While motorbikes and cars share the road, there are a few differences to take into account when choosing an insurance policy to suit each kind of vehicle.Some are more obvious – like having no windshield on a bike meaning you won’t need windscreen cover – while others might be harder to pinpoint. To make sure you choose the right policy for your set of wheels, be they a pair of two or four, here are some of the traits motorcycle and car insurance policies share, as well as key differences.
Although one saving method does certainly not fit all, there are a few common traits that (most of us) subscribe to when it comes to stashing cash for a rainy day.
Competition on the home loan front continues to heat up, with People’s Choice Credit Union recently dropping interest rates for its Basic Variable Rate home loan to new lows.The offering currently sports a variable rate of 2.49% p.a. (2.49% p.a. comparison rate*), which is available to owner occupiers making principal and interest repayments. For comparison, the average variable home loan rate in our database currently sits at 3.36% p.a.There are no upfront fees and plenty of useful features to help you save on interest, such as the ability to make unlimited extra repayments. You’ll also be able to redraw any extra amounts you’ve repaid on the loan if you feel they’d be better served back in your pocket.Along with the Basic Variable Rate, PCCU is also offering a number of attractive fixed rate home loans, including the First Home Buyer Fixed Rate Loan (Package). This comes with a 1.99% p.a. 1-year fixed rate (3.91% p.a. comparison rate*), and is available to borrowers who have never previously owned a residential property.We’ve included an overview of three PCCU home loans below, but for a full list of offerings from the credit union, along with customer ratings and reviews, be sure to visit our PCCU home loans page.
As COVID-19 continues to dominate the social and economic landscape of 2020, virtual experiences and transactions are becoming more popular and often essential.Financial institutions have seen a sharp rise in online banking, while growth in online shopping platforms and digital payment methods shows no sign of slowing. But with this rise in digitised spending, scams and other fraudulent activities have also increased.
The spring property season is well and truly underway with auction rates on the rise, buyers jumping into the market and lenders slashing home loan rates. That’s right, home loan rates are still dropping!
Depending on your circumstances, a home loan could be the biggest line of credit you take out in your lifetime. So it’s important to be 100% confident when applying for a mortgage, whether it’s online or at a bank branch.Online home loans are becoming increasingly prominent and popular, particularly in response to COVID-19, with traditional banks and dedicated online lenders offering paper-free applications you can fill out without leaving your living room. If you’re considering applying online – with an exclusively digital lender or a bricks-and-mortar bank – make sure you read these pros and cons of online home loan applications first.
The history of electric vehicles (EVs) goes back as far as internal combustion engines. Thomas Edison was a champion of the electric vehicle and he and Henry Ford even worked on an electric vehicle together in 1914.
As lenders compete for home loan customers amid continued rate cuts, some are offering significant reductions on Lenders Mortgage Insurance (LMI).Today, ME Bank announced a 25% cut to LMI for first home buyers combined with discount variable rates on the ME Flexible Home Loan. LMI is typically required on loans with a Loan to Value Ratio (LVR) below 80% (that is, when the deposit is less than 20% of the value of a property). Allowing borrowers with lower deposits to avoid this could cut thousands of dollars from the overall cost of a home loan. “We’ve combined our lowest-ever variable rate, no ongoing fees and our fully featured home loan product with an innovative LMI discount to help first home buyers smash through the deposit hurdle,” ME general manager of home lending, Andrew Bartolo said. To access ME's reduction and attractive new interest rates, borrowers must have a minimum 5% deposit, intend to live in the property, and start paying back the principal loan amount plus interest. Unlike many first home buyer offers, borrowers can still apply if they have previously or currently own a residential investment property.The top 2.58% p.a. rate will be reserved for customers with a LVR under 80%. However, those with smaller deposits will still see substantial interest rate drops from ME’s current 4.31% p.a. headline offer. These start from:- 2.79% p.a. for borrowers with an LVR between 80% and 90% - 3.59% p.a. for those with an LVR over 90%RELATED: St.George reduces Lenders Mortgage Insurance to just $1 for first home buyers.Virgin Money is going one step further and making LMI $0 for eligible borrowers, whether they’re first-time buyers or upgrading to a new property.To be eligible, home buyers must apply for a Reward Me Home Loan (OO, P&I) with a deposit of at least 15% of the property’s value. This offer also comes with discounted rates, including:- Variable rates starting from 2.89% p.a.- Fixed rates starting from 2.49% p.a.Home loan customers considering Virgin Money’s offer can apply until 29 November, but must have their loan settled by 30 May next year.At ME Bank, borrowers can apply from today until 20 November, 2020, and need to settle by 26 February, 2021.If you want to scan more mortgage options, check out the offers below or head to Mozo’s first home loan comparison page.
The Morrison government intends to scrap the red tape banks and lenders currently face when issuing home loans and other credit products, allowing customers to access loans without getting bogged down in rigorous application procedures.Introduced by the Labor government following the global financial crisis, the responsible lending framework is now seen as restricting the flow of credit to households and businesses at a time when economic recovery depends on it.Winding back the restrictions would shift the burden of responsibility from lenders to borrowers, allowing banks to take credit applicants at their word when disclosing income and spending information, unless there is strong reason not to. Treasurer Josh Frydenberg said the red tape reduction would eliminate the barriers to accessing credit and assist the economy in its road out of the COVID-19 recession.“Maintaining the free flow of credit through the economy is critical to Australia’s economic recovery plan,” he said.“By simplifying the loan application process for borrowers it will reduce barriers to switching between credit providers, encouraging consumers to seek out a better deal.”Currently, banks and other lenders are overseen by the Australian Prudential Regulation Authority, but they are also subject to strict lending rules by the Australian Securities and Investments Commission. The changes will reduce ASIC’s role in enforcing responsible lending obligations, freeing up the corporate regulator to focus its attention on payday lenders instead.Under the new controls, payday lenders will no longer be able to lend money if half of a borrower’s income comes from Centrelink and the repayments exceed 10% of their income. This increases to 20% if less than half a person’s income is from Centrelink.ASIC will also tighten its controls on consumer leases and other high-risk non-banking products, such as by introducing caps on interest.As for banks and non-bank lenders, the easing of restrictions is expected to undo the climate of risk aversion many believed was stifling lending activity. For more information on lending trends, be sure to visit or home loans statistics page.
