News Archive for February 2021

Want to refinance your home loan and get rewarded for switching? Check out some of the latest cashback refinance offers right here.

Buy Now Pay Later (BNPL) has added another notch to the financial belts of many Aussies. However—with well over a dozen providers— it's no wonder those looking to start using this handy fintech tool might not know which provider they should use.

BankSA is a member of the Westpac Group and one of the most widely used banks in South Australia, offering customers a range of banking, insurance and other financial services. Many of BankSA’s banking products are also award winners, with the bank having taken out recent Mozo Experts Choice Awards for its credit cards and home loans.

As a local bank, Bank of Melbourne is committed to serving the banking needs of Victorian residents. Although they operate only in Victoria, they’re also part of Australia’s largest regional banking network, together with St.George and BankSA.Bank of Melbourne offers a whole assortment of products, including savings accounts, home loans and credit cards, and has scooped a number of Mozo Experts Choice Awards over the years, including in 2021.

We know finding the best value home loan can be a hard slog. That’s why thousands of Aussies turn to mortgage brokers to help them understand the fine print, particularly if you’re a first time buyer who needs help preparing paperwork or require advice for complicated financial circumstances (hello post-2020).

A pinch and a punch for the first day of the month, it’s officially March folks! And with a change of seasons, International Women’s Day, St Patrick’s Day and Pisces season all happening in the same month, here’s your March 2021 Financial Checklist to help guide you through!

You may have heard of the cheeky koala who wandered onto a freeway in southeast Adelaide a few weeks ago. The little furry friend caused a six car pile up! Luckily no one was seriously hurt and the koala in question was safely released back into the wild. However, this isn't always the case.

Eftpos today announced plans to roll out a QR payments network across Australia, in a move to help lower merchant costs and widen contactless payment options for consumers.The network will work by generating unique QR codes containing transaction details that customers can capture on their mobile phone to make a digital wallet payment.It’s technology designed to simplify the checkout process even further - debit card holders can make purchases online, via their mobile phone or in-store, without having to manually enter their card details.The announcement comes at a time when Australians have grown increasingly attuned to scanning QR codes, thanks to COVID-19 check-ins at physical venues. Eftpos’ chief executive officer, Stephen Benton said the QR network is part of the company’s strategy to boost eCommerce competition in Australia as more people embrace online shopping and contactless payments amid the pandemic. “Initiating secure purchase transactions using a consumer’s preferred digital wallet unlocks a wealth of extra benefits that will transform the way Australians choose to pay,” he said.“The QR code payments network will enable local home-grown innovation by connecting numerous APIs, consumer digital wallets, and supporting technologies on top of the existing eftpos network rails, providing choice and potential cost savings for local businesses.” One feature of this new service is that it can instantly credit loyalty points to the customer if they’ve linked a loyalty program to their mobile wallet. It will also give merchants the option to issue digital receipts.The trial is set to begin by mid this year, with a national rollout expected to finish in 2022. Want to read about other cutting-edge tech for spenders? Then check out our article on 4 fintechs that can help you tackle your finances, or visit our fintech hub for more news on the latest innovations.

This month, the number of Australians investing in cryptocurrencies such as Bitcoin surpassed the number investing in precious metals, such as gold and silver. That's according to digital asset, share trading platform BTC Markets.

Hot off the press: Big-name lenders UBank, Suncorp, Athena and Loans.com.au have just dropped brand new refinance deals - each of which offers killer variable and fixed rates in return for a generous deposit or equity on your property.So if you've built up some decent value in your property, these new offers could be your opportunity to save thousands and take years off your mortgage by refinancing. Home buyers lucky enough to have saved up enough cash to pay for a larger home deposit up front can also take advantage of these stellar new rates.UBank's fixed home loan sits competitively at a crazy-low 1.75% fixed rate for 3 years (2.22% comparison rate*), while Suncorp has dropped its 2 year fixed rate to just 1.89% (2.94% comparison rate*) and Loans.com.au is still making headlines with an introductory 1.99% discounted variable 1 year home loan rate, that rolls over to a low ongoing 2.48%. Meanwhile, online lender Athena has introduced a variable rate home loan worth celebrating with a jaw dropping 2.19% variable and comparison rate*.So, if you’ve been holding out for the right refinance loan, then today could be your lucky day! Now, let’s take a closer look at what these new loans have on offer along with some of the other lowest refinance rates on the market right now...5 new home loan rates refinancers need to know about

