Peppercorn Mortgages

23/06/2026

LRBAs for resi property to be banned
By Annie Kane
23 June 2026

The Albanese Government has formed a deal with the Greens to support the banning of limited recourse borrowing arrangements (LRBAs) for residential property by superannuation funds.

The Prime Minister has confirmed that the Albanese Government has secured support from the Greens for its housing tax reform legislation, after making a range of promises to the party - including a promise to support an amendment (set to be moved by the Greens) to ban future limited recourse borrowing arrangements (LRBAs) for residential property by superannuation funds.

The Greens have today (23 June) confirmed they will support passage of the first tranche of tax reform legislation, which includes the negative gearing and capital gains tax reforms - as well as tax cuts for 13 million workers.

Under the arrangement, the Greens have said they will vote for the legislation for the following support from government.

LRBA ban for resi property

The Labor party has agreed to close self-managed superannuation fund’s exemption from the prohibition on being able to borrow to fund investments.

Superannuation funds are generally prohibited from borrowing to purchase assets because it increases financial system risk.

However in 2011, SMSFs were given an exemption, enabling limited recourse borrowing arrangements (LRBA) to purchase property.

This change will be prospective, protect contracts signed before the date of commencement and provide time to finalise arrangements currently in train – by taking effect 45 days after royal assent.

Prime Minister Albanese said: “These arrangements constitute less than 1 per cent of total residential property borrowing and less than half a per cent of new residential borrowing each year.

“These changes don’t in any way change the tax arrangements for superannuation, don’t impact any existing SMSF borrowing arrangements and provide time to finalise arrangements that are in train.”

“Labor built superannuation and we’ll always look to make it stronger and fairer, and agreeing to these changes will reduce the risks to retirement savings while also securing passage of these important reforms to make the tax system fairer,” he said.

Remove Treasurer power for intervening

The government has also agreed to remove the Treasurer’s ability to add any additional classes of assets that can become eligible for the 50 per cent CGT discount and “rein in his power to prescribe any type of property investment that can be eligible for deducting losses against salary and wage income”.

“This prevents a Minister undoing these changes at the stroke of a pen by extending the discount to other assets,” a Greens spokesperson said.

Speaking of the decision, Prime Minister Anthony Albanese said: “The three right-wing parties voted against these tax cuts and in favour of big tax breaks for property investors in the House, and now they’re planning to vote the same way in the Senate which will mean voting against tax concessions for small businesses as well.”

He said the move meant the government was “another step closer to delivering its tax reforms for workers, home buyers, and businesses”.

“These reforms will make it easier for Australians to buy their first home, cut taxes for over 13 million workers, and better align the tax treatment of labour and asset income.”

He said: “It is now a question for the rest of the Parliament whether they will get on board with tax cuts for workers and a fairer tax system for first home buyers.”

Albanese said that government amendments to the legislation will mean all 2.7 million active small businesses and 98 per cent of all active businesses will be eligible for generous Capital Gains Tax (CGT) concessions, and will also support amendments to the NDIS legislation to clarify the implementation of the reforms.

Australian Greens Leader Senator Larissa Waters said: “This was a once-in-a-generation moment to help young Australians - but by grandfathering in wealthy property investor tax perks Labor has once again chosen to put the 1% over the millions of people trying to buy their first home.

“Backing this bill puts an end date on these tax breaks - but Labor’s low ambition means that that inequality and the housing crisis will be worse for longer. This enduring housing crisis will now be squarely of Labor’s design.

“We are glad that the government has listened to some of the concerns raised through the inquiry process by the Greens and experts, but Labor has again ignored young people and renters,” she said.

“Ending rather than grandfathering these tax breaks today would have helped renters get into a home of their own - but Labor is telling first homebuyers to wait because wealthy property investors haven’t made enough money off the housing crisis.

“The Greens will continue fighting for the third of this country who rent, while Labor, Liberal and One Nation keep trying to give more perks to ultra-wealthy property investors.”

11/03/2026

Factor in Rate Hikes.

The increase in oil prices has caused a ripple effect which has increase fuel costs across the board.
These increases will flow onto good and services which will increase inflation. The RBA general response to high inflation will be to raise interest rates. In line with this thinking, banks have started raising their fixed rate loans in expectation that the RBA will look to raise rates in the coming months.
Hopefully, the issues in the gulf stabilize and the cost of fuel drops, but .....