ING has reduced the interest rates on two of its most popular home loans by 10 basis points in a move which takes the online lender’s owner-occupier variable rates to new lows.
Car insurance can be a tricky business, with all the policy details needing a fine-toothed comb. Sometimes it’s best to hash things out with a few mates, so please consider our anecdotal offerings below to be in a similar vein. Here, five members of the Mozo Editorial Team suggest their preferred type of car insurance, or at least the aspects of the policy they can’t do without.
Wise shoppers are always on the look-out for bargains, especially when it comes to essential items like car insurance. If you’re after extensive coverage for your vehicle without a painful price tag, you’ve come to the right place.
Whether you’re a homeowner, car owner, or have an investment property or two up your sleeve, knowing your property is covered will give you the peace of mind should the unexpected occur. But where does one start when looking for a policy that gives you the cover you need at a price that won’t break the bank? Well, a good place to begin your search is with the winners of the Mozo Experts Choice Awards for car, home and landlord insurance.“Insurance is one of those things you don't really want to have to pay for it until you need it, but if something happens and you can make a claim it can make a massive difference to how well you recover from a bad situation”, Mozo Expert, Peter Marshall said.“It is important to make sure you understand what a policy does (and does not) cover to get the right insurance for your situation. Mozo analysis has found that even policies with similar levels of cover can have vastly different prices. Our awards are a great place to start for anyone looking for a new insurance policy as we compare both cover levels and prices to find those that we believe offer the best value overall” Peter Marshall concluded.This year’s Mozo Experts Choice Awards for Car, Home and Landlord Insurance were split into two categories: Exceptional Value and Exceptional Quality. To determine the winners, the Mozo experts compared over 160 policies from all three categories to determine the winners.Who was crowned Exceptional Value Insurer of the Year?For Car, Home and Landlord Insurance, Budget Direct was crowned Best Value Insurer of the Year for the second year running. Not only do Budget Direct offer Aussies competitively priced policies across the board, but their commitment to quality and innovation have made them a front-runner in the insurance market for over 20 years.
Just like us, cats and dogs need not only love and attention but also taking care of when they get sick. So, while it’s great to see so many people adopting furry friends during the pandemic, there are a few things you might want to consider before you do the same.
Sometimes it feels like you're throwing money out the door when you pay an insurance premium to protect your perfectly safe and functioning car, home and belongings. But if there’s ever a crisis, crash or kerfuffle, it really does pay to maintain your insurance.Here at Mozo, we try to help you find insurance policies to suit your needs. Each year we assess what’s on offer in the insurance world to find the best quality and best value policies in the Mozo Experts Choice Awards.In 2020, the Mozo judges scoured the fine print and gathered thousands of quotes to uncover the best insurance policies across comprehensive car insurance and home and contents insurance.Woolworths Insurance came out on top as a jack-of-all-trades, taking out an award in both product categories. Their Comprehensive Car Insurance and Building and Contents Insurance were both identified as top value competitors. According to Mozo’s expert judges, this means both policies offered a good level of cover while often being the more affordable option compared to others in the market.If you’d like to learn more about these great value-for-money insurance policies, check out the details below.
For most Aussies insurance is an essential part of life. But finding the best policies to protect your home, car and other belongings doesn’t have to be a drag or cost the earth. Want to know how this idyllically insured lifestyle can be achieved? Start with the Mozo Experts Choice Awards. In 2020, the Mozo judges searched through the fine print and collected thousands of quotes to uncover the best home and contents insurance policies. Of all the purchases you might make in your lifetime, buying a home is a massive investment, emotionally and financially. So you want to make sure you’re covered with the right policy. ING’s policy took out a Mozo award in the best value category, meaning it provides reassuring cover while being one of the more affordable insurance options on the market.If you’d like to learn more about this top value-for-money policy and ING’s car insurance, read the details below.
Each season in Australia brings with it naturals disasters including fires, storms and unpredictable weather. Now could be the time to ask yourself if your home and contents are adequately covered – and not just from the weather.
The Mozo Experts Choice Insurance Awards are back in full swing for 2020, and we’re excited to announce that Budget Direct has been crowned our Value Insurer of the Year, making it the second year in a row it’s taken out that honour. The Brisbane-based company has carved out a reputation as a provider of affordable insurance and has racked up wins in previous Mozo Experts Choice Awards on several occasions. This year, Budget Direct was recognised for its comprehensive car insurance policy and its home insurance policy. The team at Mozo assessed 162 insurance policies from 61 different providers in the car, home and landlord insurance space. We compared tens of thousands of quotes, covering a wide range of different customer situations, to determine which policies offered consistently low prices.Among the insurers we compared, Budget Direct was found most likely to offer Australians the cheapest quotes for their needs. This applies whether customers are after straightforward cover or are looking to add optional extras like a hire car service, reduced windscreen excess, and flood cover.“While it is great to have the peace of mind that insurance can provide, the variation in cost can be large. The Mozo Experts Choice Awards for value are a great place to start any search for insurance as we award those policies that will usually be lower priced than others while still providing reassuring cover,” said expert judge Peter Marshall.
Attention: The award-winning policies listed here are from 2020. If you're looking for the most recent award winners, read our guide to the best home insurance in Australia, and this detailed list of the best-value home insurance policies as crowned by the Mozo Experts.
