News Archive for October 2020

With the holiday season on the horizon, many Australians are eagerly making plans to send money to their loved ones abroad for Christmas. However, the cost of international money transfers can quickly add up, eating into the intended gift budget. That's why finding the cheapest ways to send money overseas has become a top priority for many.

The world of car insurance is speeding into some serious changes, which could bring exciting new ways to save money and drive better value out of your insurance policy in 2024.

Sending money overseas just got even more competitive, with TransferWise announcing a series of price cuts this week for Australians transferring money to Asia. TransferWise Australia users can now save up to 23% in fees when moving funds to 10 different Asian countries, including China, India and Thailand.The exact savings will depend on the destination and amount sent. For instance, AUD 1,000 transfers to China cost 13% less than before, which means you would pay $13.11 instead of $14.95. Meanwhile, the cost of sending AUD 1,000 to Sri Lanka has fallen by a much larger 23%, reducing the fee from $9.72 to $7.52.Below is a full breakdown of TransferWise’s fee reductions:

Your loan-to-value ratio (LVR) refers to the amount you need to borrow compared to the property’s value, expressed as a percentage.

The Reserve Bank of Australia looks poised to cut official interest rates by 0.15% next week, which would leave the cash rate at a record low 0.1%.In recent speeches the RBA has signalled a willingness to take the cash rate below its current setting while keeping it above zero. Speculation reached a fever pitch in the lead up to last month’s meeting but ultimately the Board decided against making a move.For Mozo’s banking expert Peter Marshall, November is almost certainly the month the RBA will opt for further easing.“It’s obvious that things are going to take a very long time to recover, and while the bank stood by to let the government have some clear air for the budget in October, it’s now ready to step in and support the budget measures,” he said.A number of economists have also backed a November cut. CBA chief economist Stephen Halmarick believes the Board will push further into the “conventional unconventional monetary policy space” next week. “This easing is expected to involve a cut in the three key interest rates – the cash rate target, the three-year bond yield target and the term funding facility target from 0.25% to 0.1%,” he said.“Critically, this easing of monetary policy is expected to be implemented at the same time as the RBA looks set to revise upwards their economic forecasts given the run of better economic data.”Westpac chief economist Bill Evans also anticipates a change in the bond purchasing program, though he does not expect the Board to set a specific quantity target.“It is already setting a price target for the three year rate. Fixing both price and quantity targets may lead to unexpected difficulties down the track,” he said. While the RBA's bias against negative interest rates has softened somewhat over the last six months, the possibility the cash rate will dip below zero remains unlikely.“There's no evidence that they have yet given such a move serious consideration, and they are likely to continue to rely on other methods of supporting the economy for some time yet,” said Marshall.

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

According to recent analysis by the Australian Competition and Consumer Commission (ACCC) of more than 1.5 million electricity bills, there are more households on market offers and fewer on default offers. A market offer refers to an energy plan advertised by a retailer and can include things like discounts and other incentives. On the other hand, a default offer is the maximum amount a retailer can charge for electricity and is typically a bit pricier. If it’s been a while since you last switched energy retailers or if you’ve never switched retailers, you will most likely be on a default offer.“We often talk about the lazy tax and how much extra it could be costing Aussies who don’t make the effort to shop around on households expenses, like their energy bill,” said Mozo Director, Kirsty Lamont. “Recent Mozo research found that in New South Wales alone, switching from the average to the cheapest electricity plan could save households $286 a year.”So if you’re thinking it’s time you got serious about your energy bill, we’ve jotted down some of the key things to keep in mind when comparing energy plans.

For the second year running, Virgin Money has been crowned a winner in the Mozo Experts Choice Insurance Awards.The insurer has continued to shine as a top value-for-money provider, scoring a medal in the Exceptional Value awards category on both occasions. This year, the Mozo expert judges analysed 56 home and contents insurance policies using more than 15,000 customer quotes. They found Virgin Money’s policy was one of the consistently lower price options compared to similar products.When assessing policies for ‘value’, the judges were looking for options which provided extensive coverage while keeping premiums as affordable as possible. This is to ensure insurance customers looking for cheaper options find the right level of cover for their circumstances as well as their budgets.Get to know Virgin Money’s award-winning policy below:

Digital payments platform Azimo has become the latest international money transfer fintech to set up shop in Australia, joining the IMT scene today with a promise to deliver competitive exchange rates and fast speeds to customers. The UK-based service has operated in Europe since 2012, and now eight years on, it's set its sights on Australia as its next large sending market. “We’ve always been more interested in the Asia Pacific than the US,” Azimo’s chief operating officer, Dora Ziambra says. “Australia is also an English speaking country where there’s less localisation needed [than other Asian Pacific countries], and it’s a place where 30% of the population is foreign born and has connections to another country. So it lends itself as a next step of international expansion.”And with AU$28 billion remittances sent abroad from Australia every year, Ziambra says “there’s still room for Azimo to offer a competitive product.”She says Azimo stands out from other digital players in terms of the breadth of its network and its wide range of payout methods. “We cover a lot more countries … and [in addition to bank-to-bank transfers] we offer cash payout, mobile wallet, mobile top-up, sending credit to phone, home delivery in some cases, and bank deposits.” Customers are able to send money to more than 200 countries and territories, including China, Vietnam, the Philippines and Thailand. And while large IMTs with many other providers can take between one to five working days to process, Azimo says most of its transfers arrive in less than 24 hours. Instant transfers are also available for over 50 countries, depending on which payout method you choose. For example, while sending funds to a Thailand bank account would be instant (i.e. complete in a few minutes), for transfers to the Philippines to occur immediately, you may need to opt for a cash pickup instead.Azimo is also expected to appeal to Australia’s Chinese expat community, with instant transfers available thanks to Azimo’s integration with Alipay, a major online payments platform in China. All the customer will need is their recipient’s AliPay ID to send money instantly in yuan. “Delivery speed is something we keep investing in,” Ziambra says. “A lot of our customers - as many as 75% - send money for family support, so getting the money there as quickly as possible at the best price possible is what we aim to offer.”

If you’ve been looking for a sign to downgrade your high interest credit card, this is it. According to the latest Mozo research, if Aussies switched their high rate plastic to the market leading low rate card, we’d collectively have an annual saving of $2.1 billion or or an annual saving of $570* per cardholder! We found that the highest credit card interest rate in the Mozo database clocks in at a whopping 24.99%, 17.50% higher than the lowest credit card rate on the market. Mozo Director Kirsty Lamont believes now has never been a better time to make the switch, as many high rates come with rewards and perks that are out of the question until further notice. “At a time when travel linked rewards on high interest rate credit cards largely grounded due to the pandemic, getting value through this premium card category has become more challenging,” she said.

There are currently more mobile phone connections (close to 33 million) than there are people in Australia, according to the consumer data researchers at Statista. Unless you can text simultaneously in each hand, this means there are heaps of powered-down phones just taking up space.Rather than let your old smartphone sit in the odds-and-ends drawer and become less relevant by the day, you could think about selling it.EBay estimates there is $7.8 billion in unused smartphones languishing in Australian households. The digital marketplace juggernaut says potential sellers could make up to $386 more by selling well-preserved devices via its platform instead of trading in after an upgrade.   And it looks like plenty of Aussies are jumping on board, with 76,626 secondhand smartphone sales recorded on eBay since the beginning of 2020 – that’s around 11 handsets changing hands every hour.Gumtree’s Second Hand Economy Report also shows there are big bucks to be made through more sustainable selling. It calculates the pre-loved economy is worth $42 billion in 2020, which is a $3 billion increase on the nine previous years analysed by Gumtree.