11/03/2026

RBA tipped for back-to-back hikes
By Mina Martin
Mar 11, 2026

Ahead of next week’s Reserve Bank of Australia (RBA) meeting, two major banks now forecast another round of cash rate hikes that could further strain borrowing capacity for first-home buyers and property investors.

Westpac and NAB now expect 25 basis point increases in both March and May, taking the cash rate to 4.35%, rather than a single move later in the year, while CBA and ANZ still see the next rise coming in May.

Canstar data show that a 0.25% hike in March would add about $91 a month to repayments on a $600,000 loan, assuming a 25‑year term and banks passing on the full move. If the RBA ultimately delivers three hikes across February, March, and May, monthly repayments on the same loan would be roughly $272 higher than at the start of the year.

Why Westpac and NAB expect the RBA to move sooner
Westpac chief economist Luci Ellis points to higher oil prices and RBA’s focus on headline inflation and inflation expectations as key reasons for bringing forward the expected tightening, despite the temporary nature of the shock. While the spike in fuel costs is seen as temporary, Westpac expects the board to respond, especially given the economy and financial markets have so far absorbed the impact.

NAB economists Sally Auld, Gareth Spence and Taylor Nugent have also revised their call, saying “the policy of least regret is to hike in March” and that “the case for a near term rate hike is clear” given the combination of higher‑than‑expected inflation, a tight labour market, and limited spare capacity in the economy.

The shift also reflects RBA’s cautious view of supply capacity and its updated mandate, which encourages a more active approach to steering inflation back to the 2% to 3% band. That could mean more frequent cash rate adjustments rather than long pauses.

Stress-testing budgets now a priority for brokers’ clients
Canstar’s data insights director Sally Tindall warns borrowers not to assume the tightening cycle is over.

“Borrowers hoping the worst of the rate hikes are behind them might need to brace themselves, with NAB and Westpac now tipping the RBA could ratchet up the pressure as soon as Tuesday,” Tindall said.

She also noted that “the split among the big four forecasts highlights just how uncertain the outlook currently is.”

“The RBA is walking a tightrope between tackling persistent inflation and avoiding pushing too hard,” Tindall said.

With a March move “not a done deal”, borrowers are being urged to stress-test their budgets at mortgage rates at least 0.5 percentage points higher, and to ensure existing loans remain competitive ahead of any further RBA action.

18/02/2025

Bluestone, NAB, CommBank waste no time in passing through rate cuts

Homeowners see immediate relief following RBA rate cut

Bluestone, NAB, CommBank waste no time in passing through rate cuts
By William Farrington
18 Feb 2025

Major banks and challengers have had a trigger-happy response to the Reserve Bank of Australia’s 25-basis-point cut to the cash rate this Tuesday.

Each of the Big Four, including Commonwealth Bank and NAB, uniformly announced a 0.25% decrease to their home loan variable interest rates.

Announcing the passthrough, Angus Sullivan (pictured), CommBank’s group executive, retail banking services said: “We know that cash rate increases have been challenging for our home loan customers and they are looking forward to some relief.

“We recognise some customers will continue to need support as they manage household budgets. We strongly encourage anyone who is experiencing hardship to contact us, so we can help with a solution that suits their circumstances.”

Although CommBank savers will likely see rate reductions too, the major said it will keep its 10-month term deposit special of 4.6% “for a limited time”.

Announcing NAB’s 0.25% variable home loan cut, Ana Marinkovic, group executive, personal bank, said: “We are very pleased to deliver this rate cut to home loan customers – we understand how tough it’s been for many Australians.

“The extended period of high interest rates has placed real strain on household budgets and this rate reduction will help to ease the financial burden.

“We wanted to move quickly after the RBA’s decision to provide customers with certainty.”

Specialist lender Bluestone Home Loans joined the party with a 0.25% reduction across all variable home loan rates.

"By passing on the full RBA cut and keeping our discount offer in place, we’re making homeownership more accessible and giving brokers the tools to support their clients," said Bluestone’s chief executive Mark Jones.

Bluestone’s chief commercial officer Tony MacRae added: "Following our recent refresh, this is just another way we are thanking our broker network and is a reflection of our commitment to financial inclusion and flexibility.

We’ve built our business on backing brokers and their client’s unique circumstances, and today’s move reinforces that.”

ANZ and Westpac also cut their rates by 0.25%.

31/07/2024

The slowing market

But headline growth remains positive

05/09/2023

Broker, non-bank lender react to decision

01/08/2023

By Adrian Suljanovic
01 August 2023 |

The central bank has decided to hold the cash rate for the second month in a row.

