Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Mortgage Lending

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The value of lending commitments to households, as well as the number of home loans approved, fell in December 2018, according to the Australian Bureau of Statistics.
The fall in the value lending to households in December (4.4 percent), follows a 2.4 percent fall in November 2018. 
The number of home loan approvals also saw a hit, falling a seasonally adjusted 6.1 percent in December from November.
Economists had expected a two percent fall in lending over the month.
The number of loans to owner occupier first home buyers is now down 12.6 percent from December 2017.
Click here <a href="https://www.propertyobserver.com.au/images/2019/2/12/Lending-ABS.jpg" target="_blank">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/2019/2/12/Lending-ABS.jpg" alt="">
Bruce Hockman, ABS chief economist, said large falls in the value of lending for owner occupier dwellings and investment dwellings drove the fall in lending commitments.
Owner occupier dwellings decline 6.4 per cent and investment dwellings were down 4.6 per cent. "The slowdown in lending for investor dwellings this month continues the steady decline over the past two years, with the value of new investor loan commitments down around 40 percent from the peak at the start of 2017.
"The slowdown in lending for owner occupier dwellings is more recent, with falls concentrated in the last half of 2018", he said. 
 
 
 
 
  
 
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jrobinson-rf4aSBido9

Number and value of loans decline further December: ABS

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Westpac chief executive Brian Hartzer has rejected claims that the big four banks are worsening the housing price slump by cutting off credit.
"Let's be clear: we want to lend", Hartzer said in his opinion column in the Australian Financial Review.
"For Westpac, the recent decline in credit growth was due entirely to a reduction in new applications; average approved loans sizes actually increased slightly, while our approval rates remained unchanged".
"As to the perception that the royal commission has made banks scared to lend, for Westpac this is simply not the case", Hartzer said.
Hartzer did suggest the increase in scrutiny of customers' expenses and income, plus the building of additional buggers into loan serviceability calculations, had added to the time and cost of getting a loan.
"My view is that the housing market remains fundamentally sound and, overall, the adjustments are nothing to be alarmed about."
Median house prices in Sydney fell 10 percent in 2018, according to CoreLogic, while the second biggest capital housing market Melbourne saw 9.1 percent falls, accelerated in the latter part of the year.
Hartzer said the falls needed to be seen in the context of a 75 percent jump in Sydney prices between 2011 and 2017, and a 55 percent rise in Melbourne prices over the same period.
He cautions that investors have been given further "reason to pause", ahead of the looming general election and Labor's proposed tightening of tax breaks for negatively geared property.
He said "uncertainty around potential taxation changes relating to residential property" was weighing on demand from property investors while buyers were putting off decisions to buy, upgrade or invest until after the election. 
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j.ballantyne1990-6AQqhLzZaK

Westpac boss Brian Hartzer rejects blame for worsening housing price slump

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Fasten your safety belts for a nasty downturn.
That's the warning from The Australian columnist Robert Gottliebsen.
"My fear is that on top of the APRA squeeze, we will have royal commission recommendations and then a series of class action court cases against banks.
"Combined, they will deepen and extend the credit squeeze.
"If the vicious downward spiral was broken today there would be minimal damage.
"But the squeeze looks like not only continuing but getting worse.
"If that happens, fasten your safety belts for a nasty downturn," he wrote earlier this week in the national newspaper.
Robert Gottliebsen says the credit squeeze juggernaut is being driven by the regulators, led by APRA.
He says bank chief executives, bank boards with greatly reduced power and the local bank branch managers are scared by what they describe in low tones as the APRA “Gestapo”.
"There is no doubt that APRA is the main force behind the credit squeeze.
"Unless much clearer boundaries are drawn, APRA, aided by the royal commission, will drive house prices lower and lower and construction rates will fall."
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Bank lending squeeze heading for nasty property and construction downturn: Robert Gottliebsen

