News Archive for July 2020

Cards and digital payments are in, cash is out. That’s the major takeaway from newly released research from MyState Bank which found that two in three Australians (68%) have been using less cash since the COVID-19 outbreak began.

Say hey to Alex.Bank. An Aussie digital lender that's solidified itself in the personal loan game and is now looking to expand its banking horizons.

The shift towards an open banking system which puts more power in the hands of Australian customers is well and truly underway.

Ever heard of risk-based pricing or personalised interest rates? Well, if you’re on the hunt for a personal loan it may be something to get familiar with.

All in this week’s best banking news recap: editor’s pick.

Despite the recession and Covid-19, financial comfort for Aussie households has actually increased over the past few months. The question is, are these newfound comfort levels longlasting, or a sign of skating on thin ice?

It’s been another bleak week for at-call deposit rates, as ING becomes the latest bank to take the axe to its high interest savings offer. Coming into effect Thursday, ING’s 15 basis point cut brings the maximum rate available on its Savings Maximiser account down to 1.65%.Still, to earn this new maximum rate, customers must fulfil a couple of monthly conditions: deposit at least $1,000 into their linked ING bank account and make at least five transactions using their ING debit card. This move comes just days after Xinja also reduced the maximum rate on its Stash savings account by 15 basis points to 1.65%.

The dual shock of the coronavirus pandemic and the economic downturn has left industries reeling and the government scrambling to keep everyone afloat. But in typical Australian fashion, interest in the property market has hardly waned. Right now, there are a few big questions on everyone’s mind. Are property prices going to drop? Can interest rates get any lower? What will happen when the government support is finally tapered off? While there’s a fair share of uncertainty underpinning all that’s going on at the moment, a few trends have emerged which give us some sense of where the property market is heading. We’ve compiled a few need-to-knows below.

In July last year, the Victorian energy market went under intensive reform to improve prices and transparency for residents and was called the Victorian Default Offer (VDO).The VDO imposed a price cap on standing offers, which meant that retailers could no longer charge exorbitant prices for these energy plans. All previous customers on standing offer plans were then rolled onto the VDO. This week the Essential Service Commision (ESC) announced that from 1 September 2020, it will be extending the VDO to energy customers living in embedded networks, like caravans, retirement villages and even small businesses. According to the ESC, more than 104,000 customers will benefit from this reform. “Embedded network customers have not been fully covered by the same price protections as other Victorians. This ensures they now have access to a fair deal with significant savings for some,” said ESC pricing director, Marcus Crudden. Crudden said customers within embedded networks are expected to save between $180 to $360 annually, while small businesses could see savings of between $900 to $2,220.

Within the next few weeks, many Aussie households are expected to receive their latest energy bill. And for some, it won’t be good news. In fact, according to Mozo research the average household is expected to fork out an extra $88 a month due to an increase in electricity usage because of the Covid-19 lockdown. But there may be a silver lining on the horizon, as many retailers are acknowledging the financial strain the Covid-19 pandemic has had on Aussie wallets by announcing price decreases. On 1 July 2020, close to 20 retailers announced they would be cutting the electricity prices for customers located in either New South Wales, South Australia, South-East Queensland or the Australian Capital Territory. And in some instances, retailers have vowed to cut prices in all three states, like Powershop. “We are pleased to be able to bring some much needed relief to households in NSW, SE-QLD and SA, especially during winter and given many of our customers are spending more time at home, which may lead to higher power bills,” said Powershop CEO, Jason Stein. “Our existing residential customers saw our prices decrease on average by approximately 14.2% in South Australia, 8.7% in New South Wales and 7.5% in South East Queensland.” Other retailers cutting prices across NSW, SE-QLD and SA included energy giant, Origin Energy, Simply Energy and newcomer, Kogan Energy.

Buying your first home may be a huge milestone, but chances are you’ll eventually wave goodbye to that two-bedroom apartment or townhouse and move elsewhere. That could be due to a number of reasons, whether it’s needing more space to raise your kids or looking for a change in scenery. However excited you may be to hunt for your next home, that’s not the only big decision you'll have to make. You’ll also need to figure out what to do with your existing home: Will you sell or keep it as a rental property?The answer isn’t always straightforward, as there are pitfalls to watch out for. Mortgage broker from Two Red Shoes, Rebecca Jarrett-Dalton says one mistake is letting your emotions drive your decision - growing so attached to the property that you aren’t willing to let it go.“[Your decision] has got to be affordable and make sense. What you don’t want to do is cripple yourself that you can’t afford your new lifestyle,” she says. Instead she recommends crunching the numbers and consulting experts, such as a mortgage broker and an accountant, before locking in your final decision. The bottom line is, how much is your choice going to cost you and can you afford it? To determine whether selling or renting out is more financially viable for you, here are five key factors to consider.