From a warm bath to an hour long massage, we all deserve a little luxury every once in a while. But if you're keen to indulge in a bit of luxury with your shopping habits, you might be considering picking up a rewards credit card. Unlike a regular credit card, these flashy pieces of plastic are loaded with a range of features and rewards. So if you’d like to find out what extra perks you could get your hands on, check out our list below.

There’s a chance you’ve heard murmurings or even read theories online about how car colour affects insurance. A quick Google search on the subject will bring up lots of articles, reports and questions on how a splash of paint could make your wheels more or less likely to be stolen or involved in an accident.

While 1 in 4 Australian drivers think their car insurance is too expensive, a third aren’t looking for better value policies, according to Mozo's 2020 Car Insurance Report.

The COVID-19 pandemic has turned the economy on its head and forced many of us to rethink our financial goals, but new research from ING has found Aussies’ interest in the property market has hardly waned.In a survey of 2,075 Australians, nearly half (44%) viewed property as the current strongest investment option and over a quarter (26%) believed now is the best time to get a foot on the property ladder.“The research suggests COVID-19 has left many Aussies cautiously thinking about how they can invest to take greater control of their financial future,” said ING’s head of home loans, Julie-Anne Bosich.“While, understandably, not everyone is in a position to use their finances to invest, our research has found that for those who are, the preferred investment choice is property, especially in the current climate where interest rates are at a record low.”Among this property-hungry cohort, young Australians are well-represented. 25% of millennials surveyed said they are currently saving to purchase a home and 50% felt positive about their chances, with low interest rates and dipping prices the main drivers of confidence.RELATED: Why a 1% difference in your home loan rate mattersHaving fewer opportunities to spend has also worked out in Aussies’ favour, with 37% of respondents saving more than usual since the pandemic struck and 56% stating they are currently in a better position to achieve their financial goals.As for where Australians are looking to buy, 28% of respondents are currently eyeing Melbourne, followed closely by Sydney (24%), Brisbane (17%), and the rest of New South Wales (16%).It’s perhaps no surprise that Melbourne currently tops the list of most sought-after locations. According to property research firm CoreLogic, Melbourne property values have fallen a staggering 5.5% since March.Since restrictions were eased and property agents given permission to resume onsite inspections, new listings in the city have jumped up by 330%.“The result is likely due to months of pent-up decisions to sell from vendors, and reflects how the real estate transaction process has remained tied to physical inspections,” said CoreLogic head of research Australia, Eliza Owen.If you’re looking to purchase an investment property of your own, be sure to check out our investment home loan comparison page, or browse the selection below.

2020 has been an odd one to say the least. Whether your travel plans have been cancelled, you’ve rearranged your wedding or home renovation, or your finances simply aren’t what they used to be, a personal loan might help you get back on track. It’s true, in some cases it’s more convenient to reach for your credit card to make purchases. But if you have a big expense coming up or find yourself needing to cover a large bill, a personal loan may actually be the better option. According to the Mozo database, the average interest rate on a secured personal loan sits at 8.01% and the average unsecured personal loan rate sits at 10.24%. Meanwhile the average credit card interest rate is 16.35%. So, if you think that your situation might be a good one to consider a personal loan, check out some of these examples below.

For many Aussies, Christmas has the tendency to sneak up. Before we know it, we’ll be dropping bundles of cash and draining our savings. But if you’re keen on getting a bit more financially savvy with your Christmas shopping this year, why not try picking up a 0% purchase rate credit card?As the name suggests, a 0% purchase rate credit card is a type of card that comes with no interest, but for a specific time length. After the 0% interest period is up, the card then reverts to a purchase rate that can range from anywhere between 11% - 14%. While the idea of interest-free spending might sound like a Christmas miracle, there are a few things to keep in mind before signing the dotted line.

This past weekend Suncorp removed a bunch of fees from its transaction accounts.

Looking for deets on the best life insurance and income protection in 2021? Check out all the winners in the 2021 Mozo Experts Choice Life Insurance Awards, and find out why NobleOak was one of only two insurance providers to take home an award for Exceptional Quality Income Protection.

You’ve probably heard the term “write-off” in relation to car insurance before. But unless your car has been awarded that unfortunate title, you might not know exactly what the classification means.

The unwinding of restrictions in Victoria has given a boost to the real estate market, with research firm CoreLogic recording a wave of activity from sellers in the state’s capital.Since property agents were given the green light to hold onsite inspections, the number of new listings in Melbourne has swelled from 1,606 to 6,974 — an increase of around 330%.“The result is likely due to months of pent-up decisions to sell from vendors, and reflects how the real estate transaction process has remained tied to physical inspections,” said CoreLogic head of research Australia, Eliza Owen.According to the data, the volume of new listings in Melbourne topped all other capital cities in the four weeks to 18 October, bringing total advertised stock in Melbourne to more than 21,000 properties.There was an increase in new listings in 39 of 40 SA3 regions in Melbourne, with Macedon Ranges the sole underperformer. The areas with the greatest recovery of volumes were Wyndham (314), Melbourne City (273) and the Whittlesea-Wallan region (256).While the amount of new listings could point to a potential market rebound, Owen doesn’t rule out the possibility that distressed sales are behind the uptick.“A significant increase in new stock across Melbourne can mean different things for the state of the market. ‘Forced’ selling was a possibility from the pandemic, as significant job losses across Victoria may have limited the ability of some households to keep paying their mortgage,” she said.RELATED: Repayment holidays lower mortgage stress to near pre-crisis levelsWhile it will take some time to get an accurate read on buyer sentiment, due to the time it takes before a listed property is transacted, there are certainly signs that conditions in the market are improving.“New stock added to the market increased by around 5,370 properties, but the change in total stock was only 4,790. This suggests at least some stock on market has been absorbed over the past four weeks,” said Owen.“In the week ending 18th of October, the final auction clearance rate of 60.2% across Melbourne, was achieved alongside the highest volume of auctions seen in two months. Over the past month, the rate of decline across Melbourne dwelling values has also eased.”For more mortgage and property trends, browse our home loan statistics page. And if you’re after a home loan, visit our home loans comparison page, where you’ll be able to filter your search by rate and type.

ING has blown competitors out of the water after announcing massive rate cuts across its investment home loans today. The ING Mortgage Simplifier for investors taking out a principal and interest (P&I) loan of over $150,000, fell by 50 basis points (bp) from 3.19% (3.22% comparison rate*) to a stellar 2.69% (2.72% comparison rate*). This rate change means it’s jumped in rankings to be the second lowest basic variable rate offer in the Mozo database among investment loans (excluding those with offset accounts) - tied with People’s Choice Credit Union’s Basic Variable Home Loan and 10 bp behind Credit Union SA’s Discounted Home Loan Special Offer.