Finding the right home loan could mean the difference between tens of thousands of dollars in interest saved over the life of a loan, but Aussie borrowers can be forgiven for finding it hard to pick the best option given the mountain of different lenders and rates available.Thankfully, with over 50 years of financial services experience between them, the Mozo experts have a serious knack for identifying great value loans. And they used it to compare 436 loans from 86 lenders in the annual Mozo Experts Choice Awards, to identify the best value options for Aussie borrowers.So whether you’re refinancing, investing or looking to buy a new home, read on for some of the best, low rate home loans on the market to help you start saving today.

At 1.35%, right now ING's Savings Maximiser offers one of the top interest rates in the Mozo database*, however as of 1 March 2021 the online bank is adding another condition for customers to meet. This will make it just that little bit harder for savers to earn the full interest rate.

As property values once again chart an upward trajectory, home equity will be increasing for many Australians. But are mortgage holders missing a trick by failing to refinance to the lower rates available for borrowers with greater equity?

Today, Prime Minister Scott Morrison officially confirmed that fortnightly JobSeeker payments will rise by $50 from 1 April. Overall, this still amounts to a decrease to the current rate due to the cessation of the Coronavirus supplement

UK-based fintech TransferWise this week announced its decision to rebrand to ‘Wise’, in a move to reflect how it’s now expanded beyond Wise international money transfers page. Or to weigh up Wise’s exchange rates and fees against other IMT providers in Australia, head on over to our international money transfers comparison hub.

For many Aussie shoppers, using Buy Now Pay Later (BNPL) at the checkout has become as common as paying with a debit card. In fact, Mozo found that 5.8 million Aussies have at least one BNPL account. But if you are one of the few who are yet to take this innovative payment method for a spin, it’s important to understand how to use it correctly. To get you off on the right foot, we’ve jotted down some do’s and don’ts of using Buy Now Pay Later.

National Australia Bank made a number of changes to its fixed rate suite today, cutting rates for both owner occupiers and investors by between 5 and 55 basis points.The major bank reserved the largest cut for the 5-year term on the Tailored Home Loan (Choice Package). As of today, owner occupiers looking to fix long-term can now access rates as low as 2.24% p.a. (3.66% p.a. comparison rate*).Today’s reductions also saw headline rates for 3-year terms dip below the 2% mark, bringing them in line with NAB’s 4-year option, which has offered 1.98% p.a. (3.69% p.a. comparison rate*) since November last year.NAB executive of home ownership, Andy Kerr said the new rates are among the lowest offered by the bank.“Both our 3- and 4-year fixed rates for owner-occupiers paying principal & interest are now below 2 per cent, a level that would have seemed unbelievable just a few years ago. These changes will also offer our lowest ever rate to property investors,” he said.

Considering using Buy Now Pay Later (BNPL) to make purchases online? Or maybe you already do ... You’re not alone. In fact, according to ASIC's 2020 Buy Now Pay Later: An Industry Update report from the 2017-18 financial year to the 2018-19 financial year, the number of active BNPL accounts across six providers grew by 38% (from 2.7 million to 3.7 million). There was also a large increase in BNPL transactions, too. From June 2018 to June 2019, the number of purchases increased from 1.9 million to 3.4 million (an increase of 75%). “It’s not surprising that Buy Now Pay Later platforms continue to see an uptick in the amount of customers signing up and making purchases,” Mozo director, Kirsty Lamont says. “However, unlike the security of a large bank or credit card provider, some consumers may have questions around how these newer platforms store and protect their information and whether its a safe payment method to use online.” So how secure is using BNPL online? Let’s take a look … ASIC found that over the 2018-19 financial year, Afterpay (73%), Zip (11%) and Humm (11%) had the highest total value of transactions. All three platforms can be used both online and in-store. So we’ve compared these three BNPL providers to find out what information they collect from consumers on sign up, how they use it and any risks that come from using them online.

