Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Mortgage Brokers

<html><body>
EXPERT OBSERVER 
<div>The Hayne Royal Commission’s recommended changes to the mortgage broker remuneration model are well-intended but could cause consequences that ultimately leave the customer in a poorer position. 
</div>
<div>I urge the Federal Government to take great care in considering how this recommendation could be implemented, to retain the spirit of the change without severely affecting the broker industry. 
</div>
<div>Heritage Bank understands the need for financial services providers to have the best interests of customers as their top priority at all times, as that’s the central ethos of the customer-owned model. 
</div>
<div>However, banning commissions for brokers could actually be detrimental to customers, and give the big banks a free hit. 
</div>
<div>We do not support increasing the costs for customers to obtain a home loan, in the form of a customer-paid fee-for-service, and worsen the current affordability crisis for those customers already struggling to afford a home. 
</div>
<div>Nor do we condone the significant impact to competition that these measures are likely to create. 
</div>
<div>It is crucial that we maintain competition in the sector. The Royal Commission recommendation would create severe challenges for the broking industry and give more power back to the major banks. 
</div>
<div>The broker channel is vitally important for smaller lenders that do not have the large distribution footprint of the major banks. 
</div>
<div>At Heritage, we rely on brokers to grow our member base nationally, particularly outside of our home state of Queensland. 
</div>
<div>A major contraction of the mortgage broking industry would reduce competition and put the big banks in an even more powerful position in the home loan market. 
</div>
<div>We are a regionally headquarted bank, based in Toowoomba, and understand the importance of brokers in both regional areas as well as in capital cities in being able to support consumers’ access to competitive home loans. 
</div>
<div>Customer-owned banks such as Heritage operated in a fundamentally different way to the banks that were found to have systemic issues during the Royal Commission. 
</div>
<div>One of the key findings of the Royal Commission was the motivation of greed, both for personal gain and for higher profits for the business and shareholders. This is where customer-owned banks are fundamentally different - our members are our owners, and as such, profit is not our highest priority. 
</div>
<div>Heritage Bank is committed to supporting the mortgage broker channel, and we will continue to work with all industry participants to lobby for competition and viability of the broker channel to be maintained.</div>
<div> </div>
<div>Peter Lock is the CEO of Heritage Bank.</div>
</body></html>

jrobinson-rf4aSBido9

Broker recommendations could impact customers and competition: Heritage Bank boss Peter Lock