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Banks will start sharing lending data ahead of comprehensive credit reporting from next July covering the entire financial system.
"Suddenly banks will discover when they have been hoodwinked by borrowers using multiple banks," The Australian columnist Robert Gottliebsen warns.
"The bottom line is that bank lending for housing will fall further and so will prices in vulnerable areas."
His recent column noted the credit squeeze is already reducing dwelling prices and there is more to come.
The tough times in many areas of real estate (but not all) will continue until the squeeze is reversed, he wrote.
"At this stage there is no crash on the horizon.
"But those dwelling price falls will in time reduce consumer confidence and the price of shares in companies affected by consumer confidence."
Gottliebsen noted that Westpac was the most aggressive of lenders to housing investors.
He noted the fastest-growing area of loans was 'interest only' and Westpac led the pack.
"There has been a huge crackdown and these loans are being converted to interest-and-principal repayments."
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Bank lending for housing will fall further after comprehensive credit reporting: Robert Gottliebsen

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Thousands of potential Sydney upsizing vendors are not going anywhere this spring, being trapped in their current home with their current financing.
All due to tighter home loan lending restrictions that leaves them unable to negotiate the required funds to upsize.
Indeed many of these home owners would not be able to get the same existing loan amount if they tried, and not just because of weak income growth.
Stricter lending rules are a good thing, especially at a time of historically low interest rates, but they will continue to be a major brake on buyer potential to bid for property.
This means fewer offers from finance approved buyers which means the galloping price growth seen during the five year boom just won't happen.
The size of the imminent spring price falls will depend, in part, on just whether downsizing vendors seek to sell at a discount to recent values.
I think sales activity levels will remain subdued.
With very high household debt, these stricter lending criteria were introduced for good reason by the regulatory authorities over the past four years.
The unexpected royal commission into finance has extenuated the tightening by lenders.
Gone is the one size fits all approach which saw inflated amounts being lent to desirous home buyers.
Lenders now look thoroughly at the applicant's income and expenses - everything from utility bills, childcare, Netflix subscriptions, education, insurance, telephone and internet, groceries and medical, health and disability requirements. Even beauty treatments.
The regulator also now expects lenders to discount uncertain or variable income by at least 20%, including any rental income for investment properties.
Mozo finance commentator Steve Jovcevski suggests stay put home owners are also struggling to refinance their way into better mortgages. 
He nominated a couple with one dependent and a dual income of $120,000 who purchased a home in 2013, borrowing $800,000.
Their $4,295 monthly repayments leaves them $3,680 to manage their other expenses.
Fast forward five years, the couple now has a $129,000 combined salary and they've had another child.
They're still paying the same amount, have $734,600 left to pay off, and would like to refinance to closer to the 3.8% on offer rather than staying with their current 5% rate.
When they secured their 2013 loan, the bank used a poverty line index to estimate their costs ($3,276 per month) with a buffer of 1.5% to ensure the couple could meet their repayments if rates increase.
The bank now defines their actual expenses as being $4000 per month, and applies a 2% buffer.
Under the new criteria the refinancing couple can only borrow $680,000.
These home owners have been dubbed 'mortgage prisoners', unable to move to a more competitive mortgage deal, even if they’ve met every repayment, because they would not pass new affordability tests.
The banks would like to continue their loan growth, but for the penalties being handed out for breaches against their responsible lending obligations.
The best poised spring buyers are likely stumping up a near 20% deposit.
And have done a through spring clean of their finances, including getting rid of excess credit cards, which are a negative on their credit ranking.
Find a good mortgage broker too.
This article first appeared in The Daily Telegraph. 
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jchancellor-FAypfDUnLy

New financing restrictions leading to 'mortgage prisoners'

