The Victorian Government has secured the passage of the Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026, introducing a suite of reforms aimed at improving consumer protection and confidence in the apartment market.

Resilience Insurance, Australia’s leading Latent Defects Insurance (LDI) provider, has welcomed the move.

The LDI elements of the Bill passed with bipartisan support and now moves to the Legislative Council where debate and passage are expected later this month. It represents a significant milestone in the national shift toward stronger, longer-term protection for apartment buyers.&nbsp;

The reform would deliver practical benefits across the housing system. Apartment owners will have stronger protection if major defects emerge, developers and builders will have a clearer quality framework to work within, and the State will reduce the risk of serious building failures becoming a long-term financial and social burden for households, communities and government.&nbsp;

LDI helps support apartment delivery while providing stronger protection for buyers and encouraging better construction outcomes.&nbsp;

Resilience LDI provides apartment owners with 10 years of insurance-backed cover for major structural defects from completion, with direct claim access to the insurer. This means owners are not required to first pursue developers or builders through costly legal action before accessing protection.&nbsp;

Resilience Insurance has been operating in Australia since 2022 and has already insured hundreds of development projects covering many thousands of apartments across Australia.&nbsp;

At approximately 1.8 per cent of build cost, it is a cost-competitive alternative to the traditional two per cent Strata Bond, bond while delivering significantly broader and longer protection.&nbsp;

“The Victorian Lower House vote shows that reforms like this succeed when they are practical, evidence-based and supported by industry," says Corey Nugent, CEO of Resilience Insurance.

"Victoria is moving quickly on a reform that will make a real difference for apartment buyers, while supporting better building outcomes and greater confidence in apartment delivery.

“This is step one. We look forward to the Bill completing its passage through the Legislative Council and to working with government and industry to implement the framework effectively.”&nbsp;

Fast Facts: What is Resilience LDI?&nbsp;

<ul>
	<li>Resilience Latent Defects Insurance (LDI): Covers major structural defects for 10 years from completion.&nbsp;</li>
	<li>Consumer-first: Direct claim access, no need for lengthy legal action.&nbsp;</li>
	<li>Cost advantage: At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.&nbsp;</li>
	<li>Market leader: Resilience Insurance is the first approved LDI provider in NSW.</li>
</ul>

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 has passed the Victorian Lower House, putting Victoria on track to become the first state to legislate an industry workable LDI framework as a formal alternative to the Strata Building bond. 

Joel Robinson

10-year Latent Defects Insurance for new apartment buyers set to land in Victoria

Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.

Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.

There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" />

Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.

"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."

The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;

The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;

Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a>

Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a> 
&nbsp;

Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368853]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