<html><body>
GUEST OBSERVATION
The Netherlands consumer-pays fee-for-service mortgage broking model recommended by Commissioner Hayne in the Banking Royal Commission has proved to be a huge failure for consumers in the Netherlands since its introduction in 2008.
The only winners are the big banks.
According to a 2017 report, entitled Banking in the Netherlands, obtained by Loan Market Group, the total number of banks in the Netherlands decreased from 99 banks in 2007 (when the market still operated on an upfront and commission model) to just 44 banks in 2017 (nine years after fee-for-service was introduced).
Mortgage broker commissions from lenders were completely banned in 2013, after being phased out from 2008.
<a href="https://www.statista.com/topics/3442/the-banking-sector-in-the-netherlands/" target="_blank">The Statista report</a> found the size of the banking sector as a whole in the Netherlands decreased by almost half. The total number of bank offices was approximately 3,400 in 2008. In 2016, this was less than 1,700.
The report categorised the Dutch banking sector as “one of the most concentrated in Europe”.
Additionally, Moody’s Investment Services 2018 report found one of the biggest Netherland institutions ABN Amro’s net interest margins have grown steadily since 2010.
In comparison, the Australian marketplace net interest margins of major and regional banks have been on a steady decrease since brokers were introduced into the sector in the mid-1990s, according to the Reserve Bank of Australia.
Loan Market Group believes this data demonstrates a pronounced lack of competition in the Netherlands, significantly contracting the banking sector, with mortgage brokers no longer having the ability to introduce borrowers to numerous products offered by the smaller banks and lenders.
This just further demonstrates the Netherlands model is a terrible outcome for Aussies.
The model has resulted in fewer lenders and fewer options for Dutch consumers. I fail to see how this is the best option for our marketplace.
The model that has been held up as the roadmap for the Australian mortgage market has been proven to result in less competition and the highest concentration of big banks in Europe.
This means customers have less choice, pay more fees and will get stuck in a home loan because the cost of changing will be too much as they’ll need to fork out each time they want something changed.
The only guarantee that will result from the Dutch model is that customers will pay more and will be locked into their loans.
Some of the key findings and insights from the report include:
●  The Netherlands experienced a massive reduction in the number of lenders from 93 banks in 2008 (when fee-for-service began) to just 44 in 2017.
●  The top five big banks in the Netherlands (including ING, Rabobank and ABN Amro) now control 83.8% of the Netherland’s marketplace.
●  Total number of bank “offices” or branches fell from 3,421 to just 1,619 between 2008 and 2017.
It is very clear the real reason the Big Four Banks in Australia are pushing for the Netherlands model. It will effectively kill off the competition coming from smaller lenders and banks and result in the banks having the lion’s share of the pie again.
This is definitely not the best outcome for customers by any stretch. Not only do customers in the Netherlands have less choice than before the upfront payment was introduced, but they are also paying fees. Fees that Australians don’t currently pay.
It is astounding people have spoken about the Netherlands model with such enthusiasm when we were able to find this solid research very quickly and easily online. It would be nice to think the Commissioner and his team might have done more research than they have, before turning the mortgage industry on its head and recommending a financially detrimental solution for everyday Aussies who are looking for the best home loan solution.
In addition to the reduction in competition, Australian consumers may soon have to pay a fee to get a mortgage. That may well be an option the first time they look for a loan, but it will also be payable if they want to refinance, or change their loan arrangement. Unless the savings are really compelling, switching won’t be worth their while financially, leaving them languishing with whatever product they already have.
As in the Netherlands scenario, it feels very much like the banks are trying to reintroduce exit fees by stealth, making the idea of switching home loans deeply unpalatable to consumers.
Some may suggest that the banks will reduce their fees accordingly, but what in the last 14-months of Royal Commission hearings would give anyone confidence that the banks do anything but look after their shareholders?
Background to the mortgage industry in the Netherlands:
●  In 2008, the Netherlands Ministry of Finance slowly started changing the payable upfront and commission amounts. Starting with 80% and 20% spilt then to 70% and 30% and then to 50% and 50%.
●  In 2011 the regulator announced its attention to completely ban commissions by the end of 2012.
●  The ban on mortgage broker commissions came into place at the beginning of 2013.
●  Borrowers now pay a fee-for-service
Sam White is the Loan Market Group Executive Chairman.
</body></html>

j.ballantyne1990-6AQqhLzZaK

The Netherlands model for mortgages is a complete failure: Loan Market's Sam White

<html><body>
EXPERT OBSERVER 
<div id="post-body-6541198538703456871" class="post-body entry-content">
<div>What a win it's been for the major banks last week.</div>
<div> </div>
<div>Hearteningly there's been sensible commentary aplenty about the misguided recommendations on the structure of mortgage broking, which don't make any sense with a 'real world' hat on. </div>
 <div class="separator"><img src="https://3.bp.blogspot.com/-pL1yB52iNFg/XF1iUBBmg3I/AAAAAAAAuWU/6sYwVipdspstnDR_2fu2Cp6ffJpVlmJcQCLcBGAs/s640/CBA2.jpg" width="640" height="364" data-original-height="800" data-original-width="1403"></div>
 <div>
As prominent industry stalwart John Manciameli has pointed out, imagine the outcry when banks raise mortgage rates off the cuff by 50 basis points on 'funding cost pressures' (or whatever) and customers have to pay another $5,000 fee to refinance out of their loan (leaving the borrower paying $10,000 just to get in and out of the deal). Just one of a thousand potentially daft scenarios. 
</div>
<div> </div>
<div>Everyone agrees that there should be a 'best interest' imperative for mortgage brokers. </div>
<div> </div>
<div>But commission structures should be left alone, and the scenarios being discussed would just load even more power into the four major banks. If broking ain't broke...</div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
</div>
</body></html>

