account can be an easier way to access equity.”
According to Nolan, renovation is a smart idea to use the equity in one’s home as it typically adds value to the property.
“In addition, quality home improvements can add to your lifestyle and save on the cost and hassle of relocating to a new home.”
He said it was a good idea to check your suburb before spending a bomb on a makeover.
“To avoid spending more on the renovation than the value it adds to your home, consider the market in your area to be sure your improvements will fit in. Adding a fourth bedroom for instance, can make sense if you live in a family-friendly suburb, less so if you’re in an area popular with young singles.
“Next, put your hard earned cash to work where it will deliver the greatest benefit. High quality kitchen and bathroom renovations almost always add value to a property because they have broad appeal. The same can’t be said of outdoor spas or swimming pools, which can be high maintenance and don’t always deliver a fiscal return.”
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ME bank sees spike in renovation applications

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“A clear and concise marketing plan that will deliver the projected return”
Sounds simple…. yet we see so few doing it well and most don’t do it at all! For the most part, the key elements of a loan application are well understood by most developers and don’t vary much. Fundamentally they comprise: 
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<li>
Your financial position and credit worthiness: these are what they are and you can’t gild the lily trying to make them appear better than they are (although some try and fail);</li>
<li>
Gross realisation values and project expenses: completed product prices, land value and associated build costs are all fairly defined values. They will be determined by the market (via pre-sales and tenders on the build job) and certified by the relevant market experts (valuers and QS/engineers);</li>
<li>
The project team and past experience: again, these are relatively pre-defined components of your finance application and while you can enhance them with the introduction of appropriate expertise and testimonials, for the most part the key components have been locked in by the time the application is submitted;</li>
<li>
The capital structure and project feasibility: the combination of debt, junior debt and equity is generally driven by how much equity you have or choose to contribute to the transaction, and the project feasibility draws on the known elements of costs and end values and the time required to undertake the process. While many try and rush this part of the process, the one thing you can’t buy is time, but if you understand the market you are operating in, you can use it to your advantage!</li>
</ul>
As lenders/investors contemplating financing and/or investing in your next project, we would argue that the key element most often missing from applications we see, and the one that you should arguably have the most influence over, is explaining to us how and to whom you are going to sell the product. 
And it is not just your ability to sell the first 60% of the project in order to repay our funds that is critical, but how you will sell the last unit of stock, which represents your profit because that is what will convince us that you fully understand the deal you want us to invest in. So let’s look at what we actually want to hear/read about:
<ul>
<li>
Where will the demand for your product come from? Too many developers fail to understand the market dynamics of supply and demand and who will be the buyers; 
</li>
<li>
The second part to who, is “why” will they buy it? Why does your product meet the identified demand and how have you gone about satisfying yourself this is so? Again, too many developers follow the herd. What we as financiers/investors want to see is a considered approach based on an understanding of the market and economic factors driving the product decisions. This doesn’t have to be a costly exercise with massive reports. Quite simply, we want to see that the developer understands the markets dynamics at play in the area he is choosing to develop, and that he has created a product designed to meet the relevant drivers;
</li>
<li>
Why is yours better than the one down the road? Again, this is simply another way for you to demonstrate that you understand what the market wants and what the competition is doing. Frankly, if you don’t know the answer to these questions you should be seriously reconsidering why you are a developer.
</li>
<li>
What will they be willing to pay for it? And can you show evidence of similar product being purchased for that dollar value. Often the formal valuation report will be a precondition to settlement, and an approval will be required before it is produced. In its absence, we are looking for evidence to support the proposed Gross Realisation values in your feasibility. An ability to point to recent and relevant market sales in support of your assumptions is another way of demonstrating your professionalism;
</li>
<li>
How much will it cost to secure the sales and how will they be funded? In order to attract these buyers, marketing collateral, and an on-site sales office, sales agents salaries, marketeers fees up front and back end are all important considerations which many developers pay minimal consideration to, often because they do not fully understand the issues involved. We cannot stress enough just how important these elements of the deal are, and how your understanding of them influences credit and equity investment decisions. In particular, how you propose to fund them before and during the project construction phases are key to us fully understanding the real profitability of the project. 
</li>
</ul>
Simply put, more than anything else, if you can demonstrate a clear understanding of these marketing and sales related processes (and they are two very different beasts) you will get the attention of a lender or equity investor. Once you have our attention, it’s a much easier process to gain the approvals you are seeking. 
To find out more about which option best suits your next project, contact Dan Holden at HoldenCAPITAL on 0401 669 502 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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