Nobody expects to get in an accident on the road, but even if you’re nothing but careful, there’s always a chance some unfortunate incident might occur. That’s why it’s important to have car insurance. But with so many car insurance companies in Australia offering varying levels of cover, it can be difficult to know where to start.That’s where the Mozo Experts Choice Awards can help. Each year, our team of experts compare thousands of car insurance quotes, covering a diverse range of situations, to determine which policies consistently offer the lowest prices or best quality cover.This year, our judges recognised QBE for the exceptional value its comprehensive car insurance policy provides. Of the 66 providers compared for this year’s awards, QBE was one of only 7 insurers to make it to the winner’s podium.
Almost half (40%) of renters experience energy hardship, according to new research from the Australian Housing and Urban Research Institute (AHURI).The research found that renters with low income, existing health issues and most concerningly, living in poor conditions, were the most vulnerable and more likely to experience financial hardship with their energy expenses. However, Dr Lyrian Daniel from the University of Adelaide believes that as energy hardship can have many faces, it’s difficult to determine the most effective way to help renters. “One of the big problems is that there is no agreed definition of how the community measures energy hardship,” he said. “It is critical that we’re able to capture and then monitor the different factors that lead people into energy hardship overtime so that effective policy responses that catch people before they experience deep and long-term disadvantage can be developed.” The quality of dwellings is said to be a major concern for renters trying to reduce energy costs, as 18% of public renters and 14% of private renters were unable to stay warm during winter. Tenants also felt limited by the options they have to improve the heating efficiency of their apartment, as many landlords didn’t value making energy efficient upgrades to their investment properties. “One strategy we propose is that landlords could be ‘incentivised’ to improve their houses’ energy efficiency and performance over time” Daniel said. “This could be done through landlords being able to claim tax rebates or other financial assistance so that appliances, such as old, inefficient hot-water services, could be upgraded to more energy efficient models instead of replaced with ‘like-for-like.”
The weather is warming up and you know what that means … Christmas is coming. It’s true, it may seem like we’ve jumped the gun a little on this one. But, if you’re an online shopper looking to buy gifts from international retailers (given COVID delivery delays) you may want to get yourself sorted now. “It’s often easy to leave Christmas shopping to the last minute, but given the current environment, shoppers are going to have to be a little more savvy this year,” says Mozo Director Kirsty Lamont. “Over the past few months, customers have seen long delay times on international orders which could ramp up as the holiday period rolls around.”
In July, Mozo conducted research into how the spending habits of Aussies had changed throughout the COVID-19 pandemic. We found that 25% of Aussies have undergone a financial ‘wake up call’ and are now taking steps to abolish debt, while 39% said they would be spending less money on non-essential things, like eating out. And according to new research from Buy Now, Pay Later (BNPL) platform Openpay it looks like that money savvy mindset has set in.Openpay found that 70% of Aussies are spending more consciously than they were before COVID-19. More than half (60%) of Sydneysiders and Melbournians have even limited themselves to ‘essential spending’ only. Some of the purchases Aussies are choosing to delay include, upgrading or replacing furniture and home renovations and improvements.
Inflexible hours, difficult co-workers and little downtime, there’s no tougher job than being a parent. And with the COVID-19 pandemic forcing many Aussies to work from home, raising a child has reached new difficulty levels. In fact, more than two-thirds of parents said they need their partner on parental leave to share duties during the COVID-19 period, according to new research by ING.
Ethical and sustainable investments are the way of the future, according to the Responsible Investment Association of Australia (RIAA).The group has released new research showing responsible investment funds outperform their mainstream competitors across 1, 3, 5 and 10-year timeframes. This includes analysis of fund stability during the economic disruption caused by COVID-19.“The pandemic has resulted in significant economic turmoil, severely impacting many people’s livelihoods and financial markets globally. However it’s become clear that responsible investors are ahead of the game,” RIAA chief executive, Simon O’Connor said.“They are identifying the key themes influencing markets and returns, which helps them to better navigate turbulent times, avoid the biggest risks and capture more opportunities” The RIAA report assessed Australia’s responsible investment market in 2019. It found over $1 billion in assets under ethical management, which was a rise of 17% from 2018. This kind of investment now represents 37% of more than $3 trillion in Australia’s professionally managed assets.O’Connor said companies and investments simply won’t thrive in the future if issues like climate change, health, working rights, diversity and corruption aren’t taken into account. “Investors are fast realising that consideration of these issues provides more informed investment decisions, such as valuation and asset allocation," he said.RELATED: Accessed your super early? Here’s how to rebuild your nest egg.
It’s good news again for borrowers! Today, People’s Choice Credit Union cut its home loan rate by 20 basis points. The Basic Variable Home Loan now has a rate of 2.49% (2.49% comparison rate*) down from 2.69% (2.69% comparison rate*). According to the Mozo database, the average rate for basic, owner occupier, principal and interest variable home loans sits at 3.15%. That means People’s Choice Credit Union’s rate sits a solid 0.66% below average. Want to get to know this mortgage option a little better? Read below!
Over three million Australians have withdrawn from their superannuation since the government launched the Super Early Release Scheme to help people navigate the financial shock from COVID-19. This is according to new figures from the Australian Prudential Regulation Authority (APRA), which show $33.3 billion worth of super have been released prematurely as of 13 September, with an average payment of $7,676.Under the government scheme, Aussies were able to access up to $10,000 last financial year, with another $10,000 available from 1 July to those still struggling with bills. But for that small bit of relief, you may be paying a huge price. Some experts warn that a $10,000 withdrawal for a young person could amount to ten times as much missing from their nest egg by the time they retire.“People will possibly have $100,000 less in retirement,” finance and economics consultant, Pauline Taylor told the Australian Broadcasting Corporation.