pwargent-M4siyDbqQY

Banks flying high; mortgage brokers thrashed: Pete Wargent

<html><body>
EXPERT OBSERVER
Labor's Bowen and Shorten had insisted they'd adopt all of the Royal Commission recommendations sight unseen - a pretty much ill-advised idea when you think about it - ostensibly because they wanted to be seen as 'tough' on the banks, but just as likely to put pressure on the government to clamp down on lending and credit further.
What the ALP think-tanks hadn't foreseen is the major banks getting off relatively lightly and some cataclysmic reforms recommended for the mortgage broking industry, especially in terms of commission structure.
The initial reaction from Bowen, on his Twitter feed, seemed to misread the mood:
<div>
<div class="separator"><a href="https://2.bp.blogspot.com/-dsgb5a4Mt4Y/XFyPFXaKgdI/AAAAAAAAuWI/vgdeNgBxAHM9NNI2GOoMwVEAPG3HpLHdQCLcBGAs/s1600/CB.jpg"><img src="https://2.bp.blogspot.com/-dsgb5a4Mt4Y/XFyPFXaKgdI/AAAAAAAAuWI/vgdeNgBxAHM9NNI2GOoMwVEAPG3HpLHdQCLcBGAs/s640/CB.jpg" width="640" height="122" data-original-height="138" data-original-width="721"></a></div>
<div class="separator"> </div>
<div class="separator">The Coalition (and apparently even the Reserve Bank Governor) believe that ramming through such wholesale changes to the broking industry warrant caution, since they'd reduce competition in the market, line the pockets of the 4 major banks as they carve up more market share, and decimate the mortgage broking industry, putting thousands of brokers out of business.</div>
</div>
<div>
 My view is that overwhelmingly brokers add value to consumers, and help borrowers to navigate the maze. Some of the information put forward by the banks during the hearings was misguided at best, misleading at worst. Although naturally a 'best interest' test must be enforced, the existing model is superior to a potential fee-for-service alternative.</div>
<div> </div>
<div>It'll be interesting to see whether Bowen is so in favour of implementing all recommendations now.</div>
<div> </div>
<div>If I was a betting man I'd say the ALP will demur on this point, or give a waffling or non-committal answer...else they'll face instantly losing the votes of 16,000 brokers. </div>
<div> </div>
<div>Of course, they might well decide that they don't need those votes anyway given signals from internal polling, but let's see what their response is, if any. </div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
</body></html>

Royal Commission backfires on mortgage broker reform: Pete Wargent

<html><body>
Chris Joye's AFR column says the biggest winners from the royal commission are demonstrably the big banks while the largest losers are Australia’s mortgage brokers.
"Indeed, the top end of town have done an amazing job convincing everyone that brokers should be made the “fall guys” for their own deeds, surreptitiously fattening their profits, despite no evidence of pervasive misconduct," Joye noted.
Joye noted the single biggest cost a lender incurs when selling a home loan is the 0.6 per cent upfront commission and 0.2 per cent annual trailing commission that they pay to a mortgage broker.
Mortgage brokers currently settle around 59 per cent of all mortgages in Australia.
"If the royal commission has its way and/or Labor comes to power, these commissions will disappear completely, destroying the existing business models of the 20,000 mortgage brokers (and their employees) that rely on this revenue.
"This is horrific news for aggregator businesses that have built up large networks of brokers licenced by them in exchange for a share of the revenue they generate."
The only hope the latter have is to quickly shift into lending and securitising themselves, he says, adding the ban on broker commissions will radically reduce bank and non-bank mortgage distribution costs, which is "ironically going to be a huge profitability fillip for funders."
According to CBA evidence cited by the commission, a bank typically has to pay a mortgage broker $6,600 in fees to sell a loan via this channel, which accounts for almost 60 per cent of all residential mortgages written in Australia.
Under the commission’s proposal, these costs will disappear and be shunted on to consumers, whom CBA says should be prepared to pay about $2,310 for the service.
Brokers are also set to be regulated for the first time under the much stricter future of financial advice (FoFA) laws that apply to planners.
Mortgage brokers will be subjected to a "best interests" duty.
The government has said it will move to ban trailing commissions from July 2020, after the royal commission final report declared the chief value of trail commissions to the recipient, "to put it bluntly, is that they are money for nothing".
The government said it would not immediately adopt Commissioner Kenneth Hayne's call for upfront commissions to also be banned and be replaced by a customer-paid fee, which Labor indicated it would support.
 
