News Archive for July 2017

Australia’s housing affordability issues worsened over the June quarter thanks to record high house prices and Sydney was hit hardest of all, according to the Housing Industry Association.

In a surprise move potentially indicating the bank is preparing for a higher cash rate climate, ANZ has lifted term deposit interest rates attached to its 1, 2 and 3 year terms.

There’s no doubt that young Australians often get a bad wrap for their impulsivity when it comes to making financial decisions - focusing too much on avocado-based breakfasts rather than saving for a future home.

There’s been a lot of talk about a rate rise - or eight - in Australia’s future, but those in the know are cautioning that there’s not likely to be any change announced at the August RBA meeting.

Aussies are frequently choosing debit cards over credit cards when it comes to managing their spending, with young cardholders in particular preferring to steer clear of credit, according to the RBA’s Consumer Payments Survey.

Card payments have overtaken cash for the first time in Australia, with transactions on debit and credit cards doubling since 2007 to become the most frequently used payment method, according to the RBA’s recently released Consumer Payments Survey.

It’s that time of the year again when millions of Australians take on the arduous task of filling out their taxes, and with the temptation of a potential refund in the thousands of dollars it’s not surprising that many have lodged their returns already.

With interest rates on the rise, savvy borrowers willing to look around for a better home loan deal could be saving thousands of dollars every year, as Brisbane homeowner Jessica Steele discovered when she refinanced her mortgage.

Finance apps are outstripping the competition with total worldwide use increasing by 100% since 2014, and Australians doubling their use of financial apps, according to a report from App Annie.

It’s no secret that Australians love their cashless payment options, and it seems the big banks are following the trend with the announcement that Westpac is closing a number of traditional branches at the same time as ANZ opens its first cashless branch in Brisbane.

Despite growth in the Sydney property market lagging behind Melbourne’s in the June quarter, rising auction clearance rates have shown that demand for housing in the harbourside city remains high.

The month of July means one thing for millions of Australians: constant checking of their bank accounts as they wait for the arrival of that much sought after tax refund.

Urging the government to clamp down on poor quality property developments, the Insurance Council of Australia (ICA) has warned homeowners that they may start to see their home insurance premiums because of the rise in buildings constructed with questionable materials.

Less than half of Aussies are fully satisfied with their electricity plan when it comes to value for money, but even more have never switched plans in a search for a better deal, according to the biannual Energy Consumer Sentiment Survey from Energy Consumers Australia.

There’s been much talk lately about the minutes from the most recent Reserve Board meeting, in which it was revealed that the RBA discussed a “neutral” cash rate of 3.50%. Now, Deputy Reserve Bank Governor Guy Debelle has said the discussion shouldn’t necessarily be taken as an indicator of imminent rate rises.

56% of Australian consumers with debit and credit cards would rather make payments with their fingerprint, voice or retinas than punch in a PIN number at the checkout, research commissioned by Visa has shown.

Sydney’s property market may just have hit another record high, with the median house price now roughly $1.18 million, but when it comes to growth the harbour city is well and truly lagging behind the Melbourne market.

Online shopping just got a little more addictive - Aussies with a Citi credit card can now use rewards points to pay or partially pay for eligible purchases on Amazon.com.

APRA has announced that the big 4 will need to increase their capital ratios to at least 10.5%, in a bid to make capital requirements “unquestionably strong.” But while the move may safeguard banks, borrowers may end up getting higher interest rates out of the deal.

Challenger bank and home loan lender, ME has urged borrowers to ensure they’re prepared for a series of potential rate rises following the release of minutes from the RBA’s July 4th meeting.

There's a new breed of non-bank lenders revolutionising the business lending market in Australia and giving business owners more financing options and flexibility than ever before.

In a sign that confidence in the Australian clean energy sector is continuing to grow, the CEFC (Clean Energy Finance Corporation) has set a new record in its level of investment across the country.

Major bank ANZ has come on board with the Samsung Pay digital wallet platform, making it the first of the big four banks to allow its debit and credit card customers the choice between it, Apple Pay and Android Pay.

Federal Treasurer Scott Morrison has today announced new banking reforms that will allow credit unions and building societies to legally call themselves banks, in a move aimed at increasing competition between home loan providers.

Tap-and-Go credit card fraud alone cost Aussie cardholders $40 million last year, but Victoria Police have admitted it wouldn’t be worth shoppers reporting the fraud, revealed the Herald Sun .

