News Archive for May 2017

In this week’s episode, the War on Waste tackles fast fashion and I’ve gone into it ready to come out feeling like a terrible person. I currently have three big bags of clothes stacked up in one corner of my room from when I cleaned out my closet a few weeks ago, and my wardrobe is still full. I am the problem.

In the midst of rate hikes and tightened regulations for interest-only and investment loans, there is some good news to be found for a different subset of borrower - owner-occupiers making principal and interest repayments.

If there was ever any doubt that the way Australians bank is well and truly changing, a new report has shown that Aussies are forgoing cheques and cash at historic levels, with a record 20% drop in cheque use in 2016 alone.

Whether it’s simply a matter of filling an empty stomach or an important part of the holiday experience, finding somewhere to eat is a necessary part of any globetrotting trip.

ANZ is supporting a new payment code compelling the major bank, along with all businesses who opt in, to pay suppliers on time and within 30 days of receiving a correct invoice.

If you’re planning to travel this year, you might want to exchange your spending money sooner rather than later, as the Aussie dollar is set to drop, according to experts.

Aussie drivers pay thousands of dollars a year just to get around, however the good news is that advancements in technology, such as driverless cars may bring down car insurance premiums in the near future.

Sydney has long been the top property market in Australia, with booming house prices and demand far outstripping supply. But the housing market is showing significant growth outside our capital cities as well, revealed a new report from the Housing Industry Association.

As regulations continue around the tightening of interest-only lending, NAB has raised deposit requirements on its interest-only loans.

In an Australian first the government-funded Clean Energy Finance Corporation will provide a $20 million cornerstone investment to peer-to-peer lender RateSetter to kickstart the online lender’s innovative green loan Marketplace.

The winners of FinTech Australia’s inaugural Finnie Awards have been announced, with familiar names Afterpay, Ratesetter and SocietyOne among them.

Australian fintech zipMoney has secured a $200 million funding line, part of a $260 million facility from NAB, boosting its future profitability and share prices, reported the Australian Financial Review.

Love shopping up a storm? Then you’ve probably notice more retailers offering the Buy Now, Pay Later (BNPL) payment platform, Zip Money*. At the time of writing, this BNPL service has more than 2 million customers across Australia and New Zealand and has a presence in 13 global markets, so it’s safe to assume Zip Money is here to stay.

The Australian life insurance industry has received yet more bad news as data released yesterday by the Australian Prudential Regulation Authority revealed profits across the industry decreased by 18.5% for the year to March.

More than a third of Aussies prefer fixed rate mortgages and many are even keen to lock in their rate for up to 30 years at a time in the face of interest rate uncertainty, according to recent research from Gateway Credit Union.

In this episode, we learn that it’s more economical to recycle than send rubbish to landfill, and yet Australia is still not doing it. Why not? The short answer seems to be we’re lazy and we don’t care.

CommBank has announced that it will begin accepting applications from investors looking to refinance principal and interest loans once again, effectively reversing the suspension the bank placed on these types of borrowers just three months ago.

Mozo has announced the results of its annual Experts Choice Home Loan Awards this week, and found that nearly two-thirds of the Low Cost Award winners were online lenders.

Australia’s big 4 banks have commented on the implications of the Budget’s big bank tax, estimating it will cost them each an average $241 million after tax. But it’s unlikely the cost will touch bank or shareholder profits.

While we’ve seen several home loan providers steadily lift interest rates over the last few months here at Mozo, the truth is that there are still bargains to be had in the investment loan department, especially when it comes to shorter term fixed rates.

With the end of financial year - and the end of financial year sales - approaching, Aussies may be gearing up to splurge on a new car soon. But bargain-hunting drivers need to be careful of rising car loan costs when shopping this year’s sales.

While over 80% of Australian parents are worried about protecting their families in the event of death or injury, more than a third are opting out of acquiring life insurance because of high prices according to the Real Insurance Family Protection survey.

Melbourne remains the most expensive city in Australia to insure your car with a comprehensive insurance policy, according to a report from the Australian Automobile Association.

Afterpay has released an app for iPhone and iPad aimed particularly at the millennial shoppers taking advantage of the take home layby technology.

If you regularly transfer money overseas, whether it’s to a loved one back home or for business purposes, you may be frustrated with the amount of time it currently takes to hit the recipient’s bank account.

In the face of soaring property prices in Sydney, the majority of Sydneysiders are blaming foreign investors - but experts say housing affordability is a much more nuanced issue than that.

From 1 July, the NSW Emergency Services Levy applied to home insurance policies, will be replaced by the Fire and Emergency Services Levy, paid along with council rates. But the change might hit Sydney-siders’ wallets harder than expected.

Property developer Tim Gurner, who told 60 Minutes that Australian millennials need to stop buying $4 coffees and travelling if they want to buy homes, has now received considerable backlash on social media.