</body></html>

Mortgage brokers are the fall guys for the big banks' misdeeds: Chris Joye

<html><body>
<div class="b-article_blog__wrapper__intro">
Mortgage brokers settled 59 per cent of residential home loans in the 2018 September quarter, which was up from 53 per cent in the same quarter of 2017.
The escalating credit crunch implemented by the big banks in the wake of the banking royal commission triggered the largest year-on-year increase for any quarter over the last four years. 
</div>
<div class="b-article_blog__wrapper__content">
The data from CoreLogic also revealed that settled broker volumes slipped between the September 2017 and September 2018 quarters from $51.77 billion to $50.19 billion, a three per cent fall.
Mortgage brokers provide their potential clients access to a panel of 34 lenders on average.
<div class="b-article_blog__wrapper__intro">
The new statistics reporting a sharp rise in broker market share came from the research group Comparator, a CoreLogic business.
Deloitte Access Economics issued a report last July which said the industry employed an estimated 22,215 people, which included 14,230 active brokers and 7,985 support staff.
Mortgage brokers, on average, have 13.8 years of experience in the industry.
<div class="page" title="Page 13">
<div class="layoutArea">
<div class="column">
<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/2019/1/17/MORTGAGE%20increase.jpg" alt="">
</div>
</div>
</div>
</div>
</div>
</body></html>

Australian mortgage brokers are settling 59 per cent of residential home loans

<html><body>
Melbourne couple Mrs Shilpa Karandikar and Mr Shrikrishna Karandikar have pleaded guilty in the Moorabbin Magistrates Court following an ASIC investigation.
On 5 December 2018, Mr and Mrs Karandikar, of Clarinda, Victoria, separately pleaded guilty to offences against the National Consumer Credit Protection Act 2009 (National Credit Act) which include breaching an ASIC banning order.
Mrs Karandikar was convicted of engaging in credit activities contrary to a four-year ASIC banning order against her, and sentenced to a fine of $5,000 (out of a maximum fine of $17,000).
Mrs Karandikar admitted to having prepared home loan applications to the National Australia Bank for three customers between July 2014 and August 2015 through her husband’s former mortgage broking business, Siddhi Vinayak Finance Pty Ltd. The 2014 banning order was based on Mrs Karandikar having submitted false documents to secure a $243,000 home loan for a customer (<a href="https://asic.gov.au/about-asic/media-centre/find-a-media-release/2014-releases/14-173mr-asic-bans-melbourne-mortgage-broker-for-submitting-false-documents/" target="_BLANK">14-173MR</a>).
In sentencing Mrs Karandikar, Magistrate Crisp indicated it was a serious matter as Mrs Karandikar was engaging in the exact activities she had been banned from doing.
Mr Karandikar was convicted of giving false documents to the National Australia Bank, stating that he had completed customer identification forms in the presence of the home loan applicants, when he had not. Mr Karandikar was sentenced to a fine of $5,000 (out of a maximum fine of $17,000)
Mr and Mrs Karandikar were permanently banned from engaging in credit activities in December 2017 (<a href="https://asic.gov.au/about-asic/media-centre/find-a-media-release/2017-releases/17-434mr-asic-permanently-bans-melbourne-couple-for-contravening-an-asic-banning-order-and-engaging-in-misleading-and-deceptive-conduct/" target="_BLANK">17-434MR</a>).
Background
The National Australia Bank identified the misconduct and reported it to ASIC.
The maximum fine and term of imprisonment for each charge is:
<ul>
<li>s 82 of the National Credit Act (100 penalty units and/or two years imprisonment;</li>
<li>s 160D of the National Credit Act (100 penalty units and/or two years imprisonment).</li>
</ul>
Prior to 1 July 2015, a penalty unit was $170. A bill to increase the penalty units for these types of offences, and others, is currently before Parliament.
</body></html>

Victorian mortgage broker banned by ASIC for providing false home loan documents to NAB