For many the barrier to installing solar panels is price - pure and simple. Of course the irony is that if you can afford the initial outlay, having solar panels is actually a money saver.

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

While many Aussies saw their finances take a bad turn in 2020 due to the COVID-19 outbreak, others wound up with a bigger bank balance because of it.

In the past, a bank was simply a place that looked after your pennies. Nowadays with ever improving tech and data collection, it’s so much more.

In 2020 UK based publisher Motoring Research did some digging on how job titles affect car insurance. Their findings revealed that drivers, chefs and hairdressers were usually hit with the highest premiums, while mechanics, administrators and designers were charged the lowest.

Small business survival over the past year has hinged on resilience, with many owners and entrepreneurs embracing digital solutions to navigate the fallout from COVID-19 restrictions. Shirley Yuan, who runs a Sydney-based jewellery store Shirley and Owen, was one such business owner who had to close up shop for three months during the 2020 lockdowns.But she said that those tough times gave her an opportunity to pick up new skills. “I bought a small light room to take photos of my jewellery for my customers. I also learnt a bit of marketing from my daughter. It amazed me that there are so many ways to do advertisements through social media,” she said. Yuan is not alone. According to new data from women’s community group Business Chicks , 65% of women business owners have been investing more in online marketing since the pandemic. More specifically, around 24% of women business owners are spending more on social media ads. Meanwhile 20% have increased their spend on IT/tech support, 19% on creative/design software, 15% on email marketing, and 7% on their Customer Relationship Management (CRM) platforms. Virtual chat/video streaming as well as learning and development have also risen in priority, with 25% and 29% respectively spending more on these areas. Out of the survey’s 586 Aussie women participants, nearly a third are now their own bosses. About 13% have started their own business while still working for someone else. “Record numbers are now running their own show and looking at ways to expand their business,” Business Chicks’ content and marketing manager, Brion Hunt said. “We are seeing a lot of SMEs re-examine their core offering, how they deliver it and how they reach and talk to their clients,” Business Australia’s general manager of content and acquisition, Genevieve Brock added.“That has prompted [businesses to] re-examine their marketing strategies as well,” she said.

There’s been plenty of talk about how hot the property market is in 2021. Listings are up, auction numbers are spiking and home loan deals are being seized upon. Presumably many buyers have seen some daylight amid Covid-19 related news and fronted up to open homes with open wallets.

At a time when savings rates have slid to less-than-spectacular levels, the allure of taking higher risks for bigger returns has attracted a growing number of people to share trading. In fact, RMIT University’s senior lecturer of finance, Dr Angel Zhong found through her research that in Australia alone, the volume of retail trading by individual investors jumped more than 60% over the lockdown period, compared to pre-COVID. This is also supported by new data from Commonwealth Bank’s share trading platform CommSec, which shows the number of their customers with no trading experience more than doubled over the past year - from 8% before February to 18% in December. A majority of these new customers (83%) are under 44 years old, made up of millennial, Gen X and Gen Z consumers. But are young people jumping in for the right reasons and with enough preparation? Let’s take a look.

If you go by the numbers, Australians haven’t been the most dedicated savers over the last decade. Economists at the Reserve Bank use a measure they call the ‘savings ratio’, which in a simple graph can show us that since about 2012 our savings in relation to our income has dropped. As such, where we have parked our money perhaps hasn’t been top of mind. Hopefully it will become more top of mind with the findings of this report. Another factor to this point has been our spending as a nation. You might even say we’ve been consistently strong spenders, with our national spending rate typically represented by a 45-degree incline on any line graph showing the years 2012 to 2019. Numbers from the Australian Bureau of Statistics can confirm this trend, so too can several survey-based reports like that conducted by ME Bank, which in 2018 showed that the combination of rising expenses and subdued income gains has led Aussies to actually dip into their savings. Yes, we have been saving less.Last year’s sledgehammer to the global economy has shifted this trend though - at least, on the savings front. As the graph below shows, COVID-19 led restrictions forced many people to revise their spending-to-saving equation, with the household savings ratio skyrocketing during 2020.

It may be a new year, and the three Reserve Bank interest rate cuts of 2020 may be slowly disappearing in the rearview mirror, but the home loan rate cut trend hasn’t let up in 2021.