First look: S&S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street

Mortgage Choice

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Accusations from Mortgage Choice franchisees accusing the aggregator of running a harsh business model and remuneration structure have triggered a promise to change its remuneration model.
Mortgage Choice released an announcement on the ASX yesterday in response to an investigation by Fairfax Media and ABC’s 7.30. The investigation had been looming for some time among tweets as franchisees readied to set up a fund to take legal action.
Towards the end of last year they agreed to commit $200,000, but put this on hold after Mortgage Choice said it would review the structure.
The media report outlined how the broker previously employed an up-front commission model and changed this to a performance-based model based on loan targets in the wake of the 2007-2008 Global Financial Crisis. 
But it never changing back to the original structure once the crisis had passed.
The recently appointed Mortgage Choice chief executive Susan Mitchell admitted the model was “outdated.”
In the ASX statement from company secretary David Hoskins, Mortgage Choice advised it would be working closely with franchisees about a more “competitive remuneration model”.
The statement said the purpose of this would be to “increase franchisee remuneration and reduce franchisee income volatility to allow them to grow their business and assist more customers with their home loan needs”.
CEO of Mortgage Choice, Susan Mitchell, said she anticipated the changes would support the long term sustainable growth of Mortgage Choice.
“We want to continue to help Australians with their financial services needs for many years to come and having thriving, growing franchisees that have the confidence to invest in their business is critical to achieving this.”
Mortgage Choice expects to finalise a new remuneration model in this coming July and implement an opt-in basis across the network in August.
Documents suggest almost half of Mortgage Choice’s franchisees were considering legal action to get a better and fairer remuneration scheme.
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Mortgage Choice saw its shares plunge 40 per cent on Tuesday after Fairfax and the ABC reported 173 of its franchisees were considering a fighting fund to take on the home loan giant. Shares were up 1 percent in Wednesday morning trade.
<a href="http://www.abc.net.au/7.30/" target="_blank" title="www.abc.net.au">On ABC’s 7.30</a>, a number of struggling Mortgage Choice franchisees spoke about having to sell their houses because of their financial struggles brought on by the business.
Franchisees are reportedly being pressured to sign $1.5 million in loans per month, much higher than the national average of any other company.
If brokers fail to meet that target, Mortgage Choice takes a greater section of the franchisee’s profit.
Melbourne franchisee Russell Chellew told the program he’s become physically sick since owning his own Mortgage Choice franchise.
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Mortgage Choices advised shareholder that change in the remuneration model does not affect the FY2018 cash result.
"Market updates will include guidance on a one off adjustment to the FY2018 IFRS result based on the change in the average payout rate to franchisees once this is known."
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Mortgage Choice moves quickly to quell franchisee revolt 

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First home buyers are delaying or missing the opportunity to get into the property market by not engaging a guarantor on their home loan, new data shows.  According to Mortgage Choice and CoreData’s Evolving Great Australian Dream 2018 whitepaper, just 4.9% of all first home buyers said they used a guarantor to purchase their property.  However, bucking the trend are home buyers aged 29 years and below, of which 21.8% had someone go guarantor on their mortgage. 
Mortgage Choice CEO Susan Mitchell said the data raises the question that many are divided on.
"Are first home buyers missing an opportunity to get into the property market by not engaging a guarantor?”
Currently, the average first-time buyer needs to put down approximately $100,000 in deposit to secure a property with the median dwelling value of $554,605.  “For many first-time buyers, the biggest hurdle they face is saving a sufficient deposit that amounts to 20% of the purchase price, and this has been made even harder by strong property price growth over recent years,” Ms Mitchell said.  The whitepaper found that 40% of buyers would need some form of assistance to enter the property market, as they had just 15% or less of the required deposit for a property. “The Government’s new plan to allow older Australians to stay in their homes for longer, as part of the ‘More Choice Longer Life Plan’ is likely to hinder the supply of available properties to those looking to buy their first home.," Ms Mitchell said. A variety of factors is making it increasingly difficult for people to achieve the traditional Australian dream, say 86.4% of people asked by Mortgage Choice. “One way first home buyers can get a leg up onto the property ladder is to access intergenerational wealth, created by the boom in the property market, and ask a parent to be a guarantor by offering their own home as extra security,” Ms Mitchell said.  “This strategy lets them get onto the property ladder sooner rather than later, and with a smaller deposit and has the added advantage of avoiding Lenders’ Mortgage Insurance, which can total thousands of dollars for cash-strapped first home buyers.”  The whitepaper research revealed that on a whole, 15.2% of prospective home buyers across Australia would have someone go guarantor on their loan. This figure dropped to 12.6% for females.  On a state by state comparison, Western Australia had the highest proportion of prospective buyers saying that they would have a guarantor on their mortgage, at 16.5%. They were followed by New South Wales at 13.9% and Victoria at 13.3%.  Of those who purchased with a guarantor, 77.2% said their  parents were their guarantor.  Ms Mitchell said it was important for buyers and their prospective guarantor to weigh up the pros and cons before making a decision.  “Having a family member go guarantor on a mortgage is not without risk and as such, no one should jump into the situation until they’ve given it considerable thought,” she said.  “If the first home buyer defaults on their home loan, the guarantor becomes responsible for paying their debt. This can be a significant financial impost for the guarantor as it can affect their ability to cope with their own day to day costs, which in turns compromises their financial wellbeing.  “Their own ability to borrow money will also be reduced after they agree to become a guarantor.  “As a result, it is very important for both the buyer and the guarantor to set clear expectations from the outset and think carefully about their future plans.  “If a buyer has a guarantor on a home loan, it is essential they speak with a qualified mortgage broker and a solicitor to protect both parties. A contract can be drawn up that clearly explains how the loan will be structured and what happens in the event that the borrower defaults on their loan. “It is helpful to note that a guarantor is not tied to the loan for its entire duration. Once a buyer has built up sufficient equity in their property, a guarantor can apply to be released from the loan, though this may incur a fee.  “Lastly, buyers should always look at their other options as a guarantor is not the only way that someone can purchase a property. A buyer can receive a one-off financial gift to help cover part or all of the cost of the deposit, which reduces the risk to a potential guarantor,” concluded Ms Mitchell.  
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Only five percent of FHB's using an intergenerational guarantor: Mortgage Choice