For many, the warmer spring days are a great motivation to drink more water and snack on more juicy fruits. Now while we also love a good smoothie, we’d rather talk about whether or not your savings account is getting its five-a-day.
Today, Aussie lender NOW FINANCE introduced a no fee feature on its personal loan. That’s right, no fees. For customers applying for the NOW FINANCE Unsecured Personal Loan, and borrowing between $5,000 and $15,000, there are no fees at all. Meaning borrowers won’t pay establishment fees, ongoing fees or an early repayment penalty. However, for loans over $15,000 customers will pay fees, including a $495 upfront cost and $13 monthly service fee. So, if you’re on the hunt for a small personal loan, introduce yourself to NOW FINANCE’s newest fee-free offer:
Border closures caused by the coronavirus pandemic are expected to impact housing demand by between 129,000 and 232,000 dwellings over the next three years, according to new research by the National Housing Finance and Investment Corporation (NHFIC).Housing demand in capital cities is typically fuelled by population growth, but the NHFIC estimates Australia’s population could fall by up to 214,000 between 2019 and 2021. This would represent the steepest decline since World War I.Driving this contraction is the closure of international borders, which has brought the number of people arriving to Australia’s shores to a near standstill. This has been most keenly felt in the capital cities, where new arrivals tend to gravitate. Last year, 84% of migrants to Australia settled in a capital city, with three quarters opting for Sydney or Melbourne. The decrease in underlying demand adds to the mounting problems currently facing the construction sector. After about 162,000 homes were built in 2019, the NHFIC estimates this could drop to 137,000 this year, and 108,000 in 2021.
If you’ve been thinking about taking the plunge and investing in a solar panel system, you might have been holding out for the perfect time to get started. With spring well and truly here, it won’t take long for things to start heating up and for our air conditioners to get a serious workout. It might surprise you to know that spring is one of the best times of the year to install solar panels, as it can help us prepare for the hottest time of the year. Still need some convincing? Check out our top four reasons below!
Covid-19 has seen many Aussie households experience financial stress like never before, but with the help of a new innovative platform many are getting the support they need. It’s called Deferit, a bill payment platform that helps people pay their bills on time and avoid any late payment fees or stress. Aussies who are struggling to pay their energy bills on time can sign up to the platform, upload their bill and Deferit will pay the bill immediately on the customer’s behalf. The customer will then have to pay the cost back in four equal installments. Deferit works just like Netflix, where users are only charged a monthly fee of $5.99 when they use the service. There’s no interest or any other fees charged during the process and, according to Deferit, there is no comparable product on the Australian market.
Here at Mozo we reckon buying and selling preloved all year round is not only good for the planet, but also for your wallet. So we took a look at Gumtree’s latest Secondhand Economy Report to see what items Aussies are most interested in buying or selling used.
COVID-19 has really been a game changer when it comes to driving. Many people may now require a private way to get around, or might be rethinking the need for their car during lockdown.World Car-Free Day rolls in on September 22 this year, encouraging motorists to give up their wheels for the day to minimise air pollution. It’s one of many initiatives linked to drivers reducing their carbon footprints, but it brings up a couple of other questions, too. Firstly, can Aussies live without their cars in the post-pandemic world? And then for the more financially astute drivers: how much does owning a car cost and are there any cheaper alternatives?
As job losses and pay cuts become the new norm for Australians, the question of how to earn a sustainable income has never been more pertinent. But what are your options beyond relying on government stimulus or payday loans which charge exorbitantly high fees? Global microfinance group Grameen has stepped in to offer low-income Aussies another way forward: setting up your own small business. Microfinance refers to small amounts of working capital that are provided to borrowers, typically excluded by mainstream lenders. These loans are backed by social collateral, which means each group of borrowers is collectively responsible for making sure their members meet their repayments.Grameen Australia’s chief executive officer, Adam Mooney says Grameen has a legacy of helping countries and communities out of crisis and its expansion to Australia in the coming months will aim to do just that. “We’re seeing Jobkeeper and Jobseeker being tapered off, so we want to be there at the right time in the right place to be able to provide the incentives to work but also the opportunity to work for many millions of people,” he says. While Grameen began in Bangladesh in the 1970s, its success in reaching 130,000 women in the US over the past decade has proven that its microfinance model can also be applied to “so-called developed countries”. The idea behind Grameen’s model is that it acts as a springboard for entrepreneurs to build up their business and become self-sustaining.“We want to be an enabling financial actor rather than a permanent fixture,” Mooney says.“The ideal scenario for each business is that it generates sufficient return, that it can grow itself and doesn’t need to continually come back for additional loans.”Mooney says the model especially complements Australia’s migrant and Aboriginal and Torres Strait Islander communities who “have got great skills and an aspiration but haven’t had that sort of investment capability to be able to start their own businesses.” For example, Grameen’s group formation structure lends itself well to the principles of collective wealth and collective identity that are culturally familiar to Indigenous people.
Whether you’re new to plastic or well seasoned, you have asked yourself: will I save by paying no annual fee on my credit card? Well, that all depends on your spending habits. According to the Mozo database, credit card annual fees range from $0 to $1,200. In some instances it may be more cost effective to pay no fee and save the amount annually. But on the other hand, it could be better to pay a fee and offset it in rewards and perks or a lower interest rate. The simple way to find out if you’ll actually save money with a no annual fee credit card is to determine what type of spender you are. How exactly? Check out this scenario …
Hundreds of thousands of Australians are set to receive a call from their banks as loan repayment deferrals begin to end in September and October for some mortgage and business customers.
