NAB’s New Rate

Property Edge

NAB’s New Rate

Welcome to this week’s edition of Property Edge, where we dive into the latest trends and insights reshaping Australia’s property landscape. With NAB’s recent rate cut sparking renewed competition, there’s no better time to assess your home loan options. In this issue, we explore how Aussies are responding to shifting market dynamics, from rising loan applications to the increasing allure of coastal living within 7km of the shore. Whether you’re looking for the latest hotspot or wanting to proactively negotiate with your lender, this week’s insights are sure to inspire.

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Back to the newsletter….

Manufacture Your Own Rate Cut: Leverage NAB’s 40 Basis Point Cut to Negotiate a Better Deal

Recent moves by NAB have turned up the heat in Australia’s home loan market, with the bank cutting its basic variable rate by 40 basis points to 6.44%—a significant move that could trigger a broader wave of rate competition among lenders. For Property Lovers, this news could offer a powerful opportunity to press your own bank for a rate cut, even if you’re not NAB customers.

Here’s what you need to know:

NAB’s New Rate: The rate cut, aimed at new customers, could save homeowners on a 500,000 loan approximately 126 per month. For a 750,000 loan, that’s around 189 a month, and 251 for a 1 million loan.
Competitive Context: This is NAB’s first base rate cut in a year, following a previous hike in November 2023. The new 6.44% rate now aligns more closely with CBA and ANZ’s digital-only offerings for refinancing, but NAB’s rate is available in-branch for new customers—a unique edge among the big four.
Market Insight: Over recent months, rate cuts for new customers have been common with many lenders trying to outdo each other to woo new business, with 14 cuts in July, 12 in August, 13 in September, 17 in October, and seven already in November.
Rate Reduction Strategy: For existing borrowers, Canstar’s data insights director, Sally Tindall, advises leveraging this move to negotiate with their current banks. She recommends researching competitive rates online and using them as leverage. Currently, 38 lenders offer at least one rate below 6%, providing ample bargaining power.

Expert Advice: Mozo’s Rachel Wastell suggests treating NAB’s move as an early “Christmas present” and notes that the 40-point cut is almost the equivalent of two RBA cuts, creating fresh momentum for customers to secure savings.

Outlook: NAB economists have pushed their RBA rate cut forecast back to May 2025, with expectations of one cut per quarter to bring the cash rate down to 3.10% by mid-2026.

Your Potential Action Plan:

Call your bank and reference NAB’s new rate as a benchmark.
Have a second competitive rate in hand, ideally from lenders offering below 6%.
Negotiate firmly; recent success stories show that banks may lower rates to retain existing customers.

Now could be the time to turn NAB’s move into a potential rate reduction for your own loan, regardless of where you bank.

Loan Demand Is Rising – What Can We Learn From The Data?

Despite rising property prices and record-breaking home loan sizes, Australians are still hungry for property. The latest Money Mortgage Insights report reveals that even as the average home loan reaches 642,121 – nearly equivalent to the Prime Minister’s salary – the number of loan applications continues to climb, driven by shifting market dynamics and falling fixed rates.

Key Insights:

Surge in Loan Applications: Owner-occupier loan growth jumped from 3.4% to 5% in a single month, with the biggest gains in Western Australia (9%) and Victoria (7%). In contrast, New South Wales and Queensland saw modest 4% growth.
Investor Activity Rising: Investor loans rose 19% nationally, with an average loan size of 654,056, marking a 7.7% increase. Queensland has overtaken Victoria as the second-largest market for investor loans, driven by high rental demand and lifestyle appeal.
Western Australia Leads Growth: Western Australia saw a remarkable 43% annual increase in loan numbers, followed by Queensland (24%) and New South Wales (20%). Experts predict that while the eastern states may see growth in 2025 as rates drop, WA and SA may start stabilizing due to market saturation.
First Home Buyers and Regional Appeal: First home buyer loans increased 8% across Australia, with Victoria leading at 14% growth. States with relatively affordable housing, such as Victoria and Queensland, continue to attract both owner-occupiers and investors, particularly in areas outside major cities.
Northern Territory’s Investor Potential: The Northern Territory recorded a 50% jump in loan numbers in September, with investors attracted to high rental yields, especially in Darwin, where rental returns remain among Australia’s highest.
Refinancing Drops: Refinancing activity dropped 14% compared to last year, likely awaiting potential rate cuts to spur more competition among lenders.