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John Flavell, chief executive officer at Mortgage Choice Limited, has stepped down from his role immediately after the appointment of Susan Mitchell as the new CEO.
Susan Mitchell was most recently chief financial officer.  John Flavell has been there for just over the past three years. Mortgage Choice Chairman, Vicki Allen thanked John for his leadership and efforts at Mortgage Choice during his tenure as CEO, "and wish him well in his future endeavors”. Ms Mitchell’s extensive experience and existing senior role within the Company meant she was very well placed to step into the CEO position. Ms Allen said she was delighted Susan has reconsidered her recently announced intention to pursue another opportunity and instead lead our business. 
"The Board has confidence that she has the necessary skills to lead Mortgage Choice. 
"She is a very talented executive and her in-depth experience with the company will ensure a smooth transition of leadership."
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jrobinson-rf4aSBido9

Mortgage Choice CEO John Flavell steps down

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GUEST OBSERVER
A majority of Australians are optimistic about the state of the property market and will continue to invest in this space, new research has revealed.      According to new data from Mortgage Choice, 64.3% of Australians believe the housing market will continue to perform the same as it has in recent years, if not better.  This data makes it obvious that the majority of Australians remain upbeat about investing in property and will continue to buy and sell dwellings. Over the past few weeks, we have heard endless commentary about an ‘inevitable slowdown’ in the property market.  According to data from CoreLogic, property price growth has started to stagnate in recent months. Over the three months to November, property prices grew just 0.4% across the combined capital cities.  As a result, many market commentators have started to panic and are suggesting that this is the beginning of the end. Some commentators have even gone so far as to suggest we could soon see a property price crash across some of the bigger markets, notably Sydney and Melbourne.  The reality is, property prices are merely stabilising after a few years of runaway growth. This stabilisation is something we have long expected.  The fact is, significant changes have been made to investment lending policy in recent months. Moreover, interest rates have been sitting at historical lows for well over 12 months and will continue to sit at historically low levels for some time yet. Both of these things have combined to take some of the heat out of the market. And while the heat has started to come out of the market, Mr Flavell said there were no signs to suggest a property crash was on the radar in Australia.  For a crash to occur in the housing market, there would need to be a number of economic factors at play.
Firstly, supply would need to be significantly high enough that it exceeded demand. Secondly, the cost of borrowing money would need to rise rapidly in a very short period of time, and unemployment would also need to reach dramatically high levels.  Moreover, there would need to be a large number of people looking to liquidate their properties at the same time.  If all those factors were to occur, a crash could be a possibility, but based on how our economy is travelling at the moment, it is fair to say that we are not in for a crash.  According to the Australian Bureau of Statistics (ABS), Australia’s population grew 1.6% over the year to March 2017 – which is significantly higher than other developed nations.  In total numbers, our population grew by 389,100 over the past year, and all of those people need somewhere to live. If we want to cater to our growing population, we need to build more properties, and that is exactly what we are doing.  So, supply and demand are working in good kilter with one another. At the same time, interest rates are low and we expect them to stay lower for longer. Meanwhile, the unemployment rate is trending downwards, with the latest data from the ABS showing that the unemployment rate fell 0.1% throughout September to 5.5%. When you consider all of the above economic data, there is nothing to suggest that a property price crash is in our near future.  In fact, the opposite is true. With interest rates sitting at all-time lows, lenders competing for business and property price growth stagnating across some markets, now was a good time for prospective buyers to achieve their property goals.  If you have plans to be in the property market, now is the right time achieve your goals.
John Flavell is the chief executive officer of Mortgage Choice.
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What bubble? Majority of Australians ‘optimistic’ about property: John Flavell