<html><body>
A non-bank finance group is making a pitch to mortgage brokers, hoping to double its clientele in the wake of the Royal Commission and predicted change of federal government.
Chifley Securities’ Principal Dominic Lambrinos said that its current lending to developers and landowners extends to $2 billion and it works with 3,000 brokers.
Lambrinos said it wants to double the number of brokers it works with over the next year.
“There are more than 10,000 mortgage brokers across Australia and many of them will not have a viable business or career if trail commissions are phased out,” he said.
“Shorter term lending by non-banks like Chifley Securities provide upfront commissions of up to 1 per cent, with this to rate to be paid again when the loan rolls over.
Lambrinos said the company pays commissions on loan it provides, as well as settlements in up to two weeks, incentives for referrals and training.
“Mortgage brokers can make an easy transition to commercial property lending through our training &amp; support programs and gain another income flow, which sadly I expect will be required with the expected changes to trails,” he said.
“We are also seeing an explosion in the number of private investors entering the market, especially large and small foreign funds, which are keen to finance projects and prepared to work with Chifley Securities and it’s brokers to gain access to this asset class.
“This is creating a pipeline of loans which brokers can tap into by diversifying from their traditional mortgage base.”
</body></html>

Non-bank group makes pitch to attract mortgage brokers

<html><body>
GUEST OBSERVATION 
The news has been awash with stories of falling house prices, less sales, lower clearance rates and more stringent lending policies in recent months. But despite these ongoing market and regulatory challenges, the Australian broking industry is in a remarkably healthy state.
Recent data from the MFAA Industry Intelligence Service (#6) shows brokers have written more value of residential home loans over the past year than since data started to be collected in 2013. With sales of homes beginning to slow across Australia, but the value of mortgages originated over this period, it creates an interesting dynamic within the mortgage broking market. Why is this occurring?
CoreLogic, which performs valuations on behalf of leading Australian banks and financial services companies, helps shine a light on this market dynamic via the statistics of why valuations were ordered — approximately only 25% of property appraisals over this period were for purchases, 5% for construction and a huge ~70% were for refinance (including restructure, top-up and new product type) of existing loans. Transaction numbers may have declined nationally, but brokers are still very busy.
In fact, the growth of brokers over the past couple of years means there is more competition in the industry than before — and that gives customers greater choice in who they engage with. So, in an increasingly competitive yet complex market, how can you differentiate your business?
1. Look broadly across your lender panels and prepare before application
In a tighter regulatory and more focused credit risk environment, lenders are needing to make policy decisions on which clients and security they are willing to provide lending for. Borrowers are under greater scrutiny, and lenders are asking for more evidence around their ability to service the loan. You need to do more research and keep up to date with policy changes for the lenders you deal with. It’s not just the simple things; for example, are there postcode restrictions; what are the acceptable securities; what are the differences for investor, owner-occupied; and what type of product is your customer looking to utilise — interest-only, line of credit or P&amp;I. All these will most likely mean brokers have to navigate in a matrix environment.
If you haven’t yet done so, it could be worth getting to know some of the more specialist lenders. The MFAA IIS report shows the growth off non-ADI lenders growing substantially and consistently over the last couple of years, and knowing the alternative value propositions is important to giving your customer the best possible result.
Another standout result in the recent data is the decrease in conversion rates — that is the percentage of loans that are applied for which settle. Valuations play an important role, particularly in higher LVR business. If you are not running a property report and getting some understanding of value before the submission of the application, you are potentially costing yourself time and money as well as creating a negative customer experience. As a professional, managing expectations and setting your client up for success is critical.
2. Sharpen your value proposition
Position yourself as a credible source of information and show your clients you’re knowledgeable about the things they care about. For example, if you’re dealing with investors then they will most likely be interested in rental returns and yields, capital growth and want to know more about the markets they are looking to invest in. You can no longer generalise your approach; you have to personalise your interactions if you want to win and keep the business.
With so much information freely available to your customers, you need to be a step ahead. Personalisation, knowing the markets that you operate in and where your customers can give you the edge over those who don’t.
Check out state performance benchmarks by using tools such as the MFAA’s Industry Intelligence Service Summary. Are you as good as the average or better? If you are better, what are you doing to stay ahead? Arming yourself with knowledge can give you insight into where you can improve and help you build your value proposition.
3. Engage with your customer base long-term
A new mortgage should be more than just a transaction, but rather, the start of a long-term relationship with your customer. With great service and personal service, this can reward you with repeat and referral business in the future. Don’t just do the minimum and keep in touch with your client through mass, generalist non-value add information — make it personal, make it insightful, make it better than your competitors.
Consider tracking the local property market so you’re aware when your client puts their home up for sale or for rent. Track market activities that you can then use to engage with your clients. Know when your clients are in high equity positions. Remember when they said they “want to renovate in a couple of years” or when they told you an investment property was a dream in the future. The little things are what will make a difference in a competitive market. It’s not just when your client sells that you have risk of losing them as a client. Remember that more valuations are ordered for refinances than sales — is that your client talking to another broker or lender? 
Buying and refinancing property can be stressful for borrowers, particularly when the housing market is challenging. There is regulatory focus, countless news articles about how hard things are and when lenders are changing their policies — what better time for you to make the most of the situation and provide professional, insightful and valuable services for a great customer outcome.
Matt Carlson is CoreLogic's senior leader for western region and broker solutions.
</body></html>