When purchasing a brand new car, there are loads of different factors involved - finding the right car loan among them. With a seemingly infinite amount of finance options available, choosing a loan can be daunting.So to help get you started, we’ve put together a quick little wrap-up on the top five most popular cars in Australia of June 2020 (based on sales), according to the Federal Chamber of Automotive Industries (FCAI). Here’s how you might go about financing each with the right car loan:

Between tighter budgets and minimal spending, financial stress is at an all time high for many Aussie households.

Xinja Bank has cut the interest rate on its Stash savings account once again, bringing the new maximum rate available on the account to 1.65%.

Think the home loan market has cooled down? Not a chance. In fact, it’s hotter than ever with lenders falling over themselves to compete for Australians looking to refinance or take out a new loan.

Do you regularly resort to sneaky Google searches to translate financial terms in the news? Then let this alphabetised glossary of July’s money jargon guide you through the financial section of any morning bulletin or weekend trivia night.

Forty-four per cent of young people have either lost work hours, received a pay cut, been stood down or made redundant as a result of Covid-19, according to a recent report from ANZ.Young people have been hit hard by the current recession, but that doesn’t mean they’re down. We spoke with Melbourne-based millennials Maggie and Chloe about how they’ve managed to make ends meet during the pandemic.

If you’re on the hunt for a personal loan, one question that may be on your lips is, should I choose a secured or unsecured loan? Ultimately, the type of loan you choose could influence things like the interest rate you receive, what you can borrow for and what fees are attached to the loan. So which personal loan is right for you? Let’s break it down: If you have some assets, like a car or a home, you may qualify for a secured personal loan. An example of a typical type of secured loan is a car loan, used to purchase either a new or pre-loved car. Because you are putting up your goods as collateral, these types of loans often come with lower interest rates and fees. According to the Mozo database, the current secured variable rate averages sit at 9.04% (not including car-specific loans) and 7.62% (including car-specific loans). However, it’s important to bear in mind that providers of secured loans are able to seize your assets if you default on your loan.On the flip side, if you don’t have assets to secure against your loan, or you don’t want to put up your car or home as collateral, you could opt for an unsecured personal loan. You might use this type of loan to fund something like a home renovation or to cover an outstanding medical bill. While borrowers aren’t required to risk their assets against the loan, unsecured loans often have higher fees and interest rates attached to them. For example, at the moment the average variable unsecured personal loan rate on the Mozo database is 10.75%. What secured and unsecured personal loans are on the market at the moment? Check out these competitive options below.

Despite plenty of headwinds and a high volume of homes withdrawn from auction, activity in the property market is holding up across a number of capital cities, according to recent data from CoreLogic.As many as 1,344 homes in capital cities were taken to auction during the week ending 26 July, with preliminary clearance rates coming in at 59%. This was similar to the previous week’s result, which was later revised down to 53%.In Sydney, 602 homes were taken to auction, returning a preliminary clearance rate of 68.3%. This marks an improvement from the previous week, when a total of 515 auctions returned a final clearance rate of 61.4%.Canberra saw the highest preliminary clearance rates, with 80.5% of properties successfully sold at auction. Meanwhile, 60.7% of properties were cleared in Adelaide, 43.9% in Brisbane, and 28.6% in Perth.With plenty of challenges currently plaguing the Melbourne market, Corelogic expects the final clearance rate for the week to settle around 50%.

Between empty shelves at our local supermarket to applying for financial hardship for the first time, the Covid-19 pandemic has given everyday Aussies perspective. The pandemic has also given Aussies a new outlook on money. According to a new survey by ME, about 50% of Aussies are now having more money conversations, with 71% attributing the Covid-19 pandemic as the reason. “While the economic impact of COVID-19 has been a huge challenge for many Australian households, it has heightened our need to better understand our money, particularly among young Australians, who have not faced a crisis of this nature in their lifetime,” said ME general manager of deposits, John Powell. Some of the hot topics that made the rounds included savings (68%), household spending (53%) and bills (51%). Surprisingly, purchasing and selling property was the least popular conversation, followed by debt, while 28% talked about current government benefits, like the JobKeeper and JobSeeker scheme.  In terms of who they prefer to talk to about their finances, 62% of Aussies chose their significant other or partner, followed by family members (48%) and friends (35%). Interestingly, less than 10% said that they spoke to their bank or financial expert about their financial situation. “We’re of course more likely to have these types of personal conversations with those we know and trust, but it’s smart to also consider speaking with a financial expert where possible,” said Powell.