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A review by ASIC has found that reverse mortgages are allowing older Australians to achieve their immediate financial goals – improving their lifestyles in retirement – but longer-term challenges exist.
For older Australians who own their home with few other assets, a reverse mortgage can allow them to draw on the wealth locked up in their homes, while they continue to live in their property.
ASIC reviewed data on 17,000 reverse mortgages, 111 consumer loan files, lender policies, procedures, and complaints. We also commissioned in-depth interviews with 30 borrowers and consulted over 30 industry and consumer stakeholders.
The review found borrowers had a poor understanding of the risks and future costs of their loan, and generally failed to consider how their loan could impact their ability to afford their possible future needs. Lenders have a clear role to play here and need to do more: for nearly all of the loan files we reviewed, the borrower’s long term needs or financial objectives were not adequately documented.
<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/2018/8/28/asic%201.jpg" alt="">
Importantly, under legal protections in place since 2012, borrowers can never owe the bank more than the value of their property, and can remain in their home until they pass away or decide to move out. However, depending on when a borrower obtains their loan, how much they borrow, and economic conditions (property prices and interest rates), they may not have enough equity remaining in the home for longer term needs (e.g. aged care).
ASIC Deputy Chair Peter Kell said “Reverse mortgage products can help many Australians achieve a better quality of life in retirement.”
“But our review shows that lenders and brokers need to make inquiries that would lead to a genuine conversation with customers about their possible future needs, not just a set of tick boxes on a form.”
ASIC’s report also finds that there is an opportunity for lenders to reduce the risk of elder abuse. Under the new Code of Banking Practice, recently approved by ASIC, banks will be required to take extra care with customers who may be vulnerable, including those who are experiencing elder abuse.
Consumers also had limited choices for finding a reverse mortgage. Several providers withdrew from the market after the global financial crisis. From 2013 to 2017, two credit licensees provided 80% of the dollar value of new loans from 2013 to 2017.
<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/2018/8/28/asic%202.jpg" alt="">
Background
Reverse mortgages are a credit product that allows older Australians to borrow using the equity in their home. The loan does not need to be repaid until a later time, typically when the borrower has vacated the property or passed away. They are a more expensive form of credit compared to standard variable owner occupier home loans; the interest rates are typically 2% higher and, as there are no repayments required, interest compounds. 
Consumer demand for reverse mortgages has grown gradually since the global financial crisis, with the total exposure of ADIs to reverse mortgages increasing from $1.3 billion in March 2008 to $2.5 billion by December 2017.
ASIC commenced a review of lending practices and consumer outcomes in the reverse mortgage market to proactively examine issues that might emerge for older Australians.
As part of this review, we evaluated the effectiveness of enhanced responsible lending obligations for reverse mortgages which were introduced five years ago into the National Consumer Credit Protection Act 2009 (National Credit Act).
This review examined five brands, who collectively lent 99% of the dollar value of approved reverse mortgage loans in 2013-17. These brands were: Bankwest, Commonwealth Bank, Heartland Seniors Finance, Macquarie Bank and Westpac (comprising St George Bank, the Bank of Melbourne and BankSA). As of late 2017, Macquarie Bank and Westpac are no longer providing new reverse mortgages.
This project forms part of ASIC's broader work for older Australians to help bring about positive changes for these consumers in credit and financial services: see REP 537 Building seniors’ financial capability report 2017 and REP 550 ASIC’s work for older Australians.
ASIC’s MoneySmart website has information for consumers about reverse mortgages. Consumers can also use MoneySmart's reverse mortgage calculator to see how a reverse mortgage can impact the equity in their home. 
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ASIC issues reverse mortgage lending warning