Despite unprecedented economic headwinds, mortgage holders across Australia have managed to stave off default, with new research from Roy Morgan showing levels of mortgage stress approaching pre-crisis levels.In the three months to August 2020, an estimated 751,000 mortgage holders (20.2%) were considered ‘at risk,’ while 433,000 (12.5%) were considered ‘extremely at risk.’ According to Roy Morgan, both numbers are among the lowest recorded.Apart from Victoria, which had re-entered lockdown at the time following a second coronavirus outbreak, most of the country was “progressing towards a ‘COVID-normal’ situation,” thanks to a raft of support measures from banks and the government.This comes despite 11.2 million Australians (72%) experiencing a change to their employment circumstances due to COVID-19 in May, with that number remaining elevated at 10.4 million in July.For many, these employment changes were negative, and included a drop in hours worked, a slowdown or halt in business activity, being stood down, having pay reduced, and being made redundant.RELATED: Why a 1% difference in your home loan rate mattersAccording to Roy Morgan chief executive, Michele Levine, changes like these are typically associated with an increase in mortgage stress, with job loss in particular causing an immediate jump into a risk category.“Over two-in-three mortgages rely on more than one income and our analysis shows losing even the lower of these two incomes causes an immediate quadrupling of those mortgage holders considered ‘at risk’ or ‘extremely at risk,” she said.While the current support measures appear to have fortified the property market, Levine worries they have merely kicked a potential real estate crisis further down the road.“Because of these measures the impact of COVID-19 is yet to be fully felt, but we already know there will be significant pressures emerging when the support ends,” she said.“JobKeeper has already been reduced in early October 2020 and is set to end entirely by April 21 while the mortgage deferrals offered by banks to customers in financial distress are set to run out at the same time.“One of the biggest tasks for banks during the present period is to determine which customers will be able to return to paying their mortgage in the period ahead and which customers will not have that capacity when the deferrals end early next year.”For information about the assistance available to households and businesses, along with tips to keep your finances in good health amid the current crisis, browse our guide to coronavirus and your finances.

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

Despite COVID-19 slowing down activity in many industries, the business loans market has remained busy throughout 2020. For over 250 days now, Australian banks have approved more than 500 loan applications from small-to-medium enterprises (SMEs) a day. This is according to the latest data from the Australian Banking Association (ABA), which shows a whopping total of $41 billion has been lent out to SMEs and sole traders between 1 February and 7 October. ABA’s chief executive, Anna Bligh said that with the loan approval rate sitting at 70%, it’s clear Australian banks haven’t left struggling small businesses behind. “Australian banks are continuing to provide a lifeline to small and medium businesses across the country. The rate of lending has held up strongly despite the pandemic,” she said. “The banks’ commitment to small business has been supported by a number of Government and regulatory measures, including the RBA’s Term Funding Facility, changes to business lending rules, the instant asset write-off, and the SME loan guarantee.”These figures come after the federal government announced plans last month to scrap ‘responsible lending’ laws in order to further reduce red tape around accessing credit. The proposed shift from the current practice of “lender beware” to a “borrower responsibility” principle would essentially allow lenders to rely on the income and expense information provided by borrowers, helping to speed up the loan approval process. Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said she supported the proposal as a step towards loosening unrealistic serviceability rules for small businesses. “We are aware of small businesses that have been asked for all sorts of documentation by the banks - even for loans that have been 50 percent guaranteed by the Federal Government - including director guarantees, which really means the family home. It’s no wonder small businesses owners are reluctant to borrow,” she said. “Importantly the banks will still be accountable to ASIC [Australian Securities and Information Commission] and the Government has pledged greater protections for vulnerable borrowers.”

The reason why your age and gender affect your car insurance premium is statistics, plain and simple.

Interest rates haven’t been all that rosey for savers in 2020. Whether you store your cash in a term deposit or savings account, economic uncertainty has led to consistent cuts across the board. The traditional approach to this kind of instability would be to bet on a term deposit. This option provides a fixed rate for as long as you set the term, helping you avoid rate reductions (and increases, on the negative flipside).The catch is you’ve got to get while the gettin's good. Right now, what you’ll get for an average one-year term deposit is 0.79% interest rate, according to Mozo’s database. Compared to 2014’s one-year term average of 3.41%, that interest rate doesn’t feel quite so good.Unfortunately, things really don’t pick up if you’re willing to stick it out for a longer term. As you can see in the graph below, savers were once upon a time incentivised with a higher rate to keep their cash locked up for longer periods.

Overall electricity consumption fell by 2% in the second quarter of 2020, compared to the same period last year, according to the latest Inquiry into the National Electricity Market report by the Australian Competition and Consumer Commission (ACCC).And unsurprisingly, residential electricity consumption has climbed significantly thanks to the COVID-19 lockdown. Melbourne in particular experienced one of the biggest increases in consumption of between 10% and 30%, compared to last year. ACCC chair Rod Sims believes this increase is set to put a strain on household budgets and cause many households to fall behind with their energy bills. “The pandemic is exacerbating energy affordability concerns. At a time when many consumers are experiencing reduced incomes, increased electricity consumption could lead to rising household debt and financial strain,” he said. “Available data suggests more customers are a month behind in bill payments and energy affordability may become an even bigger concern in coming months.”However, as wholesale electricity prices continue to remain at their lowest in years, Sims says  households should soon start to see this reflected in their annual bill. “The drop in wholesale prices is excellent news for consumers, especially at a time of rising household bills. While wholesale price falls have been partially offset by higher network costs (except in South Australia where network costs fell), retailers are legally required to pass on any sustained savings to consumers,” he said.

If you’re struggling to keep your own bills and day-to-day expenses covered, it might be difficult to include charitable giving in your budget. And as Christmas 2020 approaches after an unprecedented year of global financial instability, you may be tightening your money belt by another notch.A September report by market research company Toluna found a third of Australians plan to cut down spending on gifts this year, with another 35% expecting to reduce their Christmas event budget.Many charities will also be feeling the economic effects of COVID-19 now and into the new year. With social restrictions limiting traditional fundraisers, donations are expected to fall more than 7% by the end of the year, with a further 12% drop forecasted for 2021, according to research from wealth management firm JBWere. So, if you’re running low on Christmas cash but still want to give back this holiday season, you may have to think outside the box. Get cracking with these five ways to contribute to your community without blowing your Xmas budget.

Non-bank lender Resimac has slashed 30 basis points off its variable rate home loan this week, bringing its offer down to one of the lowest in the Mozo database. The reduction means that for a limited time, the Resimac Prime Flex sits at an ultra competitive rate of 2.29% (2.66% comparison rate*) for owner occupiers with loan-to-value ratios (LVR) of up to 70%. Meanwhile for owner occupiers with LVRs between 70%-80%, the rate also has fallen by 30 basis points to 2.39% (2.76% comparison rate*). Both new rates are available on loan amounts ranging from $150,000 up to $2 million, and come with a 100% offset account, as well as other flexible features including free extra repayments, a free redraw facility and a split account. Just bear in mind you'll need to budget for a $330 upfront valuation fee and a $299 yearly service fee.Resimac joins a series of other lenders who have also cut their variable rates recently as competition for borrowers remains heated in the home loan market. Among home loans with an offset account, the Resimac Prime Flex now has the third lowest rate in our database, sharing that spot with four other lenders (FreedomLend, Homestar, Reduce Home Loans, and Yard). For further comparison, Resimac’s new 80% LVR rate is a massive 95 basis points below the current average variable rate of 3.34%. In other words, if you’re borrowing $400,000 over 25 years with an 80% LVR, Resimac’s rate could save you as much as $58,783 in total interest paid over the life of the loan, compared to the average variable rate. Scroll down to compare Resimac’s new offer against other home loans with an offset account. Or if you’re interested in weighing up even more deals from 80 different lenders, be sure to visit our home loans comparison table.

Ever heard of a neo business credit card? Say hello to Melbourne-based fintech Archa.  This week, Archa announced that it has become a principal issuing member of Mastercard, meaning it can access the card providers leading global payment network. The partnership will allow the fintech to launch its new neo business credit card along with an app with innovative tools to help businesses manage their expenses.  “This is a really important strategic milestone for Archa. We’re thrilled to have the support of Mastercard as a critical foundation to our business model,” Archa’s chief executive, Oliver Kidd said. “We look forward to working closely with Mastercard over the coming years to support small businesses throughout the region.”