Thousands of bargainhunters are expected to take advantage of Click Frenzy’s “Go Nuts” sale tonight, which offers discounts from over 200 retailers of up to 99% off.

The University of Newcastle has unveiled a printed solar demonstration site, one of just three comparable sites in the world, to test its printed solar panel technology which could provide a cheaper, more convenient renewable energy solution to Australian homes.

Clearance rates in two of Australia’s biggest property markets, Sydney and Melbourne, were strong over the weekend, but are likely to trend downwards in the coming quarter, according to Mozo’s property expert, Steve Jovcevski.

Online banking provider UBank has today unveiled the newest member of its customer service team - RoboChat, Australia’s first artificially intelligent virtual assistant for online home loan enquiries.

Major bank customers could wind up paying an extra $40 a month on their home loans, if banks do as they’ve suggested and hike interest rates in order to cover the Budget’s big bank levy.

It’s been a long time coming but ING Direct has finally started offering a credit card, named the Orange One, to its customers.

Stashing cash in a term deposit with a high interest rate is known for being a safe way to grow funds, however savers may be disappointed to hear that over the last two months a number of banks have reduced the value of their deposit accounts.

Aussie borrowers have been hammered with interest rate increases lately, but now there’s another cost for them to keep their eye on - home loan fees.

Could politicians be taking out our native wildlife at higher rates than anyone else in the country? It’s certainly a possibility, as a nationwide analysis of car insurance claims by AAMI found Canberra to be Australia’s number one animal collision hotspot.

Australia’s major banks have responded to the bank tax announced in the 2017 Federal Budget by saying that the cost will ultimately fall on the shoulders of customers and shareholders.

You may have heard the latest Federal Budget includes a tax incentive that will allow first home buyers to save up for their mortgage deposits faster, in a policy the government hopes will improve housing affordability.

While all eyes are on the 2017 Budget announcement, NAB has once again raised interest rates on its interest-only fixed rate home loans.

In the 2017 Budget announcement, Treasurer Scott Morrison announced a 0.06% annual levy on key funding sources for Australia’s major banks - a cost that could be passed on to Aussie borrowers and may drive them toward alternate lending sources.

As expected, the big 4 have totalled a profit of $15.7 billion for the first half of the year. They’re also set to rack up $792 million in extra interest over the next six months thanks to the recent home loan variable rate rises.

Australian regulatory bodies APRA and ASIC have begun the pilot phase of a new project which is set to make it simpler for Aussies to compare life insurance companies.

Westpac has raked in more than $4 billion from cash earnings over the last six months, a 3% increase for the major bank, who announced the results to shareholders today.

A new report on the Melbourne property market has highlighted the potential vulnerability of investors in the Victorian capital, with “record low” rental yields one of several factors that could cause future home loan repayment stress.

As Aussies grow more and more disillusioned with low value rewards points schemes, Qantas has announced that it will launch its own reward-focused platinum credit card by the end of the financial year.

Reserve Bank Governor Philip Lowe has weighed in on the national housing crisis just days before the Federal Government is due to release its 2017 budget, suggesting that high housing costs could continue to reinforce wealth inequality in Australia.

NAB reported a cash profit of $3.29 billion today, with a net statutory profit of $2.55 billion, which bounced back from a loss of $1.74 billion in the March 2016 half year.

Major energy retailer AGL has introduced a new offer for NSW, Victoria and Queensland customers which will likely be welcome news in the face of steep energy bills.

The big four banks are set to make an estimated $1.7 billion in extra interest each year, or $4.6 million a day, thanks to recent out of cycle home loan rate rises according to Mozo data.

BIG W has teamed up with Afterpay, in a partnership that will soon allow participating customers to order items via its online store, and pay off purchases over a 6 to 8 week period.

HSBC has introduced Apple Pay for its credit card customers, joining a growing number of banks opting in to the mobile payment technology.

The Reserve Bank has opted to keep the official cash rate steady at 1.50% yet again, as expected by the majority of economists.

NAB will soon restructure its rewards credit card program, which includes scaling back the earn rates attached to AMEX companion cards, while significantly reducing points caps across the board in a move expected to hit big spenders the most.

After you’ve picked a destination for your next big getaway, your first thought is probably about finding a cheap flight to get you there, right?

ANZ announced a Cash Profit of $3.4 billion today, after hiking rates for interest-only lending by as much as 0.40% on Friday.

The Commonwealth Bank’s suite of rewards credit cards are in for a revamp after the major has today announced that it will introduce a range of lower earn rates for American Express companion cards, while scrapping the foreign exchange fee on two of its AMEX premium companion cards.

The RBA official cash rate has held steady at 1.50% since August, and it’s likely to stay there for another month in the lead up to the May Budget announcement.