The situation for renters across Australia continues to ease, with new data from CoreLogic showing rents steadily declining. According to the property research firm, national rent values fell 0.3% in June, and 0.5% over the June quarter. CoreLogic notes this was the largest quarterly decrease in rents since September 2018, and the downward trend is likely to continue in the coming months.Capital cities saw the greatest declines, with rents dropping 0.7% over the June quarter. In comparison, rents across regional Australia have been remarkably resilient, increasing by 0.2% over the same period.“Closed international borders created a significant shock to rental demand, as historically the majority of new migrants to Australia have been renters,” said Eliza Owen, head of research Australia at CoreLogic.“Furthermore, job losses in sectors such as hospitality, tourism and the arts, which ABS payroll data estimates has been around 20%, have also impacted demand, because households in these sectors are more likely to rent than in other industries.”Before the coronavirus pandemic struck, growth in the rental market was fairly subdued, with national rents lifting just 1.1% in the five years to June 2020. This has been good news for renters but unwelcome news for property owners.While there were faint signs that rents would rebound earlier in the year - after a decline in investor participation saw the supply of new rental properties taper off - the coronavirus pandemic has tilted the playing field decidedly in tenants’ favour.Among major markets, Hobart recorded the steepest drop in rental values, with median rents falling by 2.3%. Sydney saw the second largest decline at 1.3%.Asking rents have also pulled back slightly as owners try to attract tenants. In Sydney, estimated median asking rents decreased by 1.6% to $568 per week. Canberra asking rents, which fell by 1.7%, currently sit at $566.In third place, Hobart has a median asking price of $454 a week, followed by Melbourne at $453, Darwin at $442, Brisbane at $439, Adelaide at $397, and Perth at $396.For more information on property and lending trends, visit our home loan news hub. And if you’ve got your sights set on buying, browse our home loan comparison page, or check out the selection below.

Bendigo Bank has cut rates for its Express Home Loan by up to 0.20%, bringing it down to 2.69% p.a. (2.86% p.a. comparison rate*) for owner occupiers and 3.04% p.a. (3.21% p.a. comparison rate*) for investors. The changes will see existing customers saving much more on their monthly repayments. For example, owner occupiers paying off a $400,000 loan over 30 years (P&I, LVR 80%) will be looking at savings in the range of $43 a month, or $516 over a year.

The superannuation numbers are in and things aren’t as worrisome as some savers may have anticipated given the economic impacts of Covid-19.Industry research group SuperRatings assesses balanced super options from the major 50 funds in Australia through their SR50 Balanced Index. Across the last 12 months, Suncorp has been performing the strongest within this group with returns of 3.8%. This was followed by balanced options from BUSSQ (2.5%) and Australian Ethical Super (2.4%). While the estimated median return sits at -1.2%, SuperRatings said the top 15 assessed options saw slim but positive returns.However, these ratings don’t take into account smaller funds which haven’t been operating for more substantial periods and thus can’t report long-term returns (which is a key part of the ratings metric). When newer players were considered, Future Super took out the top spot with its Balanced Index delivering 5.52% growth in the last financial year. The social equality and sustainability-focused fund also took home silver and bronze, with its Renewables Plus Growth and Balanced Impact options garnering returns of 5.26% and 5.21% respectively.Co-founder of Future Super, Kirstin Hunter said this data shows Aussies they don’t have to sacrifice financial gain to maintain their ethical standards.“At Future Super we’ve long understood that investment in unethical businesses doesn’t just have a detrimental impact on the environment and society, but also represents a bad investment choice that will damage how comfortably Australians can retire,” she said.SuperRatings executive director, Kirby Rappell, also reminded super members this kind of investment is a long-term game.“Members should avoid chasing short-term results and ensure they are invested in a quality fund with the right investment strategy that is well positioned to deliver for their needs over the course of their working life,” Rappell said.In SuperRatings’ ten-year assessment, the top performers have been AustralianSuper, whose balanced option has returned 8.8% p.a. across the last decade, followed closely by UniSuper and Hostplus. RELATED: How to build an emergency savings stash and leave your super intact.

The NSW government has announced that stamp duty will be temporarily eliminated for first home buyers purchasing newly-built homes, as the state looks to the residential construction sector to spearhead economic recovery.The changes will come into effect on 1 August 2020, and will raise the current stamp duty exemption threshold from $650,000 to $800,000 for first home buyers. Discounts will also be offered at a tapered rate on homes valued up to $1 million.Importantly, the exemption will only apply to purchases of newly-built homes, meaning those looking to buy existing houses and apartments will not be eligible. It will also be kept in place for 12 months.NSW Premier Gladys Berejiklian said the move will offer some much-needed support to the building sector, which faces a diminishing supply of work, and allow first home buyers to begin their property journey sooner."Thousands of people will see their bank balances benefit from this change - it will help get more keys into more front doors of more new homes," she said."It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before."It’s predicted that the changes will help up to 6,000 Australians. According to NSW Treasurer Dominic Perrottet, the increased threshold will spare first home buyers from having to pay up to $31,335 in stamp duty on a new $800,000 home.