The momentum for a ban on using credit cards for gambling has been building for quite some time. In July last year, major bank Macquarie announced that customers would no longer be able to use their credit card for gambling. Shortly afterwards the Australian Banking Association (ABA) released a consultation paper asking for community views on the issue and now Bank Australia has followed in Macquarie’s footsteps.

Are you paying the lazy tax? Whether it’s your electricity bill, phone plan or car insurance, it can be so easy to stick with the same provider and plan year after year - especially if you think you’re getting a good deal.

New research shows Christmas this year will be unlike any other, with popular silly season activities like gifts shopping and international travel set to take a backseat.The survey conducted by Pureprofile with 577 Australians found 10% won’t be buying any presents at all in 2020, which is almost double the number last year (6%). Fewer people are also planning to spend over $500 on gifts - 20% compared to 30% in 2019. On the receiving side of things, there’s a similar story of more respondents wanting no gifts (18%, up from 10% in 2019) and far fewer wanting luxury items such as clothing and shoes (down 12%), jewellery (down 11%) and technology (down 8%). Instead, it’s practical gifts like money and gift cards that have topped many people’s wish lists, with 48% and 40% of respondents respectively saying they would prefer to receive those as presents.Pureprofile’s chief executive, Martin Filz says the results aren’t surprising, given how tight finances have been for many families. “We’re a population struggling with the new normal caused by COVID-19 this Christmas. We’re watching our wallets and only spending money that we are absolutely certain we have,” he said. A large number of Australians are also keen to support their local businesses this Christmas, with 39% saying they plan to purchase their gifts from Aussie-based retailers.But that’s not the only thing that Australians are intending to do locally. The report also reveals with international travel still off the table, 82% of Australians are considering intrastate trips or ‘staycations’ instead. Had it not been for COVID-19, this number would have sat at a much lower 24%.

Buy Now, Pay Later (BNPL) service Zip has announced a brand new product feature called ‘Tap & Zip’, which will allow Aussies to bring BNPL almost everywhere, just in time for Christmas shopping. Specifically, Zip customers will be able to use the BNPL service in store wherever Visa is accepted. The product feature is expected to bridge a gap within the retail industry, with only 13% of stores currently accepting BNPL as a payment choice, according to Zip. “BNPL has seen phenomenal growth over the last few years, as customers switched from traditional forms of credit for flexible, digital alternatives. However, until now that growth has been restricted by a clunky instore checkout and limited acceptance,” said Zip co-founder and chief executive officer, Larry Diamond. “Everywhere Australians can pay with a Visa contactless card, they’ll now also be able to Tap & Zip, interest-free.”

Need to send money overseas to loved ones? Or needing to set up regular international payments for your small business? You may already know that the big four banks all offer International Money Transfer services, but it’s not always as simple as walking into a branch.

Many Australians are struggling to afford their car insurance right now, according to Mozo’s 2020 car insurance report.Survey data informing the report shows 32% of motorists consider their car insurance a financial strain, with one in five drivers thinking about cancelling their policy.Another 25% of respondents said they had already cut their cover.

We’ve all heard of the many negative impacts COVID-19 has had on the lives and financial situations of people all over the world. But one silver lining is that more people have begun paying closer attention to their finances and spending.

Buy now pay later giant Afterpay and major bank Westpac have announced they'll be joining forces. As part of the Westpac Group’s new digital bank-as-a-service platform, Afterpay will introduce savings accounts and cash flow tools to its customers. Back in November of last year, Westpac said it would invest in the digital banking platform as part of its full year results and this appears to have now come to fruition. Chief executive Peter King said fintech innovation is reshaping the way Aussies bank and how the traditional bank needs to keep up. “Our new digital banking platform is part of our long-term strategy to support this trend and better respond to changing customer needs,” he said. “The platform allows us to combine our banking experience with the innovation of our partners to support new customer experiences. We look forward to working with Afterpay to deliver new products and services.”

While some have used self-isolation as an excuse to bake copious amounts of banana bread and brush up on their painting skills, millennials have been busy working on their TikTok careers. With 112 million downloads in February alone, TikTok is now the #1 most downloaded app of 2020.

At the end of September this year, a community owned renewable energy hub was unveiled in Narrabri, New South Wales. Partnered with Byron Bay-based energy provider Enova, the new not-for-profit organisation, ‘Geni.Energy’ aims to give support and encourage locals to get involved in a community-owned renewable energy project.

Are you a fast-paced city explorer or a breezy country cruiser? This could have a big impact on the kind of home you choose and plunge you into the age-old debate of if apartments or houses are a better buy.But before you can crack on with the financial rebuttals and then settle on a top-value home loan, you’ll want to figure out which dwelling suits you best. So, we’ve laid out a few key areas to address before you dive into analysing the property spectrum.

Online lender Tic:Toc has reduced its Variable Home Loan rate by 20 basis points this morning, placing the offer among the lowest variable home loan rates currently on the market.

After filling its first 10,000 ‘Founder’ spots, fintech Hay is not resting on its laurels. While Aussies have been getting on board with the new Sydney-based start-up, the Hay team have been busily preparing for the launch of a ‘special card’.

A shocking 40% of renters across Australia are struggling to pay for essentials including bills, food, clothing and transport, new research from the Australian Housing and Urban Research Institute has found.

Although the official cash rate has stayed the same since March, competition in the refinance home loans market hasn’t slowed down at all, with lenders continuing to slash fixed and variable rates to new lows. In the past month alone, from 1 September to 15 October, 41 lenders in the Mozo database have reduced their home loan rates. Right now the average variable home loan rate in the Mozo database sits at 3.34% - a whopping 55 basis points below last October’s average.^Average short-term fixed rates have slid even further to 2.48% for two year terms, dropping 84 basis points since this time last year.^“Lenders are trying to attract customers at a time when the pool of quality borrowers has been drastically reduced due to COVID-19 and job losses,” Mozo’s property expert, Steve Jovcevski said.“With vacancy rates rising and rent prices falling, many investors have also dropped out of the market, so lenders are now targeting owner occupiers, especially first home buyers and refinancers, with their rate cuts.”But the banks aren’t just competing on the interest rates front. Cashbacks as high as $4,000 are being offered to refinancers. Some lenders including Westpac and AMP are also trying to stay ahead by lowering their serviceability floor rates to make it easier for owner occupiers to borrow larger amounts or to refinance. “At the moment, a lot of homeowners are ‘mortgage prisoners’ because the serviceability criteria has become so much stricter since COVID-19 began, compared to, say, a couple of years ago. But now with serviceability rates lowered, more people will be able to refinance instead of being stuck on their current loan,” Jovcevski said.

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

No one likes credit card debt. But it’s not always easy to shake it … especially without the right financial tools to help you.

The only thing better than earning rewards is earning them for the things you already do - like your everyday spending.

When it comes to finding the right credit card, there are lots of different factors to consider.

Whether you love a low rate, minimal fees, rewards or need to clear your debt with a balance transfer, we’ve got you covered for this year’s best credit cards.