NSW has managed to hold on to the number 1 spot on the HIA’s Housing Scorecard this year despite a slight drop in score - but it may not stay there for long, amid a projected Australia-wide slowdown.

Small business owners know that every dollar counts, and today credit card giant American Express has released a new piece of plastic dubbed the Business Explorer Card, aimed at getting SME owners more bang for their buck.

New figures from retail payment platform Afterpay show that millennial fashion lovers are driving demand for the modern layby technology, but are mostly concerned with their budget’s bottom line.

As the fintech market in Australia heats up, Melbourne-based startup Finch has launched a new app aimed at helping millennials to balance their finances with busy social lives.

Liberal backbencher Craig Kelly has claimed renewable energy is driving electricity costs through the roof and will kill people this winter, contrary to recent industry reports projecting that a Clean Energy Target could reduce electricity prices by as much as 60%.

Tightened restrictions around investment and interest-only lending are beginning to make an impact on investment activity, reported Banking Day.

If you're weighing up whether it’s worth covering yourself with travel insurance next time you head overseas, some newly released figures from InsureandGo may make that decision easier for you.

The price of transport in Perth is costing families around $16,652 every year according to the AAA’s (Australian Automobile Association) most recent Transport Affordability Index, with car loan repayments making the biggest dent in household budgets.

Every time you leave the house in the morning you probably do the same mental check as every other Australian - do I have my phone, keys, headphones, wallet and bag?

Only 38% of Australian businesses process Amex transactions according to market research firm East and Partners, indicating that a significant number of small businesses are reluctant to offer their customers the payment option.

Bank of Queensland has jumped on a growing trend to raise rates across its range of interest-only loans, while also reducing rates for customers making principal and interest repayments.

As electric vehicles become ever-more affordable to buy and run, the EV revolution may hit our roads sooner than expected, according to a new forecast by the advanced transport team at Bloomberg New Energy Finance (BNEF).

Westpac, along with 21 other financial institutions around the world have recently agreed to form a “validation group”, where they will test out a blockchain proof of concept (PoC) technology. If successful, the project could eventually lead to providers  such as Westpac offering real time international money transfers to its customers.

Do you ever find yourself dipping into your hard earned savings to pay for clothes or a trip away? Well you’re not alone, with new research revealing that Australians withdraw a whopping $30 billion each year from their savings accounts.

Solar power is set to be a major player in Australia’s renewable energy future as energy companies offer up new ways to make solar more affordable for households - including a “free power” scheme from German battery storage company sonnen.

Despite five weeks of an auction clearance downturn in the Sydney property market, the latest results have proven the housing boom is still alive with buyers snapping up 71.5% of dwellings listed on Saturday.

It seems South Australia has taken Tesla founder Elon Musk up on his offer of “100 megawatts of storage capacity in 100 days or it’s free” as his company gears up to build the world’s largest lithium ion battery.

The Commonwealth Bank has axed its internal process of bundling home loan and credit card applications together, to further support its commitment to responsible lending.

Flipping off the light switch might seem like the best way to reduce energy bills, but a new study has revealed that Australian households are missing out on huge power bill savings by not making the switch to better value energy providers.

Several lenders including ING Direct, Macquarie and Bankwest cut fixed home loan rates on principal and interest loans for owner occupiers in June.

Claims arising from mental health issues have long come under blanket exclusions on travel insurance policies, leaving some travellers footing hefty and unexpected bills. But some key players in the industry are now re-examining that rule.

Following moves by other banks ING Direct has announced it will raise the variable rates on several of its interest only home loans, in a move expected to affect not only investors but also owner occupiers.

The financial new year has come, and brought with it a bunch of changes in the world of banking. From keeping the lights on, to buying your first home, right through to your weekly Suits marathon, the way you spend and save your money is just a little different now.

Westpac has launched SmartPlan, a new credit card feature aimed at helping customers pay off their overall debt or individual purchases through a series of monthly installments.

The big banks might need to start slashing interest rates if they want to compete in the personal loan market, and ANZ is currently leading the charge.

This July, the Reserve Bank has left the official cash rate on hold at a record low of 1.50%, where it’s been since August 2016.

There's a quiet revolution going on in the otherwise boring world of banking: thousands of smart Aussies are cutting up their credit cards in favour of personal loans. And for very good reason, which we'll get to in a sec.

The Westpac Lite Card entered the market with a bang on Friday, boasting perks rarely seen in low rate credit cards such as a 9.90% purchase rate, no late payment fees and $0 foreign exchange fees.