All in this week’s best banking news: editor’s pick.

The Aussie banking industry recently introduced ‘open banking’, a new style of banking that puts customers in control of their data.

With MOVE Bank cutting interest rates by as much as 40 basis points today, term deposits have once again been shaken up.

While things might be a little different to this time last year, one thing that hasn’t changed is the winter chill. And unfortunately, as a large number of Aussies spend the majority of their time indoors, a jaw-dropping energy bill is to be expected. According to recent data by energy company Jemena, our electricity usage has jumped by 16% compared to this time last year, while businesses experienced a fall in electricity usage of between 10% - 12%. With Aussies having to tighten their wallets to manage expenses during the pandemic, a higher bill is far from ideal. According to Professor Sara Wikinson at University of Technology Sydney, some households are doing everything they can to soften the blow. She said that older Aussies are reducing their consumption by either cutting back their use of heating appliances, going to bed fully clothed or even skipping showers. "People are spending almost all their time at home, which is obviously pushing up their energy consumption. And [their] ability to hang out somewhere warm in the mall or community centre has gone," Wilkinson said. However, Powershop chief executive Jason Stein said that drastic measures are not always necessary and that simple savings can be made around the home. “With Australians spending more time at home this winter, energy bills may be higher. [But] there are some simple things you can do to try and keep your energy bills down and help save money,” Stein said. He recommended setting “your heater thermostat between 18–20°C in living areas, [as] every extra degree adds 10% to your heating bill.”“Switching off the game console after use could save a household of four up to $193 a year,” Stein said. Other tips include ditching your dryer for a clothes horse, investing in door snakes to plug draughts and improve insulation. And remember to switch off lights when you leave a room. If you’d like more energy savings tips that’ll not only keep you warm but keep costs down this winter, head on over to our energy savings tips hub!

The coronavirus pandemic and ensuing economic downturn have been threatening to topple housing prices for months now. While the property market has proven to be quite resilient so far, new research from Domain suggests the cracks are beginning to show. According to the report, Australian house prices fell by 2% and unit prices by 2.2% over the June quarter, the first quarter to show the impact of COVID-19. All capital cities saw drops in unit prices, while house prices fell everywhere except Adelaide, Canberra and Hobart.Domain Senior Research Analyst, Dr Nicola Powell said improved affordability, along with the rollout of a number of government incentives, has seen buyer interest recover after falling off a cliff in April. “The outlook for residential property has improved vastly in recent weeks. Sentiment towards housing and the purchase of a home has bucked the overall more negative sentiment around the broader economy,” she said.

Hold onto your hats folks, as online lender loans.com.au have got a brand new home loan rate you have to see to believe.

Popular online lenders loans.com.au and UBank are the latest to join the July home loan rate cut party, in a frenzy that's showing no signs of stopping despite the fact that home loan rates are now hitting uncharted territory of under 2.00%.

Mozo research shows that more than a quarter of workers currently relying on JobKeeper and JobSeeker won’t be able to afford their rent or home loan repayments if the government support ceases. This amounts to approximately 1.3 million Australians potentially unable to keep a roof over their heads.This analysis comes after the government announced changes to Covid-19 support payments on Tuesday. While JobKeeper and JobSeeker have been extended beyond the planned September end date, both will see a reduction in the coming financial quarter, and eligibility criteria will change for the Coronavirus supplement.Around 3.5 million workers are receiving JobKeeker payments and 1.6 million are relying on JobSeeker. This means approximately 42% of Australia’s 12.1 million-person workforce is being supported via these government schemes.Mozo’s data showed the vast majority of these people (92%) require this support to remain financially stable. In addition to the worrying housing situation, a third of surveyed income support recipients said they would not be able to afford to pay their bills if the payments stopped, with a fifth also unable to cover the cost of groceries.According to the Australian Bureau of Statistics (ABS), unemployment has reached a 22-year high of 7.4%, with 992,000 people recorded as officially out of work. “With the jobs market on life support, JobKeeper and JobSeeker payments are critical in ensuring people can remain in their homes and have enough money to cover necessary expenses,” Mozo Director Kirsty Lamont said.

If you’re a soon-to-be tenant of a property, you’ll need to pay a bond before moving in. But not all bond agreements are the same and the costs can vary. Generally speaking, they come out to about 2 - 4 weeks worth of rent, which can end up being a few thousand dollars. Don’t fret if you don’t have this money saved upfront, there are financial options out there to help you cover the cost, including a bond loan. Below we take you through the basics, how to apply for a bond loan and the different conditions that might impact your application.