There’s a common misconception that GreenPower is more expensive than standard electricity, stopping many Aussies from going green with their power. But according to recent Mozo analysis, the cheapest green energy plans were actually better value than the average electricity plan. In fact, depending on your state and distribution zone, households can save between $32 to more than $200 a year. Just in case you weren’t aware, a green energy plan refers to where a percentage of your electricity (between 10% and 100%) is generated from a renewable source. Your retailer will then purchase your nominated amount on your behalf and feed it back into the grid. “In most cases, the data reveals that you can help save the planet and save money at the same time,” said Mozo Banking Expert, Peter Marshall. The data showed that households in Adelaide have the potential to save $257 a year just by switching to the cheapest green electricity plan in the Mozo database - the Powershop Shopper Market Offer Plan. “For our 2020 Mozo Experts Choice Energy Awards, Powershop came out on top as the green retailer with the best residential prices in four states (NSW, VIC, QLD, SA), while Energy Locals had the cheapest green plan for the ACT,” said Marshall. Sydneysiders within the Ausgrid region have the potential to save $166 a year, followed by Canberra ($106), Brisbane ($105) and Inner Melbourne ($43).

We talk a lot about getting a ‘top rate’ or ‘good deal’ here at Mozo. But with uncertainty – financial and otherwise – plaguing most of 2020, the line between ‘good’ and ‘less-than-good’ in personal finance is becoming a little blurry.This is particularly evident in savings account interest rates. At the end of May, we were disheartened to see leading accounts in Mozo’s database dropping ongoing savings rates below 2.00%. At the time, the average ongoing rate sat at 0.74%.Succeeding months had similar results, with the average rate tracked by Mozo slowly zig-zagging downwards.Now, as we sneak across the halfway point of October, it’s clear that the more things change, the more they stay the same. The average ongoing rate in our database is 0.58%, with many of the higher rates sitting closer to the 1.50% mark.So, to help keep everyone’s spirits up and continue striving to find that lauded ‘good deal’, we’ve mapped out the lay of the savings account land.

Just when you thought a hat trick was impressive, American Express has snapped up the top prize again this year in the 2020 Mozo Experts Choice Awards for Credit Cards. After comparing a range of different credit card providers, Mozo experts found that for the fourth consecutive year American Express proved to be the best of the best. The provider won a massive eight awards across seven categories, and retained its crown of Credit Card Provider of the Year. “Yet again, American Express have performed exceptionally well in the Mozo Experts Choice Awards for Credit Cards,” said Mozo Expert Judge Peter Marshall. “As a credit card specialist, Amex continues to dominate this space, offering competitive options to suit a range of different consumers. “A huge congratulations on the fourth consecutive claim to the prestigious Credit Card Provider of the Year award. What a win!” This year, our expert judges considered a massive 215 personal and 45 business credit cards, issued by 72 different financial institutions. To win Provider of the Year, a provider needs to have won awards across a range of different products as well as won more awards than its competitors. (Check out our methodology report for more info). In the case of Amex, it did just that. Talking home almost double the amount of awards than the next most successful provider and spanning across a range of categories including: low rate, low fee, balance transfer, rewards and business cards. Want to meet some of these award-winning American Express options? Check them out below!

While credit cards can help with immediate expenses, they require careful consideration in the bigger picture. This is especially so in uncertain times, like those presented to us in 2020. Recent Mozo research shows that consumers are not unanimous about credit cards right now either. For example, 14% of people we surveyed mid-year said they were getting a new credit card, 12% said they were upping their existing credit limit, while 11% said they were cancelling all lines of credit. A further 19% said they are using buy now pay later services to get by instead.

Aussies love to spend, and a lot of us are using credit to purchase everyday things as well as big ticket items. So, it’s important to find a credit card that suits your needs and budget. The old stigma that credit cards were something that would get you in debt has long changed, and the “smart” use of plastic has helped many Australians, consolidate debt, score rewards and even manage cash flow for their business.For the 2020 Mozo Experts Choice Awards, Mozo judges compared 215 personal credit cards and 45 business credit cards, from over 70 financial providers, proving just how saturated and complex the market can be when trying to choose one that meets your needs.“Credit cards come in all shapes and sizes, and whilst they are a convenient way to pay, many card holders are still getting stung with high rates, annual fees and unnecessary usage charges,” said Mozo Expert and awards judge, Peter Marshall.“Our awards aim to help consumers find the credit card that’s right for them, whether it’s a low rate, great rewards or an appropriate business card for their needs.”With over 16 million credit cards in the Australian market according to the Reserve Bank of Australia, finding the right one has never been more important.Credit Card Provider of the YearFor the fourth year in a row and proving that consistency is key, American Express has taken the crown yet again as Credit Card Provider of the Year!The coveted title comes together with eight individual awards in all three categories assessed; personal, rewards and business cards. So it’s no small feat for American Express to add this award to their outstanding reputation in the industry.

It’s never been easier for regular Australians to enter the stock market and diversify their portfolios by trading everything from individual shares, securities and ETFs all on a laptop or smartphone.

From smaller crowds to limited hugs, there's no doubt Christmas will look anything but traditional this year. And according to new research from market researcher, IBISWorld, Aussies aren’t looking to spend big either this festive season. IBISWorld found that Christmas retail spending is expected to decline across certain areas, such as electronic goods (-2.7%), pharmaceutical and cosmetic goods (-1.5) and department stores (-1%).“Although many households are likely to receive a cash injection from the recent Federal Budget, there is a high likelihood that these funds will be saved rather than spent, providing little help to the ailing retail sector”, said IBISWorld senior industry analyst, Yin Yeoh.“Consumer electronics retailing is expected to be 2.7% lower this December, relative to last Christmas. Department store turnover is expected to be 1.0% lower, at $2.8 billion.” But while we might not be splurging on flashy gifts for our friends and family, grocery and liquor spending is expected to increase by 2.8% and 3.6%, respectively. “Families are expected to go all-out on their Christmas feasts this year, with many Australians celebrating their ability to reunite with family after states reopen borders and ease social distancing regulations,” said Yeoh.Unsurprisingly, online spending will also grow by 6.4% in the 2020/21 financial year, as more households make the effort to shop around to get a better deal and reap the benefits of home delivery. Buy Now, Pay Later (BNPL) will also be a popular payment method among households, as more Aussies are expected to ditch their plastic to avoid holiday debt. “Mozo research shows that Aussies are taking steps to eradicate their debt during the pandemic, so it’s not surprising to see that Buy Now, Pay Later usage will surge during the holiday season,” said Mozo Director, Kirsty Lamont. This research correlates with recent research by BNPL platform, OpenPay, which found that almost a quarter of Aussies in Sydney and Melbourne are using BNPL to manage their spending during the pandemic.

Whether it’s because of the opportunities presented by volatile markets or the relatively low rates on banking products such as savings accounts and term deposits, Australians have flocked to share trading during the COVID-19 pandemic.