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Home loan demand rose for the third consecutive month, according to new data.
The Australian Bureau of Statistics’ Housing Finance data showed 56,464 home loans were approved over the month of July, up 2.9% from the previous month.
“July was the third consecutive month of growth for home loan approvals,” Mortgage Choice chief executive officer John Flavell said.
“Historically low interest rates are helping to keep heat in the property market and borrowers are clearly keen to take advantage of this.”  
While the number of home loan approvals rose, the value of dwelling commitments fell 0.9% to $33.03 billion over the month of July.
“This can be attributed to the drop in the value of investment loans approved.
“During the month of July, $12.06 billion in investment loans were approved – down 3.9% from the previous month.
“I am not surprised to see a downwards shift in investment demand," he said.
Changes have made it hard for some investors to qualify for finance.
Looking ahead, Mr Flavell said he expected home loan demand to be strong.
“We are now in spring, which is generally the busiest period for the property market, so I would expect to see home loan demand remain robust."
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Home loan demand rises for third consecutive month

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GUEST OBSERVER
Nearly one in three Australian investors are worried about the rising cost of living, according to new data.  
Mortgage Choice’s Investor Survey found the increasing cost of living was the biggest issue facing Australian investors over the coming 12 months. 
I am not surprised to hear that so many property investors are worried about the cost of living.
Every day expenses such as gas, electricity, childcare, and transportation continue to rise every year, which is bound to negatively impact the hip pocket of all Australians, including property investors. 
On top of that, wage growth continues to stagnate, with the latest data from the Australian Bureau of Statistics showing wages grew just 1.9% over the 12 months to June 2017. 
According to the Investor survey, one in five investors were also worried about job security, while a further 15% were worried about rising interest rates. 
Perhaps most surprisingly, our data found one in four investors were actually concerned about rising property prices. This would suggest property investors are constantly looking to expand their portfolio of assets and, as such, don’t want property to become so expensive that it is out of reach.
There are a number of strategies investors can take to lessen the impact of the rising cost of living and rising interest rates. 
While you may not be able to control the inevitable rise in everyday living expenses or interest rates, you can control where you spend your money and how much money you save. 
With good strategic planning, you can ensure that you’re able to afford your mortgage repayments and your lifestyle now and into the future.
In the first instance, its pays to take the time to draw up a budget for your pay cycle, including all of your incomings and outgoings throughout that period. 
Make sure you are detailed so that you can identify where your money is going and where you may be able to cut back. It is important to set aside a regular portion of your income as savings. This money can then be used as an emergency fund for a rainy day. 
Moreover, whether you’ve had your mortgage for a short time or a while, it is always a good time to have your home loan checked. 
Your local broker can look at your current product and compare it with others on the market. They may be able to help you find a product with a sharper rate that will end up saving you thousands of dollars.
Investors wanting to make to make their money work harder for them should also consider speaking with a financial adviser.  
Even if you are comfortable with your current financial situation, it is worth speaking to a financial planner who can assess your financial situation and create a personalised plan to help you reach your goals. 
 
John Flavell is chief executive officer <a href="https://www.mortgagechoice.com.au/" target="_blank">Mortgage Choice</a>.
 