Australia’s Most Sought-After Neighbourhoods: Where Buyer Demand is Surging

Demand for property in Australia is rising in emerging suburbs, driven by affordability and lifestyle appeal. According to a new PropTrack analysis, nearly 60% of suburbs saw increased views per listing on realestate.com.au compared to last year, highlighting strong buyer interest in specific areas across the country.

Key Takeaways:

Rising Demand Indicators: Suburbs with high views per listing, such as Viveash in Perth, indicate where buyers are actively searching, according to REA Group senior economist Paul Ryan.
Top In-Demand Suburbs:
- Viveash, WA: Demand jumped 163%, influenced by new developments like the Rivermark estate. Median prices rose 14.8% to 706,000.
- Lochinvar, NSW: A village in the Hunter region, Lochinvar appeals to families with proximity to schools, shopping, and transport. The median price grew 50.9% to 743,750.
- Shoal Point, QLD: Unique properties, such as the sale of Little Green Island for 5.6 mil, are fueling demand.
Trends:
- Affordable Lifestyle Locations: WA and Queensland suburbs are particularly popular for their affordability.
- Diverse Property Options: Buyers seek locations with a mix of high-end and more affordable options, offering value in a high-demand market.

Here are the top 10 suburbs in Australia in terms of Views per Listing:

And here are the winners on a state by state basis. How does your state fare?

NSW

Queensland

Victoria

Why Coastal Living Within 7km is Top Choice for Buyers Amid Housing Market Shift

A new trend has emerged in Australia’s property market: the appeal of coastal living within a 7km range of the coastline, where most Australians now prefer to live. Despite affordability challenges, the latest CoreLogic data shows high demand for homes in these areas, as more Aussies look to swap urban life for a lifestyle near the sea.

Key Findings:

Market Shift with Rising Supply: The increase in home listings this spring has slowed price growth, particularly in top-performing cities like Perth, Adelaide, and Brisbane. Sydney saw its first median price dip since January 2023, but this is expected to change with the upcoming holiday season, which typically sees fewer new listings.
Migration to Coastal Areas: Driven by affordability and lifestyle, city dwellers are seeking homes in regional coastal areas. The Sunshine Coast is the leading sea-change destination, capturing 11.8% of net migration from cities to regional areas in the year leading up to March 2024. Following were the Gold Coast (10.8%), Lake Macquarie (4.7%), and Greater Geelong (4.6%), all within 150km of their nearest capital cities.
Capital Growth for Coastal Suburbs: Coastal properties have shown strong price growth, especially outside major cities. In FY24, more than 60% of coastal suburbs with 20+ sales recorded a median price increase of 5% or more, with 31% of city suburbs and 17% of regional suburbs seeing over 15% growth.
Comparison of Coastal and Regional Prices:
– In New South Wales, Sydney’s most desirable coastal suburb, Dover Heights, had a median dwelling value of 5,463,711 as of June 2024, compared to 2,103,965 in Gerroa, the priciest regional coastal suburb, offering significant value for regional buyers.

– In Queensland, popular Sunshine Coast suburbs like Noosa Heads (1,870,804) and Sunshine Beach (1,774,691) surpass Brisbane’s high-value suburb of Point Lookout (1,679,718) in price.
Affordable Coastal Opportunities: Despite high demand, 34% of regional coastal suburbs still have median values below the regional Australian median of 627,872, signalling continued opportunity for buyers seeking affordable coastal properties.

This growing attraction to coastal living underscores a strong lifestyle shift and highlights new opportunities for property buyers looking for value and quality of life near the water.

That’s it for this week’s Property Edge! Whether you’re seeking a home loan negotiation or scouting out coastal gems, the market is full of opportunity as we head toward 2025. Stay informed, stay proactive, and remember that one savvy property move can change everything. See you next week for more property insights and trends!

Warm Regards,

Property Lovers Team

Important Reminder:

Discover Distressed Deals with Fast Property AI – Free Access Now!

We’re giving you instant access to this powerful property research software—completely free.

No fees, no obligations—just smart, data-driven insights to help you seize high-profit opportunities in today’s challenging market.

Click here to get free access

P.S. Be among the first 100 to secure this exclusive offer—early users get the best deals, especially during the holiday buying season!