The Australian dollar (AUD) has been anything but stable over the past few weeks, fluctuating constantly between 70.5 and 72 US cents. While this may not seem like much variation, for a larger international money transfer of AU$100,000, it could mean saving or losing as much as US$1,500.And that volatility is only set to intensify throughout October. According to foreign exchange specialist OFX’s head of treasury, Sebastian Schinkel, the Aussie dollar could be knocked out of its current trading range as major global events like the deadline for Brexit and the US election loom on the horizon.“There are a lot of things brewing in the background that may help the Aussie move away from that range. But it’s hard to tell which way we’re going because there are so many factors at play,” he said. “Firstly a lot of attention is being put on the US election, and depending on what happens there, we should definitely see a move in the Aussie. We also have the same thing happening with Brexit in the next couple of weeks or months, and then whatever happens with COVID-19 and US-China trade tensions [will also have an impact on the Aussie].”Plus, uncertainty lingers around Australia’s economic position going forward - the AUD could go up or down in value, depending on whether or not fiscal support announced in the recent Budget will help the economy recover. “I think the Federal Budget will help cover the reduction in JobKeeper and JobSeeker [payments], but at the end of the day, the main challenge for the government and for the country is confidence. There’s a lot of offer for credit but what we are lacking is people actually demanding that credit because they’re afraid of making investments,” Schinkel said. A negative risk sentiment would typically cause investors to flee toward ‘safe haven’ currencies like the US dollar (USD), Japanese Yen (JYP) and Swiss Franc (CHF), which would then weaken the Aussie dollar. That’s precisely why the AUD crashed to 55 US cents back in March after COVID-19 was declared a pandemic. Meanwhile, a positive risk sentiment would likely do the opposite, boosting the value of ‘risky’ currencies like the Aussie dollar and Canadian dollar (CAD).

When it comes to car insurance, Victorians pay on average $229 more than the rest of Australia. That’s according to Mozo’s 2020 Car Insurance Report. The same report also revealed that 74% of drivers in the garden state are using their wheels less than this time last year.

Most drivers will take out car insurance to protect their vehicle and finances in the event of an accident or emergency.So, while you want to make sure you’re getting a good value deal on your premium, you should also know what kind of payout you’ll get if you need to make a claim.The Australian Prudential Regulation Authority’s (APRA) most recent data on car insurance claims shows the average payout in 2019 was $3,362. This excludes claims made under CTP insurance, but covers all voluntary domestic motor vehicle insurance claims, from third party car insurance claims to cover under comprehensive policies.If APRA only assessed comprehensive policies, it’s likely this number would be much higher. This is because third party cover only insures drivers for a limited amount of damage they cause to other people’s cars and property (often only up to $5,000 as standard) and not to their own.

For a lot of us, our credit cards play an important part in our everyday spending. But like any other form of credit there are a few things to keep an eye on, including fees and interest. So whether you’ve decided to pick up your first credit card or are in need of a quick refresher, here are five tips to ensure managing your plastic is fuss-free.

The housing market continues to withstand the shock of the coronavirus pandemic, with new data from the Australian Bureau of Statistics (ABS) showing the number and value of home loan commitments rising to record highs in August.According to the latest Lending Indicators report, the total value of home loan commitments rose by 12.6% in August to $21.3 billion, marking the highest monthly increase in the series’ 18 year history.Owner occupiers made up the lion’s share of approvals, with first home buyers accounting for 34.2% of commitments among this group. The ABS data reveals that approvals for first home buyers surged by 18.4% in value and 17.7% in number over August.To its credit, the government’s HomeBuilder scheme seems to be driving demand for new dwellings, with owner occupier loans for construction purposes increasing by 22.9% over the month and by 34% over the year.While the ABS notes that August commitments reflect demand from June and July, before a second wave of infections forced Victoria into lockdown, the volume of approvals demonstrates the housing market’s resilience to COVID-19 so far.RELATED: Why your home loan choice is as important as your new addressMortgage Choice CEO Susan Mitchell said that a number of policy measures are helping to prop up the housing market, with the rise in home loan commitments expected to continue in the near term.“The recent announcement of changes to responsible lending will increase access to credit for Australians seeking a home loan and go a long way to reducing red-tape for many home loan applicants,” she said.“Monetary policy easing from the Reserve Bank continues to support historic home loan interest rates and the Federal and State Government grants and schemes will play an important role in supporting buyer demand.”According to the ABS, the total value of investor loans increased by 9.3% to just over $5 billion over August, however this remains 4.6% lower than last year. Rising vacancy rates and slowly dipping rents have led many investors to retreat from the market, opening up opportunities for first home buyers who usually compete with investors for housing stock on the lower end.For more property and lending insights, visit our home loan statistics page. And if you’re on the market for a home loan, browse our home loans comparison page, where you’ll be able to filter your search by rate and type.

The downward spiral in savings account rates continues to show no signs of letting up with customers of neobanks 86 400 and Xinja set to be the latest rate cut recipients.

With phase two of the government’s SME Loan Guarantee Scheme in full swing and phase three just released, businesses across Australia now have plenty of opportunity to access cheaper funding to boost their cashflow. Under the first phase, the government guaranteed half of all unsecured three-year business loans of up to $250,000. But under phase two which is set to run until 30 June 2021, the loan terms have been extended to five years, and loan amounts increased to $1 million, with 39 lenders including the Commonwealth Bank and ANZ participating in the scheme. Phase three, known as the SME Recovery Loan Scheme, has also begun as of 1 April 2021, with the caps for loan amounts and loan terms once again raised to $5 million and 10 years. Treasurer Josh Frydenberg said more than 35,000 business loans - over $3 billion of the planned $44 billion - have so far been provided to small to medium-sized enterprises (SMEs) under the scheme.And with over 350,000 businesses now left without JobKeeper payments to cover staff costs, even more may jump on board and apply for a government-backed loan.

Macquarie Bank has become the latest lender to further set its sights on refinancers after making a number of targeted home loan rate cuts yesterday morning.

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

If you like to keep up with the latest in personal finance, then you might know that interest-free credit cards are among some of the latest offers to hit the market. As the name suggests, these are credit cards that feature no interest on an ongoing basis.   In early September, NAB launched its Straight Up credit card and was shortly followed by CommBank’s Neo credit card, both resembling a Buy Now, Pay Later (BNPL) service. But should you be picking one up in the near future or are you better off sticking with a low rate credit card? To help you make a decision, we’ll look at the pros and cons, plus how they stack up to low rate and 0% introductory rates credit cards.

Love it or hate it, summer is right around the corner and for many households, that means daily ice blocks, weekly trips to the local pools and of course, switching on the air conditioner. But did you know that 40% of your annual energy bill comes from heating and cooling appliances? According to recent Mozo analysis, that translates to $674 a year! “This year we’ve spent more time indoors than ever before so it’s only natural our energy bills are reflecting a higher consumption rate. As we head into the warmer months it’s important to be aware of the running costs of your household,” said Mozo Director, Kirsty Lamont. “While cooling and heating accounts for the lion’s share of most energy bills, our devices and appliances also make a considerable debt, costing an average of $421.25 a year.”

Among the number of notable announcements in the 2020 Federal Budget was the proposed fast-tracking of changes to taxation limits.While the merits of this decision for different socioeconomic groups have already come under scrutiny, it’s important to understand exactly what the changes could mean for you as a taxpayer.So, here’s a quick rundown of the basics when it comes to tax changes in the 2020/2021 financial year.

Like other banks and financial institutions, online lenders must adhere to certain laws and regulations laid out by regulatory bodies. In particular, they have to take steps to ensure it’s not beyond a borrower’s means to pay off a loan, as well as provide borrowers with relevant information to make informed decisions along the way.Online lenders that are also authorised deposit-taking institutions (ADIs) are regulated by the Australian Prudential Regulation Authority (APRA). Some examples are 86 400, ING, and UBank. Many online lenders don’t have an ADI license however, as they’re not in the business of providing savings accounts or term deposits. These include Athena Home Loans, Homestar, and loans.com.au.While non-bank lenders aren’t regulated by APRA, they’re still subject to strict credit legislation, and can be ruled on by the Australian Securities & Investments Commission (ASIC) if they’re found engaging in misleading or deceptive conduct.