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EXPERT OBSERVER
<div>Total seasonally adjusted housing finance resumed its slowdown in declining by 1.6 per cent to $31.23 billion in June 2018, with slower mortgage processing times and tighter lending procedures biting.</div>
<div> </div>
<div>You might argue the toss over the classification of loans between investors and owner-occupiers, but the smoothed trend figures for total housing finance confirmed a continuing decline for an 11th consecutive month. </div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-CT5aAEtbmjw/W2q05bketOI/AAAAAAAArb8/ZXCZh6MCPWEoEEsvYPHSR8Bl7kV8ASOzQCLcBGAs/s1600/HF1.jpg"><img src="https://4.bp.blogspot.com/-CT5aAEtbmjw/W2q05bketOI/AAAAAAAArb8/ZXCZh6MCPWEoEEsvYPHSR8Bl7kV8ASOzQCLcBGAs/s640/HF1.jpg" width="640" height="372" data-original-height="801" data-original-width="1378"></a></div>
<div> </div>
<div> </div>
<div> </div>
<div>Housing finance tends to have a fairly good correlation with dwelling price action, though economists try a bit too hard on this point, curve-fitting charts with warped y-axes trying to prove a faultless correlation that doesn't quite exist. </div>
<div> </div>
<div>There are more factors at play, of course, as the residents of Hobart, Geelong, or indeed many suburbs of Brisbane would attest. The share of the stock of outstanding loans pertaining to investors continued to decline on the ABS numbers, broadly mirroring what has been reported by the Reserve Bank. </div>
<div> </div>
<div>State versus state (macropru hurts WA)</div>
<div> </div>
<div>New South Wales has seen an ongoing trend decline in the number of owner-occupier commitments, with Queensland the only state to record an increase in the month of June (up 2.1 per cent). </div>
<div> </div>
<div>Sydney's housing market downturn has now spanned 12 months, the same length of time as the 2008-9 downturn, and already longer than those seen in 1985, 1994-95 and 2015-16 respectively (hat tip to Cameron Kusher of CoreLogic for the stats). </div>
<div> </div>
<div>One of the consequences of macroprudential measures has been to hinder markets that are already struggling.</div>
<div> </div>
<div>In Western Australia the number of home loans dropped to 4,602 in June, the lowest figure since May 1995 (when the population of the state was 1.7 million, compared to 2.6 million today, as highlighted by Shane Wright of the West Australian). </div>
 
<div><a href="https://4.bp.blogspot.com/-PA8_Q5rUHWs/W2q05d2JAPI/AAAAAAAArb4/UpthfNlEW4Q-w52DCPEdAMvhVQAlfRUGACLcBGAs/s1600/HF2.jpg"><img src="https://4.bp.blogspot.com/-PA8_Q5rUHWs/W2q05d2JAPI/AAAAAAAArb4/UpthfNlEW4Q-w52DCPEdAMvhVQAlfRUGACLcBGAs/s640/HF2.jpg" width="640" height="370" data-original-height="791" data-original-width="1361"></a></div>
<div>While some applications are clearly being knocked back, for borrowers of sound credit quality, there is robust competition from lenders.</div>
<div> </div>
<div>Indeed, the average loan size remains 5.6 per cent higher than a year earlier. </div>
<div> </div>
<div>First homebuyers accounted for more than 18 per cent of owner-occupier commitments, a 6-year high, with the average loan size at $349,800 the highest figure recorded for any month to date. </div>
 
<div><a href="https://2.bp.blogspot.com/-JkWsPF8C85A/W2q05TCi2uI/AAAAAAAArb0/2ViXbcb80kc1Krt7TcbgC-vp9HC5fGUowCLcBGAs/s1600/HF3.jpg"><img src="https://2.bp.blogspot.com/-JkWsPF8C85A/W2q05TCi2uI/AAAAAAAArb0/2ViXbcb80kc1Krt7TcbgC-vp9HC5fGUowCLcBGAs/s640/HF3.jpg" width="640" height="370" data-original-height="804" data-original-width="1390"></a></div>
 There was a sharp 4.9 per cent drop in the number of commitments for new dwellings. Non-banks emerge
<div>A final point for today: Commonwealth Bank's release noted a loss of market share, a trend which is being echoed across the major banks.</div>
<div> </div>
<div>The trend in non-bank lending on the other hand is benefitting entities such as Liberty Financial, Pepper, Firstmac, RESIMAC, and others.</div>
 
<div><a href="https://1.bp.blogspot.com/-6DEfTzpqOjI/W2q77TZr5WI/AAAAAAAArcY/6ZDWrIe6yX8wi-5Ep0d90bVnH5hBA_LjwCLcBGAs/s1600/HF4.jpg"><img src="https://1.bp.blogspot.com/-6DEfTzpqOjI/W2q77TZr5WI/AAAAAAAArcY/6ZDWrIe6yX8wi-5Ep0d90bVnH5hBA_LjwCLcBGAs/s640/HF4.jpg" width="640" height="378" data-original-height="792" data-original-width="1337"></a></div>
The wrap Soft housing finance result for June, and more softness is certainly expected for July. How long the tightness in lending persists is unclear, but it's all pointing down at the moment.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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pwargent-M4siyDbqQY