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1 in 3 investors concerned about cost of living: John Flavell

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Home loan approval data for July shows  fixed rate home loans accounted for 29.63 percent of all loans written throughout the month according to Mortgage Choice.
This is its highest level in more than three years, say Mortgage Choice.
John Flavell, Mortgage Choice chief executive officer said this is the highest level of demand we have seen for fixed rate home loans since December 2013, when fixed rate home loans accounted for 33.06 percent of all loans written.
“The surge in popularity for this type of product does not come as much of a surprise when we look at what’s been taking place in the market in recent weeks," he said.
“A few of Australia’s lenders have lowered the interest rates charged on some of their fixed rate products, with some trimming up to 10 basis points from their four and five year rates.
"As a result, many of the fixed rate home loans now on offer are very competitively priced.
“Of course, this isn’t the only activity taking place in the market.
"In recent weeks, many of Australia’s lenders have introduced a raft of other policy and pricing changes.
<a href="https://www.propertyobserver.com.au/images/2017/08/03/Chart-2.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/2017/08/03/Chart-2.jpg" alt="">
“Some lenders have significantly increased their interest only pricing across both their investment and owner-occupied products.
"These changes have helped make the mortgage market more complex than ever before.
“Subsequently, borrowers wanting certainty and security over their repayments for a set period of time are increasingly turning to a fixed rate mortgage.
"Fixed rate demand rose in every state throughout the month of July. 
"Western Australia had the highest proportion of borrowers opting for a fixed loan, with the product making up 35.77 percent of loans written throughout July.
"Not far behind was New South Wales, where fixed rate loans accounted for 33.59 percent of all loans written, and Queensland, where fixed rate loans accounted for 28.08 percent of all loans written.
"Overall, variable rate loans remained the most popular product for borrowers in Australia, particularly ongoing discount loans.
"It remained to be seen whether borrowers continued to flock towards the perceived safety of fixed rate home loans, or ride the changes in the market by selecting a variable rate product.
“Borrower demand for certain products will be dictated by what happens in the market.
“For example, if we continue see added complexity in the market - with lenders making changes to their pricing and policy - I would expect to see more borrowers opting for the security of a fixed rate loan.
"Borrowers and prospective buyers needed to remember that home loan rates are still hovering around historically low levels.
“Whether you’re looking to buy your first property, upgrade, refinance or even renovate, now it a great time to make your property goals a reality.”
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Fixed rate demand hits three year high

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Fresh data has found that more than one in four first home buyers are prepared to compromise on space, in order to get a foothold into the Australian property market.
Mortgage Choice and Core Data’s Evolving Great Australian Dream whitepaper discovered 27.6 percent of first home buyers would be happy to buy a small dwelling in order to get into the market.
According to Mortgage Choice chief executive officer, John Flavell (pictured), the Great Australian Dream of homeownership is becoming increasingly difficult, with property prices climbing across many different markets, specifically Sydney and Melbourne.
“First home buyers understand that buying property is difficult and they may not be able to buy the exact home they want, or exactly where they want,” Flavell said.
“That said, first home buyers are, on the whole, very financially savvy and they see the benefit of getting their foot on the property ladder sooner rather than later. As such, they are prepared to use different home buying strategies to make their property purchase goals a reality.”
Another popular purchasing strategy amongst first home buyers was buying in the outer suburbs or further away, with 25% of respondents saying they would employ this tactic.
“Our data shows that one in four first home buyers are willing to buy in the outer suburbs or further away from where they would prefer to live. These properties are likely to be cheaper and more affordable, and while this may appear to be a trade-off, it will be worth it in the long run,” he said.
“Once you have built up adequate equity in your property, you can then upgrade and renovate or buy a bigger and better property.”
A third strategy that first home buyers were likely to use was seeking financial support from family, which could take the form of a monetary gift or having a parent go guarantor on a home loan.
“The challenge for first home buyers these days is saving a sufficient deposit. As such, it is no surprise to see a significant number of first home buyers stating that they would look for financial assistance from family in order to make their property goals a reality.”
Flavell added that it was important for first home buyers to remember that property was a long-term investment.
“It is undeniably tough for first home buyers to get onto the property market, but it is not impossible. At the end of the day, property is a long-term investment that will require buyers to take various steps before they can own their ideal home,” he said.
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First home buyers willing to compromise on space to buy 