For small businesses across Australia this may have been one of the most important federal budgets yet. On top of extended coronavirus stimulus packages like JobKeeper, the 2020-21 Budget was a ray of hope that more financial relief would be rolled out to help companies and the economy recover from the current recession. So what exactly is the federal government pledging to deliver to support small to medium-sized enterprises (SMEs) through this period? From tax offsets to a new wage subsidy program, there’s lots in the pipeline to watch for. In fact, businesses are set to receive $31.6 billion in tax breaks - almost twice as much as households. But unlike households, the business tax incentives are only temporary, with an aim of encouraging more investment in jobs and ‘big ticket’ items (like new equipment and machinery) over the next few years. Read on for a snapshot of budget support measures for your small business:

While 1 in 4 Australian drivers think their car insurance is too expensive, a third aren’t looking for better value policies, according to Mozo’s 2020 Car Insurance Report.Data from the report shows this is having a significant impact on motorists’ budgets. Around 32% of survey respondents cited car insurance as a major financial strain, and another 8% said they could no longer afford their policy.So, why aren’t Aussies shopping around for the cheapest comprehensive car insurance quote? The report highlights friend and family recommendations as a key choice-driver, swaying the views of a third of respondents. Recognising an insurance brand and staying loyal to the same provider was another major factor, influencing a quarter of drivers.Mozo’s data team calculated that drivers could be overpaying on their annual premium by approximately $902 by not comparing comprehensive quotes and finding the best value offer.

If you’ve been losing sleep over your finances, you’re not alone. As many as 2.29 million Australians are currently facing financial stress - over eight times more people than pre-COVID times, according to wellbeing program Financial Mindfulness. So what exactly has been troubling Australians? New research from Financial Planning Association of Australia (FPA) shows that worries including job insecurity and loss of super and savings sit top of mind.FPA’s survey with over 2,000 Australians reveals that due to unemployment or paycheck cuts from COVID-19, 11% now struggle to make ends meet while 31% are dipping into savings just to get by. Many respondents also said they carry money regrets, with 70% wishing they did things differently, such as putting aside more cash for a rainy day, avoiding impulse purchases, and prioritising debt repayments. But it’s not too late to take action now. This week is Financial Planning Week, which means it’s an opportunity for you to take a step back and revise your financial plans. “The COVID-19 pandemic has demonstrated the need to prepare for the unexpected,” said FPA’s chief executive, Dante De Gori. “Understanding your current financial situation and short and long-term financial goals - in other words having a financial plan - means you can better manage your finances, allowing you to live your today while making sure your tomorrow is planned.”

On the 27th of June, my boyfriend got down on one knee and asked me to marry him. And like any young woman who grew up watching ‘Say Yes to the Dress’, my mind was already racing with wedding ideas. But in between the overwhelming messages from friends and family was news reports about the COVID-19 pandemic spreading, with cases hitting record numbers. Although I have no plans of getting married this year, I knew I had to move fast to secure a venue, as COVID-19 restrictions were forcing couples to push their weddings until next year. And even though I didn’t like the idea of rushing, I can understand why a couple would choose to delay what’s come to be known as ‘the happiest day of your life’ - coming from a big family myself.According to wedding planning website Easy Weddings, around 60% of couples have already cancelled or postponed their 2020 wedding due to COVID-19.Other couples, however, are choosing to embrace this unusual time and are committed to walking down the aisle. While motivations for doing this can vary between couples, one reason could be the unexpected financial benefit. This report will take a deep dive into what the wedding industry looks like in 2020 and why couples are using COVID-19 as their opportunity to host a refined version of their dream day.

If the last month of savings interest rate cuts has proved anything, it’s that even rate-leaders aren’t immune to severe reductions. As of today, the Up Saver Account has one of the three top maximum savings rates in Mozo’s database at 1.60%. From 1 November, it’ll drop 50 basis points (bp) to a less-than-inspiring 1.10%.However, it’s still sitting ahead of the average ongoing savings rate, which has plummeted to 0.59%.* While it is the largest reduction we’ve recorded in recent months, it isn’t a total outlier. In September Mozo’s data team saw other considerable cuts like Bank of Sydney slashing 45bp from its BOS Saver base rate and Beyond Bank's 35bp cut to its Purple Bonus Saver.Up customers will still need to make five successful card purchases each month through the linked Everyday Account to access the new rate, but they won’t receive the former 0.10% base rate if they fail to do so.One number which has increased is the account limit for earning interest. From November, it’ll jump from $50,000 to a tidy $1 million. RELATED: RBA keeps interest rates at 0.25% in October.

It can be a bit of a drag when your insurance renewal rolls around for another year and yet again you haven’t needed to make a claim. But that’s the thing about having insurance: you hope for the best but are prepared for the worst. Future you will be grateful you played it safe.Mozo’s aim in the insurance game is to help ease the financial strain of maintaining your cover by helping you find a top value-for-money policy. We also try to help simplify the process of taking out a policy which suits your needs.In pursuit of these goals, Mozo analyses what’s on offer in the insurance world each year in the Mozo Experts Choice Awards. In 2020, the expert judges were on the hunt for the best value and highest quality home and contents insurance.In both regards, Westpac’s Home & Contents Insurance was a stand-out performer. Its Premier Care tier – Westpac’s highest grade of home and contents insurance – was awarded in the Exceptional Value and Exceptional Quality award categories, with the standard Essential Care option also taking home a value award.When considering value, Mozo’s expert judges assessed the policies in terms of the level of cover offered at a more affordable price compared to others in the market. When they assessed quality, the judges were on the lookout for even more generous or extensive policy features.Read on to learn more about Westpac’s winning cover.

Despite speculation that an October rate cut was in the cards, the Reserve Bank has left official interest rates on hold in its meeting this afternoon. The cash rate remains at the historic low of 0.25%.“A recovery is now under way in most of Australia, although the second-wave outbreak in Victoria has resulted in a further contraction in output there,” said RBA governor Philip Lowe in his post-meeting statement. “Labour market conditions have improved somewhat over the past few months and the unemployment rate is likely to peak at a lower rate than earlier expected. “Even so, unemployment and underemployment are likely to remain high for an extended period. Wage and inflation pressures remain very subdued.”Lowe once again ruled out an increase to the cash rate until the outlook for inflation and employment is in line with the Board’s targets. According to past statements, this isn’t likely to be met for another three years.While the Board has shown a clear bias against negative interest rates, taking the cash rate below its current setting but above zero has been floated as one way to put the economy on a quicker path to recovery.Another option is a more traditional quantitative easing program, which would involve maintaining the current three-year yield target while also conducting purchases further out along the curve.As for the Board’s term funding facility, which received a boost following last month’s policy meeting, Lowe said it continues to support the flow of credit to households and businesses. So far, $81 billion in low-cost funding has been drawn from the facility.

The Australian Prudential Regulation Authority (APRA) has announced it will recommence reforms of individual disability income insurance (IDII).The intervention into IDII, otherwise known as income protection insurance, began in December 2019 but was put on hold in response to the global pandemic.

Over the long weekend Western Australia Premier Mark McGowan announced that every WA household will be receiving a $600 electricity bill credit sometime this week. According to the Premier, the credit is expected to cover around four months worth of electricity expenses and is being provided to encourage WA households to increase their spending in preparation for Christmas. “This will give families the confidence to spend over Christmas and to make sure they support local businesses,” McGowan told reporters on Sunday. “We’re climbing out of COVID very rapidly. Our economy is the strongest in Australia. But we still want to give consumers confidence to spend over the coming months and this allows us to do that.”