As the Covid-19 pandemic continues to financially test households across the country, recent research has shown there might be one generation that’s finding it harder than others. According to new research by J.D Power, millennials are more likely to be financially stressed compared to older Aussies. Almost half (41%) of millennials reported to have high or moderate levels of stress. One in five also said they were dissatisfied with their current financial situation and struggle with managing their finances.“Millennial finances have been hardest hit by the pandemic and it will take time for their personal financial condition to recover,” said Bronwyn Gill, head of banking and payments intelligence at J.D. Power Australia. But despite these feelings of uncertainty, 16% of millennials have taken the initiative to switch banks within the last twelve months. Lack of competitive interest rates and too many fees were two of the top reasons for switching at 15% and 13%, respectively. A bank’s reputation was also of high importance to 6% of younger Aussies, as they would be willing to switch based on how often banks were negatively represented in the media.
With faster international money transfers becoming even more of an essential during COVID-19, PayPal and Visa have stepped in with a payments option that could reduce your wait time from days down to minutes.
When it comes to insurance, the T&Cs on what you might or might not be covered for, could all be thrown out the (car) window if you do something illegal.
Whether you’re going to uni, TAFE or straight into the workforce, the transition from high school to the “real world” can be tough. How you’re expected to go from years of asking to use the bathroom to meeting expenses without so much as an instruction manual is beyond me.
In the current world we live in, it’s no surprise that many Aussies are looking to go green. While it’s unlikely that recycling, composting or steering away from single-use plastic will cost you an arm and a leg, other efforts come with a heftier price tag. Meet the green personal loan. Whether you’re installing solar panels, getting a water tank or even making the switch to an eco-friendly car, these loans are designed to make your sustainable dream come true.
Whether it’s to save on expenses or to have some company, having a roommate is one of the most common ways to live across the country. But sometimes different routines and habits can clash, even when it comes to energy consumption or conservation. According to new research by Origin Energy, 63% of Aussies who live in shared accommodation believe they could be doing more to reduce their energy consumption. Aussies living with their partner were reportedly more mindful of their energy use, with 84% noting cost as their main motivator for wanting to cut down on their energy use. However, despite the good intentions, 29% felt that their housemates aren’t good at conserving their energy use and are using it excessively. “Having a roommate can teach us how to have difficult conversations, from splitting bills to sharing space. So if you’re looking to save on your energy bill and feel as though your roommate could be doing better with their usage, it might be time to sit down and have an honest chat,” said Mozo Director, Kirsty Lamont. “Getting on the same page could involve brainstorming areas where you can cut back, like the laundry or heating.”
From choosing your ideal suburb to furnishing your new digs, there’s plenty to get excited about when buying a home. For most people, the first thing on the to-do list should be finding a perfect home loan fit.There’s heaps of choice in this area. Even with a single lender, there could be a dozen home loan options to investigate. Plus, during times of economic uncertainty (aka the COVID-19 world) the details of these offerings can change regularly.If you’ve skimmed the options and are feeling overwhelmed, here are some of the questions you should be asking. It’s kind of like a personality quiz, but for home loans.
When it comes to finances, there is one thing you simply cannot buy and that’s good money habits from an early age. Just like riding a bike or learning a second language, some things are just easier to pick up when you’re little.
Yesterday, the Queensland government announced it would be introducing a $50 electricity bill credit for households, due to the Covid-19 pandemic. The $50 credit will be added onto a customer’s next electricity bill and is expected to reach two million Queensland homeowners, tenants and customers who receive an electricity bill from their landlord. Queensland Energy Minister, Dr Anthony Lynham has also confirmed that another $50 credit will be distributed in 2021.According to Lyhnam, the government’s ability to provide these credits is a result of the dividends from publicly-owned power assets. “Queensland has the energy trifecta: lowest average prices on the eastern seaboard, reliable supply and a planned transition to a renewable future,” he said.“Unlike other states, the dividends from our publicly-owned companies flow not to multinational shareholders overseas, but to Queensland families across the state.”This power bill relief package is the second to come out due to the Covid-19 pandemic. Earlier this year, the QLD government announced it would be releasing a $300 million relief package, providing utility bill credits of up to $200 to households.
Taking its cues from NAB, which rolled out Australia’s first interest-free credit card yesterday with the StraightUp credit card, CBA has announced the upcoming launch of CommBank Neo.The CommBank Neo card will give customers up to $3,000 of credit. There are also no interest payments, no late payments, and no foreign currency fees - only a fixed monthly fee depending on your credit limit will apply.The three credit limits with corresponding monthly fees are detailed below. However, fees will be waived for the month if the card isn’t used and you have an outstanding balance of $0 during the statement period.
Whether you’re looking for a car to get you from A to B or want to get behind the wheel of your dream ride, there’s good news. Wisr, known in the market for great value personal loans, have just launched their very own secured car loan that will have you all revved up. Joining other online lenders with secured car loans, Wisr offers car finance with a competitively low comparison rate starting just above 6%. Yes, you’ll need to have excellent credit to get the best rates they offer, but with a variety of rates to suit all borrowers, you’ll be able to borrow between $5,000 and $50,000 and enjoy zero early repayment or exit fees too.“The entry of Wisr into the secured car loan space is great news if you’re in the market for a new car and you’ve got a solid credit history”, said Mozo Expert Peter Marshall.“With post-pandemic change in the way Australians use and purchase new cars, there has been an increase in lenders competing for business, making now a great time to purchase a new vehicle”, he further explained.So if you’ve been thinking about getting yourself a new car, now could be a good time for you to join other Aussies reaping the benefits of new-to-the-market, low rate car loans.