How to position your business in a competitive broker market: Matt Carlson

<html><body>
The Productivity Commission has recommended an overhaul of the way the mortgage brokers get paid.
Trail commissions should no longer form part of a broker's remuneration structure, the Productivity Commission has recommended to the government.
While the Productivity Commission (PC) has not recommended that consumers pay mortgage brokers directly through fees for service — as was mooted in the 640-page draft report — it has put forward a recommendation for trail commissions to be removed.
The PC's outgoing chair, Peter Harris has suggested trail commissions were a conflicted form of remuneration that creates "perverse incentives" for brokers by "rewarding" them for keeping customers in their current loan.
"Trail commissions must be abolished — as they have already been in other parts of the financial system," the report said.
But brokers argue trail is needed to assist clients post settlement with discharges, pricing requests, product changes, splitting loans, fixing loans, IO conversions, construction progress payments, phone calls on future deals that never proceed, general advice and loan reviews.
"The clients are not paying for the trail, the bank is," one broker said.
"I have never had a client say, "I would rather you charge me than you receive trail."
The commission's final report into Competition in the Australian Financial System contains 11 rec'ommendations related to mortgage broking and home loans.
The report also described a cosy environment where the oligopoly enjoyed by the big four banks is the dominant feature that has allowed the major banks to keep prices elevated, provide inferior products and stop smaller competitors from growing.
It calls out "a blizzard of barely differentiated products" that create "the illusion of choice" as an example of the tactics deployed by the banks to maintain market share.
One recommendation would see APRA tasked with delivering data to ASIC, which would maintain a 'fuel watch' style website for mortgages.
The PC wants to scrap trailing commissions for several reasons, including their potential to add additional costs to all home loan borrowers regardless of which channel they choose.
The PC said it had not been able to prove this conclusively as "lenders were not forthcoming when we asked them to explain further the basis for aggregator ownership".
The PC lashed the banks for exploiting the structure of the market to the detriment of loyal customers, zeroing in on strategies such as opaque pricing and introductory rates as being symptomatic of a wider problem.
"The huge product variety combined with price obfuscation provides latitude for exploitative price discrimination, with associated profit opportunities for the relevant financial institutions," the report said.
"Typically, it is existing customers that get a poor offer, as institutions jostle to attract new customers with products that offer temporary benefits (such as discounted interest rates and fee-free periods)."
It found customer loyalty or inertia could add as much as 0.4 percentage points to the cost of a mortgage or up to $87 dollars a month.
"Approximately half of the average loan price that major banks charge is estimated to be a premium over the marginal cost," the report found. "Although there is no explicit encouragement for banks to cluster around a particular level of return or interest rate, their observed tendency to do so is a persistent feature of the market."
Prime Minister Malcolm Turnbull said the sector had a long way to go to restore its reputation and the government was on high alert for news of misconduct.
"We are determined to hold the wrongdoers to account and we are changing the law to make sure that banks do the right thing," he said on Friday.
</body></html>

Mortgage Brokers

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Mortgage Brokers

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News