The spring property season is already underway and this year there seems to be a renewed sense of optimism among buyers.

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

How much do you pay for electricity every year? $1,200? $1,500? More?

Over two million Australian homes are now fitted out with rooftop solar, allowing households to reap the benefits of lower energy bills. But not all energy plans are alike, so how can solar households ensure that they’re getting the cheapest electricity possible?

Between random expenses you didn’t see coming and making sure your employees are paid on time, running a small business is no easy task. And with Covid-19 forcing many small business owners to work under new guidelines, staying on top of the latest energy deals might not be a priority. That’s why our expert judges do the heavy lifting for you in our annual Mozo Experts Choice Energy Awards. These awards are designed to highlight the top energy deals in the market and give Aussies an insight into the retailers they should keep on their radar. “Comparing energy plans is often regarded as tricky business, because unlike a home loan or credit card, rates and fees aren’t always as visible,” said Mozo Expert Judge, Peter Marshall. “Our Mozo Experts Choice Energy Awards take the hassle out of finding the best energy plan in the market, ensuring small businesses owners are able to sign up for a top deal, no matter what they’re after.” In order to uncover this year’s winners, our expert judges analysed 415 energy plans from 37 small business energy retailers before awarding the top performing retailers in each category. One winner worth mentioning is newcomer Powerclub, which took home a whopping seven awards, plus the prestigious title of 2020 Mozo Experts Choice Small Business Electricity Retailer of the Year. “While Powerclub may have only launched last year, they have certainly hit the ground running. They’re a retailer who do things differently, from their Powerbank cash buffer to transparent, wholesale prices,” said Marshall. “Powerclub are no stranger to the Mozo Experts Choice Awards either, as they took home a commendable 15 awards in 2019.”Other notable winners included Powershop and Energy Locals, which each took home an impressive four 2020 Mozo Experts Choice Energy Awards and Blue NRG, which collected five awards. “Powershop in particular performed outstandingly in our Queensland category, with its Shopper Market Offer plan taking out three awards across the Electricity, Solar-friendly Electricity and Green Electricity categories,” said Marshall. Want to check out the other retailers who made it onto our winners list this year? Head on over to our full winner list page!

As with most things insurance-related, the answer as to whether rentals are covered under car insurance is not simple. Yes comprehensive car insurance does usually offer some cover for hire car costs. However, only in certain circumstances.

Young Australians are turning to their families to help weather the COVID-19 recession, with Mozo research finding that 30% of Australian parents have provided financial assistance to their adult children since the crisis began.“COVID-19 has been a financially devastating time for many Australians, with younger generations particularly hard hit as they’re more likely to be in customer-facing or service related jobs, or just starting out in their career,” said Kirsty Lamont, Mozo Director.“It’s only natural that parents want to step in to help struggling adult children, and to date, parents have contributed a whopping $26.8 million to their offspring since the virus hit Australian shores.”While cooking meals and buying groceries have been the most popular ways for parents to lend a hand, one in ten parents admitted to paying their children’s bills, with the average weekly spend coming in at $130.

As refinancers gear up to escape rising interest rates, there’s one tool in their arsenal they shouldn’t forget about: home equity.

They say too many cooks in the kitchen can spoil the broth, but that doesn’t seem to be the case for the energy market. In fact, it’s preferred.

As predicted, cuts to term deposit interest rates started to slow down in September. Mozo recorded more cuts to savings rates than to term deposits last month. But with talk of a possible rate cut at the next Reserve Bank monthly meeting, there may yet be more reductions to come. So if you’re looking to lock away some cash before rates plummet any further, now is the time to get switching.

If you’ve been keeping an eye on your savings account interest rate over the last six months, it’ll come as no surprise that rate cuts continued in September.Mozo’s data team saw 65 interest rate reductions last month, which brought the average ongoing rate down 3 basis points (bp) from last month to 0.61%.*

Spring has sprung which means the property market has started to heat up, but so too has the home loan market, with lenders making a series of cuts in recent weeks and more likely to come in the month ahead.

October has officially arrived, but will you make it out alive? For very few make it through the creepy place in which fear lies.

As a growing number of Australians look for ways to reduce their carbon footprint, the good news is that going green doesn’t have to cost you an arm and a leg. In fact, new research drawn from our 2020 Mozo Experts Choice Energy Awards shows that the cheapest green electricity plan in your state could actually be better value than the average electricity plan. Depending on your distribution zone, a household with average energy usage* could potentially save between $32 (in Northwest Melbourne) to $257 (in Adelaide) per year on the cheapest green plan, as opposed to the average electricity plan.Sydneysiders could snag $166 in potential annual savings, while Queenslanders and ACT residents could also save as much as $105 and $106 a year, respectively.

Energy report quick facts:

Used cars come with character, there’s no doubt about that. And the truth is, if you’re opting to buy through a private seller, it’s often the cheaper (and sometimes more convenient) option.

With Australians now spending more time than ever at home, it’s no surprise their energy bills may be higher than usual. But did you know you could save potentially hundreds of dollars just by switching to one of the best electricity companies around?  While searching for the sharpest electricity prices in your state or territory can involve a lot of effort, it doesn’t have to. If you’re confused by all the jargon or feel overwhelmed by choice, Mozo has done the hard work of shopping around for you with our 2020 Mozo Experts Choice Energy Awards.“Energy tariffs can be complicated and there are several factors you have to consider when figuring out which deals are going to give you the best value,” Mozo’s expert judge, Peter Marshall said. “So for the Mozo Experts Choice Awards, we do all those calculations for you and identify the plans that would be the cheapest for the majority of people.” This year, our expert judges took a deep dive into energy markets across the country: NSW, Victoria, South Australia, the ACT and south-east Queensland. They poured hours into comparing 662 products from 43 different residential retailers in order to determine the best of the bunch.And they found that in 2020, the little guys have won out over the big three retailers. Marshall explained that because the smaller providers aren’t able to rely on brand recognition, they compete on pricing instead. “We’ve been talking to a number of [these] retailers and they impress upon us just how few staff they run with, and yet they can offer the same services as the big guys at a much lower cost because of those lower overheads,” he said. Read on to see which electricity companies snatched the spotlight with their award-winning plans:

From the moment you wake up in the morning, to the time you go to bed at night, electricity is something you rely on. And whilst energy bills have always been a point of contention, the COVID-19 pandemic has sent them skyrocketing.The majority of Australian households will face higher energy bills this year. The pandemic has created higher energy usage across the country with many Aussies working from home, parents and children schooling from home and the increase in staying in on the weekends to stop transmission.So, if there’s ever been a year to take your energy plan seriously - this should be the one! “Energy bills, after mortgage repayments, can be one of our biggest household expenses as Australians. This year’s awards analysis showed that there can be big cost differences between energy plans, so it really pays to shop around,” said Mozo Expert and Awards Judge, Peter Marshall.The Mozo Experts Choice Awards are all about helping Aussies find the best value deals. For the 2020 Energy Awards Mozo’s Expert assessed over 650 residential and over 400 small business energy plans and ranked them by cost to find the best energy plans in each state. “Switching to a cheaper energy deal means more money in your pocket. Whether you’re a family or a small business, the less money you shell out for bills, the more money you have to spend on other essentials,” said Marshall.Residential electricity winnersReAmped has been named our Electricity Retailer of the Year, winning multiple awards for best value in New South Wales, Queensland and South Australia. ReAmped consistently ranked amongst the cheapest options available for residential customers, focussing on giving their customers the lowest energy prices possible without the offers and gimmicks other competitors tend to use.