In June, Treasurer Josh Frydenberg announced that Australia had officially entered a recession due to the Covid-19 pandemic, making it the country’s first in almost thirty years.

Just when we thought life was creeping back to “normal” a second wave of restrictions were announced across Aussie states and territories last week.

The Coronavirus pandemic is still affecting every inch of our lives. From where we go to what we read and even how we shop, so much has changed.

As the world grapples with the economic fallout of Covid-19, young adults are having to reconfigure their expectations of the future. Whether it’s putting travel plans on the back-burner, studying remotely, or entirely rethinking a career path or source of income, Australian teenagers will have to make some tough choices in the years to come.

Banking in Australia is changing, and quickly.

Sydney-based neobank Xinja has today revealed plans to launch its very own share trading platform named Dabble.

Today, Prime Minister Scott Morrison and Treasurer Josh Frydenberg announced the JobKeeper wage subsidy and JobSeeker Coronavirus supplement will continue beyond the planned September end date.

As many small businesses struggle to find their footing in a COVID-safe economy, the federal government has stepped in with another lifeline: an expansion of its SME Loan Guarantee Scheme.Under the existing scheme, the government guarantees 50% of business loans issued by participating lenders to small to medium-sized enterprises (SMEs). This guarantee initially covered three-year unsecured loans of up to $250,000 and was set to end on 30 September 2020. But the latest move means SMEs can soon access much larger loans of up to $1 million via the scheme and repay them over a longer period of five years. This second phase will run from 1 October 2020 until 30 June 2021. In other words, it’s due to start a day after a number of government stimulus programs (including the cash flow boost and apprentice wage assistance) expires.Phase two will also include secured loans (except if the collateral is commercial or residential property), and apply to a broader range of funding purposes beyond working capital.Treasurer Josh Frydenberg said the expansion reflects a shift in the government’s focus from aiding businesses’ short-term survival to supporting their investment in the longer run as they emerge out of COVID-induced ‘hibernation’.It comes after recent research found over a quarter of SMEs see lack of available funding as their biggest barrier to innovating and growing for the rest of 2020.A total of 41 lenders are currently participating in the scheme, including the big four banks (ANZ, Commonwealth Bank, NAB, Westpac) as well as non-bank lenders such as GetCapital, OnDeck, Prospa and Spotcap. So far, uptake has been lower than expected, with 15,600 businesses getting their hands on loans worth $1.5 billion, compared to the planned $40 billion. But CommBank’s chief executive, Matt Comyn said the expanded scheme will play an important role in small business recovery in the months ahead.“It is clear from the challenges that we are currently facing in Victoria that the recovery will not be as smooth or quick as first thought, which is why it is essential we come up with creative solutions that offer small businesses in particular different ways to play their part in helping the country and Australians get back on their feet,” he said. “[The] lifting of the amount available to $1 million and the loan extension to five years will allow SMEs … to make the investments needed to get people back to work, create new jobs and lift confidence across the economy.” NAB’s chief executive, Ross McEwan also welcomed the expansion. He said the changes will make the scheme “available to more businesses, for longer, to help them rebuild - and support Australia’s recovery.” Looking for extra finance to pay your staff or buy new equipment? Get started with a few deals below, or jump over to our business loans comparison table for even more options.

BOQ Group, which includes Virgin Money, will be revising its debt-to-income (DTI) policy for home loan applications, amid concerns that a growing number of borrowers will be unable to service large loans.Mortgage applications with a DTI ratio of above six, that is, more than six times the borrower or borrowers’ annual income, will now be subjected to greater scrutiny and must be accompanied by detailed supporting notes.The bank will also introduce a minimum nominal rental figure of $650 per month in its serviceability requirements for all home loan applications, effective 20 July.BOQ is the latest in a growing list of banks that have tightened lending criteria. Last week, ANZ informed brokers that it may be turning down loans with a DTI ratio of more than seven, beginning 3 August.Teachers Mutual Bank also reconsidered its appetite for risk earlier this month, lowering its DTI threshold from a maximum of eight to seven, and ceasing lending for off-the-plan property purchases.Since March, banks have made a number of changes in response to growing credit quality risks, including requesting more proof of income, withdrawing lenders mortgage insurance waivers, and denying loans to workers in vulnerable industries.Self-employed applicants and those who are employed on a casual or contract basis may have also found it’s much more difficult to secure a loan or get approved for the amount they want.RELATED: Could tougher lending rules shut out first home buyers?All this has tempered the enthusiasm many first homebuyers (and anyone else with sights on the property market) may have felt at the news of potential dips in housing prices. But according to Mozo’s property expert Steve Jovcevski there are workarounds.“First homebuyers will have to become more disciplined in their savings habits. In a situation where people are being encouraged to stay at home, make the most of it by spending as little as possible and saving as much of a deposit as you can,” he said.“Lenders will be looking at your spending patterns in the three months before you apply for a home loan, so the less you spend, the greater your serviceability will be.”He also recommends being mindful of your credit score. Making too many credit applications can signal to lenders that you're reckless with your finances, which could jeopardise your chances at securing a loan.“Don’t apply for credit cards or personal loans, and even when you’re looking for a home loan, avoid making inquiries with too many lenders. Do your research upfront and only apply to a few once you’ve narrowed down your search,” Jovcevski said.For an overview of home loans currently available, visit or home loans comparison page, or browse the selection below.