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New data has found a growing proportion of borrowers are seeking the security that comes with a fixed rate home loan, according to the latest national home loan approval data from Mortgage Choice.
Fixed rate home loans accounted for 22 percent of all loans written in December, up from 19.5 percent in the month prior.
“This is the fourth consecutive month that we have seen fixed rate demand increase,” Mortgage Choice chief executive officer John Flavell said.
“With speculation mounting that the Reserve Bank of Australia could soon lift the official cash rate, it is clear that a growing proportion of borrowers wish to beat any potential rate hikes by opting for a fixed rate home loan.”
Mr Flavell said current market conditions combined with a spate of rate increases by Australia’s lenders meant a rate rise by the Reserve Bank this year was now more likely than not.
“In December, the United States’ Central Bank announced it would increase the Federal Funds rate by 25 basis points to 0.75 percent.
Furthermore, the bank indicated that the Federal Funds rate could rise by a further 75 basis points throughout 2017 – through three separate rate increases.
“Closer to home, many of Australia’s lenders have already started to raise rates across their suite of home loan products.
In addition, the Reserve Bank of Australia has stated that the time for easing the monetary policy setting has now passed.
All of these factors combined would suggest that a rate increase by the Reserve Bank could be right around the corner.
“Borrowers understand this and that is why a growing proportion of mortgage holders are opting for fixed rate products.”
<a href="https://www.propertyobserver.com.au/images/2017/01/09/variable_rate.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/2017/01/09/variable_rate.jpg" alt="">
Across the country, fixed rate demand was highest in New South Wales, with this type of product accounting for 27.34 percent of all loans written throughout the month of December.
“Queensland wasn’t far behind, with fixed rate home loans accounting for 24.64 percent of all loans written within the state.
At the other end of the spectrum, fixed rate demand was lowest in Victoria, with this type of product making up just 12.69 percent of all home loans written,” he said.
“Looking ahead, I wouldn’t be surprised to see fixed rate demand continue to rise across most of the states as a growing proportion of borrowers look to beat the threat of rising rates.”
<table style="width: 403px;" border="1" cellspacing="0" cellpadding="0" align="left"><tbody>
<tr>
<td nowrap width="101">
 
 
</td>
<td colspan="2" nowrap width="56">
NSW/ACT
</td>
<td colspan="2" nowrap width="60">
VIC/TAS
</td>
<td colspan="2" nowrap width="60">
QLD
</td>
<td colspan="2" nowrap width="60">
SA/NT
</td>
<td colspan="2" nowrap width="67">
WA
</td>
</tr>
<tr>
<td colspan="2" valign="bottom" nowrap width="115">
 Variable
</td>
<td colspan="2" valign="bottom" nowrap width="56">
72.66%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
87.31%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
75.36%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
84.45%
</td>
<td valign="bottom" nowrap width="52">
83.91%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Basic Variable
</td>
<td colspan="2" valign="bottom" nowrap width="56">
9.76%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
16.04%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
25.14%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
33.53%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
15.66%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Standard Variable
</td>
<td colspan="2" valign="bottom" nowrap width="56">
10.74%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
21.01%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
7.17%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
13.77%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
13.42%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Ongoing Discount
</td>
<td colspan="2" valign="bottom" nowrap width="56">
46.96%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
43.43%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
36.61%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
32.59%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
51.52%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Line of Credit
</td>
<td colspan="2" valign="bottom" nowrap width="56">
1.32%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
1.58%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
0.61%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
1.03%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
0.86%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Introductory Rate
</td>
<td colspan="2" valign="bottom" nowrap width="56">
3.88%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
5.25%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
5.83%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
3.53%
</td>
<td colspan="2" valign="bottom" nowrap width="67">
2.45%
</td>
</tr>
<tr>
<td colspan="2" valign="bottom" nowrap width="115">
 Fixed
</td>
<td colspan="2" valign="bottom" nowrap width="56">
27.34%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
12.69%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
24.64%
</td>
<td colspan="2" valign="bottom" nowrap width="60">
15.55%
</td>
<td valign="bottom" nowrap width="52">
16.09%
</td>
</tr>
</tbody></table>
 