Melbourne-based fintech Thrive has announced a new partnership with global payments giant Mastercard ahead of its expected launch later in the year.

Whether you know CommBank’s Dollarmites as ’80s gremlin puppets or as their schmick new animated kid-selves, their reign as Australian school banking royalty is coming to an end.

In December 2020, CommBank launched its interest-free credit card Neo with the hopes of reeling in younger Aussies who feared the classic credit card. And according to recent figures from the major bank, they’ve managed to knock that task out of the park. CommBank found that one third of all credit card approvals in December were for the Neo interest-free credit card, while the bank notes that more than half of the card’s uptake alone, came from millennials. A quick recap: the CommBank Neo credit card features no interest rate or late payment fees. In exchange for this, customers are charged a monthly fee based on their chosen credit limit. The credit card fees and limits are as follows:

Commonwealth Bank has announced it will soon be launching a new loan to help Australians adopt renewable technology and make their homes more sustainable.The CommBank Green Loan comes with a low 0.99% p.a. secured fixed comparison rate, and will be available to CommBank home loan and investment home loan customers looking to install eligible small-scale renewable technologies in their home. Customers will be able to borrow up to $20,000 to purchase items such as solar panels, battery packs and electric vehicle chargers. According to CBA, there will be no establishment or monthly services fees, and no penalties for early repayment.CommBank group executive Angus Sullivan said customers who switch to solar energy could see savings of more than $500 per year, which is enough to offset the loan repayments over the long run.”We have a responsibility to meet the current needs of our customers and the community while operating sustainably for future generations, and our new CommBank Green Loan will make financing more accessible,” he said.CommBank also noted that eligible technologies must be installed by an accredited technician who can ensure all industry best practice standards and relevant Australian Standards are met.“Over 2.7 million Australians have installed solar panels on their homes, and it’s a great way to reduce your power bills and reduce your household’s carbon footprint,” said Clean Energy Council’s chief executive, Kane Thornton.“By choosing a Clean Energy Council Approved Solar Retailer, you will be working with someone who has signed on to the Solar Retailer Code of Conduct and uses designers and installers who are accredited by the Clean Energy Council.”A pilot program will commence this month with national rollout of the CommBank Green Loan planned for May 2021. In the meantime, customers can register their interest at the Commbank website.

American Express is well known for its range of credit cards for the average Aussie or business owner. However, the credit card giant has now decided to move beyond plastic and enter the business loans market - a first for Amex outside of the United States. The decision to take on a new credit product like business loans came as a response to the rising number of small to medium enterprises (SMEs) planning to take out more than $130 billion of additional capital this year. “Many businesses are still feeling the full impact of the Covid-19 crisis, while others have rebounded with their sights firmly set on growth. We have taken a transformational step to evolve our business beyond our existing card offering to help support businesses on their journey forward,” said vice president of Global Services for American Express, Martin Seward. In order to make these loans a reality, American Express partnered with global organisations platform, ODX. “Given the dramatic shift in customer needs and preferences during the pandemic, it’s more important than ever to provide them with a digital and frictionless experience to tap into financing,” said president of ODX, Brian Geary. Jumping into the details, the American Express Business Loan will feature:

In the past, managing your budget was done with a pen, paper and good old fashioned calculator. Fast forward to 2021 and there’s an app for almost every kind of spender. According to recent ING research, around 2.9 million Aussies say they are more financially prepared than ever for 2021, so why not join the club.  Getting on top of your finances doesn’t have to be difficult or even a chore, especially with the range of digital tools out there. So if you’re committed to creating your own financial success this year, we’ve jotted down some of our favourite apps and fintech platforms to get you started.

Mastercard has pledged to enable direct cryptocurrency merchant transactions through its network later this year.

As one of the larger banks in Australia, Macquarie offers a range of banking products including home loans, bank accounts and savings accounts, as well as other financial services to customers throughout the country.

Whether out of necessity or choice, most Australians have their savings, loans, investments and superannuation spread across different institutions. But with so many accounts and figures to keep track of, maintaining an overall financial picture isn’t the easiest task.