When headlines pile up, it can be hard to see what the actual news is. I find this happens a great deal with economic news, where too often rate cuts, market drops and price hikes cloud the big picture. This can lead to sudden reactionary behaviour by punters and before you know it, the news has shifted again.

The truth is, not all car loans are the same. While some interest rates are as low as 2.99%, others go all the way up to a hefty 11.49%. So if you need a hand weeding through the loans on offer to find yourself a good deal, you’ve come to the right place.

One of the great benefits of using solar power is the flexibility of being able to produce and export your own electricity as needed.

New research has found that a large percentage of the population are adopting more mindful shopping habits as a result of Covid-19.

With the launch of a new innovative payments platform, Australian fintech company The Payment App has thrown down the gauntlet to competitors PayPal and Square. The minds behind this new technology are determined to revolutionise the industry, including how businesses utilise digital payment platforms.

All in this week’s best banking news recap: editor’s pick.

Times may be tough, but first home buyers aren’t giving up on their property ownership dream just yet. New research shows that over half of these Australians plan to make a purchase in the next 12 months.ME’s latest Quarterly Property Sentiment Report released today found 51% of first home buyers want to have joined the property market by mid next year, up from 42% last quarter. And they’re the most eager of the bunch, with the report revealing that, by contrast, only 39% of investors and 22% of owner-occupiers share those same intentions.Among first home buyers, the vast majority are looking to get their foot in the door by taking advantage of property price drops due to COVID-19. In fact, 82% of first home buyer respondents said they’re keeping their eyes peeled for bargain properties for sale, compared to 66% of investors and 57% of owner- occupiers.These findings are based on surveys with 1,000 Australian homebuyers in June, when COVID-19 restrictions first began to ease across most states and territories. ME’s general manager of home loans, Andrew Bartolo said the surge in first home buyer enthusiasm could be due to a number of factors.“First home buyers may be looking to find the silver lining in the current economic climate, thanks to greater potential for property price falls, record low interest rates and government support,” he said.

Building a home can be an enticing option for many Australians, but there are plenty of unforeseen costs that can come into play. What comes included in a contract for one builder might be an optional extra for another, and there’s always the chance the overall price ends up several thousand dollars more than expected. Below are just a few things to keep in mind when drawing up your budget.

Small businesses are bearing the brunt of big firms’ tardiness, with new research showing 53% of their invoices aren’t being paid on time.

More than 30% of young Queensland drivers don’t know what their comprehensive car insurance policy covers, according to a recent study from QLD car insurer RACQ. This can be pretty costly any way you look at it. If you’re underinsured, you could end up having to cover massive costs after an accident. Or you could be paying for additional features on a comprehensive plan which simply don’t apply to your circumstances.This got us thinking: how much does the average person know about car insurance when they start driving? Unless you’re a total motorhead or vintage car enthusiast, you may not have a complete understanding.So, to get you on the road to the right level of cover, here are answers to some of the biggest car insurance questions.

Over the last few months, we’ve seen the Covid-19 pandemic affect all aspects of day-to-day life, from grocery shopping to heading into work.

Two of the highest ongoing savings account rates in Australia are being reduced again, with neobanks 86 400 and Up both dishing out the rate cut treatment this week.

For many small business owners, a key ingredient to staying afloat in 2020 has been accessing professional advice. As new research shows, a whopping 74% turned to a financial advisor for support amid coronavirus shutdowns.

Whether you’re an Aussie sending money overseas or investing in assets abroad, chances are you’ve noticed the Australian dollar (AUD) has fluctuated significantly over the first half of 2020.

Four years after debuting in Australia, Apple Pay is now available to customers of both ME and Heritage Bank following separate announcements last week.