The Reserve Bank of Australia (RBA) has confirmed it will hold the official cash rate at 4.10 per cent today (1 August 2023) for the second consecutive month.

This is the first time the central bank has held the cash rate steady for two consecutive months in over a year (the last time being March–April 2022) and the third time the cash rate has been paused since May 2022.

RBA governor Philip Lowe said in the post-decision statement: "The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so."

"In light of this and the uncertainty surrounding the economic outlook, the Board again decided to hold interest rates steady this month.

"This will provide further time to assess the impact of the increase in interest rates to date and the economic outlook," Mr Lowe said.

However, the outgoing RBA governor added that "some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe" depending on data and the evolving assessment of risk.

He concluded that the board will continue to pay close attention to developments in household spending, the global economy and the outlook for inflation and the labour market.

Treasurer Jim Chalmers said that Australians have been “under the pump” as a result of higher interest rates.

“People are having to make difficult decisions about their household finances,” Mr Chalmers said.

“The government’s number one priority is taking the edge off some of these cost‑of‑living pressures without adding to inflation.”

Reacting to the decision, CreditorWatch chief economist Anneke Thompson stated: “A better-than-expected inflation rate over the June quarter, as well as slowing retail sales growth points to cooling economic conditions."

“And while the unemployment rate is still at record low levels, the forward indicators of employment conditions all point to a much tighter jobs market going forward.”

PropTrack senior economist Eleanor Creagh said subsiding momentum in inflation and consumer spending have “eased the pressure off the RBA to continue lifting interest rates”.

“The high level of inflation that has challenged the Australian economy and seen interest rates rise at the fastest pace in a generation, continued to moderate in the June quarter.

CoreLogic research director Tim Lawless commented that the pause will be a "welcome reprieve for many", although it does not necessarily indicate an end to the rate hiking cycle.

"For the housing sector, the decision to hold interest rates over the past two months is positive news. A growing expectation that interest rates have peaked, or are near a peak, should help to lift consumer sentiment from the recession-like lows that have persisted over the past nine months," Mr Lawless added.

Mortgage stress among the generations

A new survey from financial comparison site InfoChoice, the InfoChoice Real Hardship Survey, found that almost half of Australian borrowers were spending over 30 per cent of their household income on mortgage repayments.

The survey of 1,000 home owners found that 8 per cent of Gen Z borrowers (under 26) admitted to committing a crime to pay their mortgage, 28 per cent borrowed more money to meet repayments with 18 per cent borrowing from family, while 10 per cent sought out help from their lender or charity.

In addition, 26 per cent made late repayments, compared to less than 10 per cent for older generations.

Millennials recorded the most impact to family life, with 56 per cent seeking more income, 18 per cent ending up arguing with family, and 63 per cent cutting back on family activities.

For Gen X, 18 per cent said they had to pay a bill late and 13 per cent said they wouldn’t be able to afford a single mortgage repayment if they lost their job.

What was predicted?

Major bank economists were split down the middle when it came to forecasting the RBA’s decision today (1 August).

NAB and ANZ both predicted the RBA would decide on a pause this month.

However, NAB chief economist Alan Oster does expect a potential further cash rate hike in September or October to a peak of 4.35 per cent.

ANZ economist Madeline Dunk noted the sharp fall in June retail sales supported the case for the central bank to maintain the cash rate, attributing the slowdown in spending to rising mortgage payments and cost-of-living pressures.

Meanwhile, Westpac and the Commonwealth Bank of Australia (CBA) believed the RBA would move to lift the cash rate once more to a peak of 4.35 per cent.

Westpac chief economist Bill Evans stated the major bank has “consistently argued that a further increase in the cash rate should be the appropriate policy response at the August meeting”.

CBA economist Belinda Allen stated there was “enough evidence to suggest the path of least regret for the RBA is to lift the cash rate by 25 bps to 4.35 per cent in August”.

“This should provide an offset to any lingering risks in the inflation and wages outlook. We expect this to be the last rate hike of this cycle and for the RBA to be on hold until 2024,” Ms Allen said.

05/12/2022

It's the smaller capital cities that shine this year, expert says

01/12/2022

Looks like the RBA will slow down their rate increases.

On the first day of summer, and for the first time in many months, Reserve Bank officials can smile.

27/10/2022

.25% or .5% rate rise November ??

Economist predicts central bank's next few moves