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Fixed rate home loan demand surges again

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A survey of first home buyers has found most would not consider asking parents to go guarantor on their home loan
The annual First Home Buyer survey from Mortgage Choice found Victoria had highest proportion of first home buyers who would not ask parents for help.
Mortgage Choice chief executive officer John Flavell said 59.7 percent of respondents to the survey would not consider asking their parents to go guarantor on their home loan and one reason is because they don’t understand what guarantor loans are and how they work. 
“While guarantor loans have been around for a while, they have only enjoyed a surge in popularity in recent times," he said.
"As such, many first home buyers may not even be aware that guarantor loans exist.
“In addition, some first home buyers may feel as though they need to be able to prove they can buy a home on their own and don’t want to burden their parents by asking them to go guarantor on their loan.
“Nearly 65 percent of Victorian-based first home buyers said they would not consider asking their parents to go guarantor on their loan.
"With home prices rising month after month, many first home buyers were finding it increasingly difficult to get their foot onto the property ladder without some form of financial assistance.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="198">
Would you consider asking your parents to go guarantor on your loan?
</td>
<td width="44">
National
</td>
<td width="44">
NSW
</td>
<td width="44">
VIC
</td>
<td width="44">
QLD
</td>
<td width="44">
SA
</td>
<td width="44">
WA
</td>
</tr>
<tr>
<td valign="top" width="198">
Yes
</td>
<td valign="top" width="44">
35.7%
</td>
<td valign="top" width="44">
43.8%
</td>
<td valign="top" width="44">
32.5%
</td>
<td valign="top" width="44">
37.5%
</td>
<td valign="top" width="44">
31.9%
</td>
<td valign="top" width="44">
33.7%
</td>
</tr>
<tr>
<td valign="top" width="198">
No
</td>
<td valign="top" width="44">
59.7%
</td>
<td valign="top" width="44">
52.7%
</td>
<td valign="top" width="44">
64.9%
</td>
<td valign="top" width="44">
59.2%
</td>
<td valign="top" width="44">
58.5%
</td>
<td valign="top" width="44">
62.9%
</td>
</tr>
<tr>
<td valign="top" width="198">
My parents and I don't know/ understand what guarantor is
</td>
<td valign="top" width="44">
4.6%
</td>
<td valign="top" width="44">
3.5%
</td>
<td valign="top" width="44">
2.6%
</td>
<td valign="top" width="44">
3.3%
</td>
<td valign="top" width="44">
9.6%
</td>
<td valign="top" width="44">
3.4%
</td>
</tr>
</tbody></table>
“Not only are property prices rising across most capital cities, but all of the states have now removed the first home buyer grant for those wishing to purchase an established dwelling.
He said according to Mortgage Choice data more than 80 percent of first home buyers will look to purchase an established dwelling, meaning the vast majority of first timers will not receive any type of government financial incentive.
“With that in mind, there are plenty of reasons why a first home buyer may need financial assistance from their family. And while it is clear the majority of first home buyers are uncomfortable about asking a parent to go guarantor on their loan, there is a lot of benefits associated with this type of loan structure.   
“A guarantor can not only help first home buyers get their foot on the property ladder sooner rather than later, but they can also help them to avoid paying potentially costly Lenders Mortgage Insurance.
He stressed it was important to speak to a mortgage professional.
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