St.George today announced it will be helping Australians kick off their property journey sooner. Effective today, the bank will lower Lenders Mortgage Insurance to just $1.00 for eligible first home buyers with a Loan to Value Ratio of up to 85%.Typically, home buyers who have saved up a deposit of less than 20% of a property’s value will have to purchase LMI, which can cost thousands of dollars. The move from St.George will give those with a deposit of 15% a chance to keep that money in their pocket.To be eligible, you’ll need to be a first home buyer taking out an owner occupier, principal and interest loan of up to $850,000 (meaning the maximum value of the home will have to be $1,000,000).St.George General Manager Ross Miller said first home buyers face a number of challenges ahead of their property purchase, though many are in a stable enough position to make home loan repayments.“We are seeing many pain points experienced along that savings journey, including giving up holidays, reducing entertainment expenses, having to move back home with parents, moving in with friends or even leaning on family members to help top-up savings,” he said.“By reducing the expense of Lenders Mortgage Insurance, first time purchasers may be able to afford a property that meets their needs sooner and save thousands of dollars.”RELATED: One third of Aussie millennials plan to buy a home by 2022While present economic conditions haven’t been favourable to many, they have opened up opportunities for those with sights on the property market, who have been heartened by record low home loan rates and steadily dropping property prices.In fact, research from St.George found that one in 10 Australians looking to buy a home are doing so for the first time, and the COVID-19 pandemic has made saving for that goal a priority for one third of Australians.“Australians have spent more time at home than ever before during the COVID-19 restrictions, and we are seeing a bigger trend in how the nation is re-evaluating their current living situation. For example, three quarters of people would now prefer to live in a house over an apartment,” Miller said.“First home buyers are calling for new ways to achieve their home ownership dreams sooner, and this option is designed to help make that goal within closer reach, particularly with the added benefit of a record low interest rate environment.”For more information, browse our St.George home loans page. And to see how the home loans on offer stack up against others on the market, head over to our home loans comparison page, where you’ll be able to filter your search by rate and type.

It’s out with the old and in with the new for Aussie Millennial rewards credit card customers.

Australia's home loan market is in the midst of a massive shake up, with a tidal wave of new lenders taking on the big banks and breaking records left, right and centre as they fight it out to win borrowers over.

UBank has taken the axe to home loan rates once again, announcing cuts of between 10-15 basis points on variable loans for both new and existing borrowers. This follows cuts to select fixed rates earlier this week.

If you’re an American Express customer, have we got good news for you! Today, the credit card provider has launched a brand new feature, called ‘Plan It’, an alternative to traditional 'Buy Now, Pay Later' (BNPL) platforms.

With the number of online retailers growing and COVID-19 keeping Aussies indoors, many consumers are now opting to shop from home almost exclusively.

With competition continuing to flare up in the Australian home loan market, homeowners looking to switch over to a better deal are in for a nice surprise.

As more Aussies purchase electric vehicles (EVs) for their regular transportation, experts have already begun tossing around ideas of how they can be used to their full potential.

Covid-19 has led to a surge in cryptocurrency trading according to Zipmex co-founder Marcus Lim. Lim puts this new interest in virtual currency investments down to worldwide job loss, lockdown and travel restrictions.

All in this week’s best banking news recap: editor’s pick.

The goal of home ownership seems more attainable than ever for many millennials as a result of Covid-19 market conditions, according to a new report from ING.

Westpac today announced a new interest rate for young savers that’s leading the competition by strides.

Aussies looking to save money on their home loan and earn thousands of dollars cashback into the bargain have been rushing to snap up the generous refinance cashback offers available with Commonwealth Bank, Bank of Queensland and Suncorp this month.

Important disclaimer: this article is factual information only and does not contain any advice or recommendations about what you should do with your own superannuation.

While competition remains fierce in the Australian home loan market with plenty of good deals around, lenders are pulling the reins in on which borrowers can access their lowest rates.

With the economy in flux, there’s even greater pressure on Aussies to stay on top of their finances. But the strain is perhaps greatest on working mums. Mozo’s latest research shows that during the COVID-19 lockdown, 28% of women acted as the primary career for their children, while also working, compared to just 7% of men. Mozo Director, Kirsty Lamont says that being a primary carer heightens your workplace vulnerability with many of our survey respondents reporting they have struggled to make strides in their career after taking leave. This is creating what might be best termed, a ‘pink recession’: a long-term financial crisis for many working women.

While 2020 has been a tough year for small businesses, a whopping 92% still hold high hopes for the future, new research shows.

The decision by some banks to extend mortgage deferrals will come as a relief to struggling Australians, who were only a few months away from a financial cliff. But it may have also prevented a potentially devastating shock to the economy.

According to a recently released survey by KPMG and the Financial Services Council, life insurance claims related to mental health increased by a whopping 53% between 2013 and 2018. This new research is very timely, given that a large number of people across the country have just spent months inside due to the Coronavirus pandemic.