Housing finance resumes slowdown: Pete Wargent

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EXPERT OBSERVER
Borrowers continue to choose variable rate home loan products as demand for fixed rate home loans fell for the eigth consecutive month.
Variable rate home loans accounted for over 82% of all home loans written throughout May 2018 – up over 2% from the month prior, and almost 7% higher than the 12-month average. This trend will continue as borrowers develop apathy towards the Reserve Bank of Australia’s stagnant cash rate.   Indeed, we continue to see borrowers opt for the flexible nature of variable rate home loans which may offer a redraw facility, offset accounts and the ability to make extra repayments. These features are not typically associated with fixed rate loans.
Click here <a href="https://www.propertyobserver.com.au/images/2018/6/14/choice1.jpg" target="_blank">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/2018/6/14/choice1.jpg" alt=""> While a fixed rate product provides repayment certainty, variable home loan rates have been relatively stable for a prolonged period of time giving borrowers little incentive to fix. This week’s Housing Finance data from the Australian Bureau of Statistics found that 52,116 home loans were approved throughout April, down 1.4% from the previous month. Unsurprisingly, the value of investment loans dipped somewhat, falling 0.9% to $10.7 billion in April, which could reflect tighter lending standards and serviceability policies. However, May data may show an increase in investment loans following APRA lifting the cap on investor loan growth at the end of April. ABS data also shows the value of owner-occupied housing loans in April rose just 0.2% to $20.9 billion.
Click here <a href="https://www.propertyobserver.com.au/images/2018/6/14/choice2.jpg" target="_blank">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/2018/6/14/choice2.jpg" alt="">   The data also showed, in original terms, the number of first home buyer commitments as a percentage of total owner-occupied housing finance commitments rose to 17.6% in April 2018 from 13.7% in January 2018.
This increase is significant and first home buyers seem to be propping up the market.     Looking ahead, I expect to see a combination of factors, such as historically low interest rates, easing property prices and access to FHOGs, to maintain home loan demand - whether variable or fixed - but preparation is key.   With increased scrutiny on lending practices, buyers looking to secure housing finance should take practical steps to improve their serviceability and speak to their local mortgage broker, who can help take the guesswork out of the process and find the right financial product for their personal circumstances.
Susan Mitchell is the CEO of Mortgage Choice.
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Borrowers choose flexibility over certainty: Mortgage Choice

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Digital Finance Analysts' Martin North has noted credit is harder to get. 
The surveys conduction by DFA show that up to 40 percent of applications for mortgages are now being turned down, compared with just five percent a year ago, as lenders apply more forensic analysis of applications received.
This was triggering weaker conditions in Sydney and Melbourne.
He noted CBA is now looking at applications with a loan to income of 4.5 times and above.
"I am getting more reports of households who are finding their available borrowing power is as much as 35 percent down on a year ago."
So North suggests unlike the small correction which occurred to the CoreLogic Index in 2015, as credit was harder to get briefly, and which reverted a few months later, it would be "different this time."
He referred to the enhanced focus on mortgage lending serviceability means that a consideration of the loan to income ratio or LTI is ever more important.
In the UK, where LTI calculations are the norm, the Bank of England first introduced limits on high LTI mortgages in 2014.
These measures meant that no more than 15 per cent of mortgages issued should exceed a loan-to-income ratio of 4.5. 
The UK’s 4.5 LTI cap on 85 per cent of new lending is still in place. In June last year, Bank of England governor Mark Carney announced that the 4.5 ratio “insurance measures” will become “structural features of the UK housing market.
"It should be of no surprise to note that the Commonwealth Bank of Australia has announced that it has brought in its new debt-to-income measurement for borrowers," North blogged.
CBA, who is the largest owner occupied mortgage lender in Australia has disclosed that it will now “monitor” loan applications with a debt-to-income ratio higher than 4.5 and will also bring in a new e-learning requirement for brokers that have not settled a CBA loan for more than a year.
Applications with a DTI higher than 7 will be subject to a manual credit approval check.
North estimates across the country around 7.9% of all loans have a current loan to income ratio of 6 times or more.
"But the prize goes to New South Wales with a massive 15.8% of households currently holding loans with a loan to income ratio of 6 or more. This is of course explained by the high prices, big mortgages, and lose lending standards," he says.
 It is 7.1% of households in Victoria holding a loan to income ratio of 6 times or higher.
A recent borrowing sample was done by commentator Lindsay David at LF Economics on the Aussie Home Loan lending calculator site that showed how much the money on offer had dropped over recent years.
David's first image (below), is the figures of lending at an interest rate of 4.94 percent with a salary of $100,000 two years ago.
Aussie's online calculator advised it would be willing to lend up to nearly $825,000 two years ago.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/10/aussie2016.jpg" target="_blank">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/2018/5/10/aussie2016.jpg" alt="">
Fast forward two years and the mortgage lending giant are willing to offer over $200,000 less to the same borrower type.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/10/AUSSIE-2018.jpg" target="_blank">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/2018/5/10/AUSSIE-2018.jpg" alt="">
 