Home loan refinancing activity is on the rise in NSW, and according to a new report from the NSW Land Registry Services, it’s the big banks that are benefiting the most.The LRS found that more customers were moving away from the major banks than were coming on board in the months leading up to COVID-19, but after the pandemic struck that trend was reversed.Since then, the big four have been the only segment to see a substantial increase in share of refinances. Meanwhile, refinances to non-ADI lenders, other domestic banks, foreign ADIs and customer owned banks have decreased.In August alone, the number of customers flocking to the big banks from other lenders accounted for 70% of refinances in NSW, an increase of 15% on the same month last year.In total, the major banks won over 5,195 refinancers over the month, outperforming other domestic banks (+1,311), customer owned banks (+458), foreign ADIs (+412), and non-ADI lenders (+346).The major banks continue to dominate the home loan space, making up 67% of mortgages recorded on titles in NSW. This represents an increase in volume of 19% from the previous year.
Ever felt confused about all the bells and whistles attached to your credit card? Unsure how it all works? Well, it's time to get straight up! Today, major bank NAB has done just that and launched a new product: the StraightUp credit card. Unlike other credit cards that charge interest, this card comes with no interest at all. Yes, you read correctly … no interest. Instead, customers are charged a monthly fee which ranges from $10 to $20 and is dependent on the credit limit attached to the card:
Aussies looking to save money on their home loan are racing to take advantage of the latest frenzy of home loan rate cuts, as major bank and non-bank lenders compete to slash rates to crazy new lows.The super sharp rates on offer have created the perfect opportunity for savvy borrowers to shop around and potentially save thousands of dollars a year on their home loan by switching. Top lenders like HSBC, ING, Suncorp, Loans.com.au and UBank have all introduced new low rates in recent weeks, some with lucrative cashback offers to tempt refinancers even further.With variable home loan rates now starting from under 2.00% and fixed rates hitting new rock bottom lows of close to 2.00%, there's never been a better time to review your current rate against the market. So if you'd like to crush your mortgage in 2020 and beyond, take a look at some of the top deals available right now and get switching!
When was the last time you performed a home loan health check? Mortgage rates have plummeted over the past year, so if you haven’t made the move to refinance your home loan already you could be missing out on serious savings.
With many Australians now out of work, financial stress is no doubt on the rise. Over 40% reported feeling nervous, restless or exhausted in the past month, according to the Australian Bureau of Statistics. Your financial health can have a huge impact on your mental health. That’s why this R U OK? Day, it’s important to stay connected and check up on your own finances as well. Chair of the ‘R U OK?’ Conversation Think Tank, Kamal Sarma, says now more than ever, “we need to spatially distance but socially connect.” “People are affected a lot about their finances, mentally. It can create a lot of worry and concern. For example, if you’re near retirement and you see your nest egg dropping in value or you’ve lost your job, that can be really challenging,” Sarma says.If you’re feeling trapped from piling bills or debts, remember it’s never too early or too late to take back control of your money. Small steps in the right direction today can make a big difference in the long run. Read on for tips to help you regain your financial and mental footing.
Driving around in an electric vehicle (EV) might seem like a long shot for many Aussies because of the pricetag. But thanks to a brand new service from AGL, taking an EV out for a spin has just become a bit more feasible. The energy giant will today be piloting its AGL Next Electric Vehicle Subscription Service. AGL Next is the retailer's new initiative for test driving new programs, technology and partnerships for energy and more. In order to provide the EV Subscription Service, AGL has partnered with car subscription service, Carbar and EV charging supplier, JET Charge. According to AGL, this service is the first of its kind to be offered in Australia. “The market for EVs in Australia is continuing to grow but we know many customers may still be reluctant to buy an EV outright due to price, concerns about technological change or access to charging facilities,” said AGL executive general manager Future Business & Technology, John Chambers.“AGL’s EV Subscription Service eliminates these concerns allowing customers to access the latest technology as it hits the market.”Those who are eligible for the EV Subscription Service will have access to a range of leading EV brands, such as Tesla, Jaguar, Hyundai and Nissan. “It’s a convenient option, with the latest EV model delivered to the customer’s home and at-home charging facilities installed but with the flexibility to swap, upgrade or cancel the service at any time.“We know customers are becoming more attuned with subscription services which provide all the benefits but none of the hassle - this is the Netflix of electric vehicles.”
The government’s fiscal stimulus efforts have helped put a floor to Australia’s financial problems, but a fast approaching deadline will put households to the test.From 28 September, JobKeeper payments will be reduced from $1,500 a fortnight to $1,200 a fortnight for full-time workers and just $750 a fortnight for part-time workers. Meanwhile, an unemployed person on JobSeeker who is currently receiving $1,115.70 a fortnight will have their payment cut to $815.70.The JobKeeper and JobSeeker payments have been a much-needed lifeline for millions of Australians, with half of all recipients Mozo surveyed admitting the payments were keeping them financially afloat. But for many, the support measures have been less than adequate. One-third of respondents (33%) felt that the amount they are currently receiving is not enough to keep on top of their finances. The changes to payment rates from late September will only make things more difficult for this cohort. They will also be keenly felt across Victoria, where the prospect of an extended lockdown has renewed fears of widespread business closures. “More than one in four Australians currently receiving the government assistance say what they’re receiving is not enough to come and go on, painting a bleak picture for October onwards,” said Mozo Director, Kirsty Lamont.
Today major bank Westpac and credit card giant American Express have officially cut ties. Moving forward, the Westpac Altitude Black and Westpac Altitude Platinum will no longer come with the option to bundle with an American Express card. According to Westpac, there has been a shift in consumer appetite for bundled credit card products. The decision was made in partnership with Amex. “In the current environment, stats have shown that Aussie spending is low,” Mozo Director, Kirsty Lamont said.“So naturally, some credit card users might be looking to ditch their bundled credit cards and opt for something that suits their needs better, like a low rate credit card or different rewards program.” But what does the split mean for current cardholders? If you currently hold an Westpac/American Express credit card bundle, Amex will get in contact with you directly about what this change means for you. The good news is though, the split won’t affect your rewards points. Current customers will still earn points in accordance with the loyalty program they are currently enrolled in. But for new customers, these Westpac/Amex bundles will no longer be available. Both credit card providers still have a bunch of great options. Here is what else is on offer:
Despite being a popular incentive for cardholders in the United States, cashback has never really taken off in Australia, particularly not ongoing cashback offers which give customers the opportunity to earn money back over the long term.