Australian banks will be extending support for struggling customers, announcing today that borrowers who have paused loan repayments will be able to defer for an extra four months.

Mozo’s latest report has found that Covid-19’s impact on travel remains a top concern for many Australians. Some would-be holidaymakers are still reeling after losing significant funds because of cancellations, while others are already planning post-isolation holidays.

The Reserve Bank of Australia kept interest rates unchanged at its latest policy meeting, as the country continues to grapple with the fallout from the coronavirus pandemic.

As the property market loses steam and lenders look for ways to boost their mortgage books, some of the nation's top home lenders are fighting it out with generous cashback offers and discounted rates to entice home loan refinancers looking for savings.

Even though we might not be in regular contact with our energy providers, we rely on them everyday to power our homes and trust they’ll be there when we need them.

With international travel plans axed, employees working less hours and some savings accounts looking thinner, Aussies are starting to tighten their wallets.

Finding simple ways to save on a home loan can be tough, but CommBank has made that task a little easier for Aussie refinancers with its new limited time $2,000 cashback offer.

All in this week’s best banking news recap: editor’s pick.

With the news that some energy retailers are announcing price decreases from July 1, many Australian households will be looking forward to seeing a difference in their energy bill.

Now that the new financial year is upon us, Aussies can expect a whole heap of changes to their household finances that will (hopefully) make life a little bit easier. We run through a few of the main ones below.

Congratulations, you’ve officially reached level seven (July) of Jumanji (2020). After everything that’s gone on in these past few months, I’m sure many of you are ready to just put up the Christmas tree and call it a year - am I right? But hey, you’ve made it this far! What’s another six months?

With fixed home loan rates at record lows, if you’re not on the refinancing ball right now, you could miss out on some serious savings.

Term deposit rates at or above 2% are officially a thing of the past according to Mozo data*.

Australian used car prices bounced back in May, and it looks like they’re set to stay.

Just when the market appeared to be quietening, some seismic shifts at the lower end of the home loan market have changed the rate landscape once again according to the latest edition of the Mozo Banking Roundup.

Open banking is here. From July 1, Aussies will have the ability to share their data with providers other than their own and potentially lock in better offers on their everyday banking products.

The coronavirus pandemic continues to chip away at property prices, with the CoreLogic Home Value Index recording a decline of 0.7% in June - the second month in a row it's seen prices drop. Among capital cities, dwelling values fell by 0.8% over the month, led by both Melbourne (-1.1%) and Perth (-1.1%). Sydney saw the third largest decline, with prices down by 0.8%. Adelaide and Brisbane were relatively spared, recording price drops of just 0.2% and 0.4%, respectively. Meanwhile, indices for Hobart, Darwin and Canberra showed slight increases of between 0.1% and 0.3%.CoreLogic head of research Tim Lawless said the impact of the coronavirus pandemic on property prices has so far been mild, and year-on-year growth remains strong for most capital cities. “The twelve month change in home values remains in positive double digit territory across Sydney (13.3%) and Melbourne (10.2%),” he said. “The only capitals where values show declines on an annual basis are Perth and Darwin, but even across these cities, home values were early into a recovery phase pre-COVID."

The EOFY has come to a rather somber close for Australia’s savers, with savings account rates dropping across the board in June. According to Mozo’s database, the average ongoing savings rate is now 0.71% p.a.

Teachers Mutual Bank has announced it will be participating in the second release of the First Home Loan Deposit Scheme (FHLDS), with applications opening today.

As Victoria braces itself for a potential second wave of Covid-19 cases, increased restrictions are set to put a further strain on the state’s small businesses. And while things might not have slowed down for the energy industry, there is a way Victorian small businesses can take some of the heat off upcoming bills: switching to a lower market offer. New research by the Essential Services Commission (ESC) has revealed that VIC small businesses have the potential to each save $2,400 a year on gas bills just by making the switch.If 10,000 small businesses did so, they’d collectively save a jaw-dropping $24 million. According to the regulator, default gas offers (the plans customers are placed on if they don’t shop around) could be reportedly up to 24% more expensive than discounted offers. “This finding shows how important it is to pick up the phone and talk to your energy retailer about their best offer,” said ESC chief executive, John Hamill. “Small businesses could be experiencing bill stress during this challenging period and these potential savings could provide some welcome relief.”Data from the ESC also found that by the end of May, approximately 684 small businesses were receiving payment assistance from their gas retailer and owed an average of $1,441 on their gas account. Electricity debts weren’t any better, as a massive 2,488 small businesses owed their retailer an average of $1,141.

Aussie spending has been turbulent in 2020, with the devastating effects of the bushfires into the outbreak of COVID-19.