North looked at the RBA released their credit aggregates to April 2018. 
He noted total mortgage lending rose $7.2 billion to $1.76 trillion, another record.
 Within that, owner occupied loans rose $6.4 billion up 0.55%, and investment loans rose just 0.14% up $800 million. 
 Personal credit fell 0.3%, down $500 million and business lending rose $6.3 billion, up 0.69%. 
The annualised stats show owner occupied lending is still running at 8%, while business lending is around 4% annualised, investment lending down to 2.3% and personal credit down 0.3%.  On this basis, household debt is still rising. 
But the Bank lending data from APRA showed that tighter lending standards are biting.  
"In fact, Westpac apart, all the majors reduced their investor property lending in April," North noted.
 Owner occupied loans grew by 0.29% or $3.1 billion to $1.07 trillion while investment loans fell slightly, down 0.01% or $42 million.  
As a result, the relative share of investment loans fell to 34.14%.
 
 
 
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40 percent of loan applications are being turned down as credit squeeze hits would be-borrowers

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Interest-only loans fell sharply in the quarter ended September due to the Australian Prudential Regulation Authority’s steps to limit the high percentage of these risky loans by banks. 
APRA’s September Quarterly ADI Property Exposures data shows interest-only loans have fallen to 16.91 per cent of new lending, down from 30.50 per cent last quarter, a drop of 44.84 per cent and a historic low in terms of percentage share.
The big four banks have reduced the share of new interest-only loans to 16.69 per cent, down from 31.47 per cent in the June quarter, a drop of 48.65 per cent, RateCity said in a media release, citing APRA data.
RateCity.com.au money editor Sally Tindall said the results were an emphatic win for APRA which, in March, had demanded banks limit interest-only terms to 30 per cent of all new lending.
“Today’s data is a slam dunk for APRA,” she said.
“This has been a colossal turnaround in the way banks view interest-only terms.”
<a href="https://www.propertyobserver.com.au/images/2017/12/5/RateCity1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/12/5/RateCity1.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/12/5/RateCity2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/12/5/RateCity2.png" alt="">
In June 2015, 45.65 per cent of all new loans approved by banks were interest-only. Today this has been reduced to under 17 per cent, she added.
“The RBA will also be relieved to see people committing to paying down their debt. Our household debt to income ratio is at a record high.
“This move away from interest-only lending should help bring this ratio down to more realistic levels.
“While new lending has been slashed, the banks still have a way to go to budge existing mortgage holders,” she said.
The latest APRA figures show that 35.35 per cent of all loans are still interest-only, a modest six per cent drop over the quarter.
RateCity data shows that on average banks are charging between 30 and 35 basis points more for interest-only lending, however this hasn’t promoted the majority of existing borrowers to start paying down their debt.
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