Overnight, major bank NAB launched a $2,000 cashback offer for refinancers across a range of its home loan products. For customers looking to refinance before 31 January 2021, the cashback is available on the following loans:
Numerous studies show that more young people are putting off learning to drive. For instance, in a 2019 report, Charting Transport revealed that licence ownership for 20 to 24-year-olds had declined considerably in Victoria and New South Wales.
The refreshing floral scents and balmy nights of spring are like road trip fuel, especially since international excursions are off the table right now.Are you planning on filling up the old station wagon and becoming your own tour guide? You’ll want to tick a few boring-but-essential items off your holiday check list first. Making sure you’ve got the right car insurance for your road trip should be a top priority.Once the itinerary is sorted, check your comprehensive car insurance policy to find answers to these questions which might pop up on a road trip.
We’ve all seen the headlines: Australia is now facing its first recession in nearly 30 years. The numbers support the claim.Australian Bureau of Statistics data released this week shows the nation’s economy contracted by 7% in the June quarter, the sharpest quarterly fall in the Gross Domestic Product (GDP) on record. It follows another GDP drop of 0.3% in the March quarter. This means the country has now recorded two consecutive quarters of negative growth - the technical definition of a recession, which Australia hasn’t experienced since 1991. Treasurer Josh Frydenberg said these numbers “confirm the devastating impacts on the Australian economy from COVID-19.” Many people are out of work, while others have seen their pay cheques cut. Spending is down too, with a number of recent surveys revealing most Australians are pulling the reins in on discretionary purchases and focusing on savings instead. So, what’s next?
Interest rates on savings accounts and term deposits have plummeted in recent years. That won’t come as any surprise to the country’s long-suffering savers, but the sheer number of cuts that have been passed down by banks in the last six months might.
Longstanding superannuation fund Equip Super will change how it manages life insurance from 1 October, 2020.Equip chief member officer, Tania Cumming said the changes will focus on increased flexibility and member input.“In reviewing insurance products and talking to our members, they were clear that they wanted insurance that responded to their lifestyle needs. And critically, they wanted us to deliver these options to them rather than them having to construct it themselves,” Cumming said.While some members will see their life insurance premiums increase, Cumming said the changes are designed to meet long-term needs.“Key to getting this right is working to ensure that our insurance products align to members’ lifestyles and financial aspirations as well as offering long-term value, rather than short-term changes. It is important that we take a balanced approach that is both affordable and sustainable.”
Pet owners love their fur babies just like their own kids, so the prospect of finding the right pet insurance for your four-legged friend can be quite daunting. Knowing exactly what your pet insurance covers, what the premiums are and understanding the fine print are important steps in choosing the best cover for your pet’s needs.Mozo Expert, Peter Marshall emphasised how imperative it is to shop around when it comes to choosing pet insurance. “The key for any pet owner is finding a policy that will not only cover your pet if something unexpected happens, but finding one you can afford. This year’s awards saw us compare policy features head to head, across different animal breeds and price points to help Aussies find top value cover and award those providers that, in our opinion, offer the best pet insurance in 2020.” Pet Insurance Provider of the Year for 2020:For the second year in a row, Pet Insurance Australia outperformed its competitors to take out the top prize of Pet Insurance Provider of the Year for 2020. Taking out two awards in our Exceptional Value category and coming out strongest across the board in all categories assessed, it’s only fitting for the renowned insurer to take the crown.
Women having access to slightly lower car insurance premiums is not a new trend. Industry reports consistently show women are safer drivers on average, and are thus less risky car insurance customers. So, they’re rewarded with a better deal on their car insurance over their male counterparts who could potentially cost insurance providers more come claim time.
And since the nation is spending more time indoors, experimenting with different pastimes and hobbies has become the norm. But according to new research by Origin Energy, some households are interested in doing more than just hunting down a new Netflix series. In fact, they’re looking to slash their energy bill and be rewarded for it with a concept called ‘demand management’. Origin found that 76% of Aussies are willing to adjust the temperature on their heating or cooling appliances to receive financial incentives or rewards. More than half (58%) would be okay with their energy provider contacting them via text to encourage them to adjust temperature settings. In short, demand management is a concept that asks energy users to reduce their consumption entirely during hours when electricity demand is at its highest in exchange for an incentive, such as a gift card or credit on your annual bill. Demand management has grown in popularity over the year, both among retailers and regulatory bodies, as it has the potential to benefit both energy customers and the industry. “Demand management helps to reduce strain on the network when the balance between supply and demand can be tight, and also assist with the transition towards a cleaner, smarter energy system in Australia,” said Origin executive general manager retail, Jon Briskin. “While customers will be rewarded for shifting their energy use, the broader network will also benefit as we can help reduce demand, and support grid stability during peak periods.
Two-thirds of working Australians have had their employment affected by the Coronavirus, that’s according to research from Roy Morgan. Back in March there was a lot of uncertainty around how long the situation would last in Australia and how far reaching the effects would be.
Easy Street, a division of Community First Union, introduced a contender for best value home loan this week. Its Standard Variable Home Loan now offers rates as low as 1.95% p.a. (1.99% p.a. comparison rate*) on loans of at least $750,000. The loan doesn’t charge any monthly or annual fees and comes with a number of features, such as an offset account, fee-free redraw facility and the ability to make free extra repayments. There is, however, an application fee of $500.John Tancevski, chief executive of Community First Credit Union said it was the lowest home loan rate they have ever offered and “is evidence that it is possible to offer an exceptionally low rate without scrimping on loan features.”
As small businesses grapple with the uncertainty of operating amid COVID-19, new research shows cashflow remains the biggest barrier to recovery. For 1 in 3 small business owners, cashflow sits top of mind as their primary worry, according to figures released by business lender Finstro this week.This is based on surveys with 1,200 Aussie small businesses in July, just before Victoria’s second pandemic wave worsened. Finstro’s chief product officer, Tom Whitworth said these concerns around cashflow reflect the “payments crunch” that many small to medium-sized enterprises (SMEs) face right now. That is, there’s a real struggle to balance slow-paying customers with suppliers requesting faster payment times. “Suppliers, who are rightly concerned about securing payments in this challenging environment are increasingly demanding shorter trade terms and often cash on delivery,” Whitworth said. “This makes it difficult for small businesses who are looking to order supplies and reinvigorate their businesses after a period of significantly reduced trade or shutdown.”
What would it take for you to switch up your energy habits? How does $250 worth of rewards sound? That’s right, Origin Energy customers now have the chance to earn gift cards or Paypal cash, as part of a new online program called Spike, simply by reducing their energy consumption during peak demand periods. “Origin Spike is the first program of its kind in the Australian energy market - it’s a simple and fun way for customers to get some extra cash in their pocket as a reward for making small changes to their energy use,” said Origin executive general manager retail, Jon Briskin. Some of the ways Origin customers can participate in the program include adjusting their air conditioner temperature by a few degrees for an hour, or delaying the use of certain appliances, like the washing machine, dryer or dishwasher. Participants who regularly reduce their electricity consumption by 60% during ‘Spike hours’ have the potential to earn $250 worth of rewards annually. And according to Briskin, the Spike initiative does more than just treat customers for ditching old habits. “While customers will be rewarded for shifting their energy use, the broader network will also benefit as we can help reduce demand, and support grid stability during peak periods,” he said. Just keep in mind that Origin customers will need to have a remote-read smart meter in order to participate in the Sprike program.
As a grim economic outlook looms with nearly 1 in 10 Australians forecasted to be unemployed by December, it’s no surprise many are tightening their purse strings. The latest figures show most Aussies won’t be spending their 2020 tax return.ME Bank research released this week found that 58% of Aussies plan to add their tax return to savings, compared to 49% last year. There’s also been a switch in gears to more mindful spending. ME reveals a growing number of Aussies are looking to boost their financial position with their tax return, rather than splurge it on discretionary items. For instance, 21% intend to use the money on home loan repayments (up from 17% a year ago), while 18% want to invest it in shares or their super (up from 16%). But a small segment (22%) still plan to use their tax return on non-essentials like eating out, entertainment and travel - 1% lower than last year. These findings were based on surveys with 1,000 Australians in June 2020. The report comes as ANZ-Roy Morgan numbers released today indicate consumer confidence has dropped back down to 90.2 points (or 24.2 pts less than a year ago), following new COVID-19 outbreaks in NSW and Queensland. ME’s general manager of personal banking, Claudio Mazzarella said the current climate is propelling this shift from spending to saving.“The pandemic is clearly changing the financial habits of the nation. This survey illustrates how wary Australians are feeling in this economic climate,” he said.
Interest rates for term deposits have felt a bit like a free falling roller coaster for the past few months. The good news is these relentless cuts might actually be slowing down. Or in other words, we might be coming to the end of the ride.
Competition for borrowers continues to remain fierce heading into spring, with lenders cutting their sharpest variable and fixed mortgage rates by even greater margins and offering up more incentives for refinancers to switch loans.
While the rug hasn’t been pulled out from underneath the property market just yet, prices continue their gradual descent, with the CoreLogic home value index recording a decrease of 0.4% in August. This marks the fourth consecutive month property prices have fallen, however the rate of decline has slowed compared to previous months.CoreLogic head of research, Tim Lawless said Melbourne continues to lead the decline, with home values falling by 1.2% in August and 4.6% since the onset of the pandemic.“It’s not surprising to see Melbourne as the weakest housing market considering the extent of the virus outbreak, and subsequent restrictions, which have weakened the economic performance of Victoria,” he said.Among capital cities, only Darwin (+1%), Canberra (+0.5) and Hobart (+0.1) recorded increases in dwelling values. Elsewhere, property prices held steady or decreased only slightly, as in Sydney and Brisbane, where prices fell by 0.5% and 0.1%, respectively. Lawless expects diverging outcomes across markets as states experience varying degrees of success in containing the virus. Reliance on overseas migration as a source of housing demand will also result in uneven impacts.“The performance of housing markets are intrinsically linked with the extent of social distancing policies and border closures which also have a direct effect on labour market conditions and sentiment,” Lawless said.
The Reserve Bank of Australia kept official interest rates on hold at its September meeting this week. The cash rate currently sits at the historic low of 0.25%, where it has remained since late March.
It’s been another painful month for savers, with interest cuts dominating all changes in the at-call deposits world.*This brings the average ongoing savings account rate to 0.63%, down 19 basis points from last month.Australian Unity’s Active Saver is now leading the interest rate ranks at 1.75%. It’s overtaken former headliners like 86 400 and Bank of Queensland, which respectively shaved off 10bp and 15bp from their top savings accounts. However, to access Australian Unity’s bonus rate, customers need to deposit at least $250 a month and not dip into the account at all. Interest reduces to 0.25% if either of these criteria are not satisfied, making this a less accessible option for anyone experiencing income or employment instability.
“Ba-de-ya, dancin’ in September!” Okay, so it’s not the “21st night of September” (yet!), but it’s September nonetheless folks! So say goodbye to winter cause spring is here. And as always, we’ve got you covered with a brand new checklist to get you through the month. Your September 2020 Financial Checklist awaits!
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