If savings is on your agenda for 2021 or you simply want to manage your money more effectively as a small business owner, it pays to shop around to find the best banking deals out there.With so much on your plate running your small business, the less you need to worry about your banking the better. But the question begs, are you making the most of your money?With factors like hidden fees, employee wages, cash-flow and much more to consider, shopping around will benefit the way you operate in the long run.“By not shopping around you could be throwing thousands of dollars down the drain,” said Peter Marshall, Mozo Experts Choice Awards judge.     “With savings rates at such low levels, it’s more important than ever to proactively manage your accounts and get the best deals you can. In these awards, we compared and found that there was a vast difference between the lowest and highest interest rates of business accounts.”And the crown goes to…

If you’ve got some serious savings goals for 2021 or just want to limit the fees you pay for your everyday banking, choosing the right savings account and bank account is an all important step in your financial journey.Whilst it can be simple enough to know the features you want and don’t want with your banking, sifting through the hundreds of options out there can be confusing, but that’s where our Money Experts step in!The Mozo Expert Choice Awards not only help you down the right track, our awards also highlight some of the best products in the industry that offer everyday Aussies more bang for their banking buck.“With savings rates dropping dramatically in the last year, it’s more important than ever to proactively manage your money and get the best deals you can find. It might not seem like much, but a 1% difference in your savings rate can add up in the long run,” said Peter Marshall, Mozo Experts Choice Awards judge.    And the winners are…

At a time when spending, saving and transferring money can all happen at a touch of the fingertip, finding a banking app with all the right features has become a priority for many deposit customers. But without widely exploring your banking app options first, it can be difficult to know which providers are on top of innovation. That’s why Mozo has done the hard work for Australians, today announcing winners of the 2021 Mozo Experts Choice Awards for Banking Apps & Technology.As part of these awards, Mozo’s expert judges thoroughly assessed 74 different banking apps in order to find the ones with leading functionality for users. This year, neobank Up rose above much of the competition, winning two 2021 Mozo Experts Choice Awards for Excellent Banking App and Banking Innovation. The digital bank joins a cohort of much larger players like Commonwealth Bank and Macquarie Bank in the 2021 Excellent Banking App category, while it’s the only provider to snag the Banking Innovation title this year.

Macquarie has taken out the title of 2021 Everyday and Savings Bank of The Year at the annual Mozo Experts Choice Awards for Bank Accounts and Savings, which were announced this morning.

There have been considerable shifts in the rental market in the wake of COVID-19.

The short answer is yes, speeding tickets do affect car insurance premiums. That’s because as well as a ticket, you will also accrue demerit points on your licence. If you’re a learner or P1 licence holder, your licence will be suspended for at least three months.

Good news fellas! Gone are the days of splashing cash on lavish Valentine’s Day loot down at Godiva and Gucci. It turns out that it really is all about the experience.

It’s safe to say many Australians have heard of or used St.George Bank. As one of our country’s largest retail banks and a member of the Westpac Group since 2008, St.George Bank has been offering products like everyday transaction accounts, savings accounts, home loans and personal loans to its customers for almost three decades. Despite its long history, St.George has proven strong on the innovations front, snatching up a 2021 Mozo Experts Choice Award for Excellent Banking App. It’s also the parent company of two other Excellent Banking App award winners this year, BankSA and Bank of Melbourne.

Between having to apply for financial assistance for the first time, to spending time with family virtually, Aussies felt pushed to their limit in 2020. But after such a tumultuous year, is the country ready to pick up the pieces and try again? According to recent ANZ/Roy Morgan research 29% of Aussies say their families are ‘better off’ financially than this time last year, while ANZ-Roy Morgan Consumer Confidence was up by 0.9pts to 112.1 on January 30/31, 2021. There’s some positivity around.So what exactly is boosting consumer confidence among these Aussies? Let’s take a deep dive by examining some of the most common financial goals for the average Aussie.

New credit reporting laws will require banks to pass on more detailed information about customers’ credit history to credit agencies.

Seriously, how is 2021 already a month old? And while COVID-19 isn’t planning on taking a backseat just yet, anything’s got to be better than 2020, am I right?

From landing your dream job to purchasing your first home, entering a new life stage can be an exciting time. But getting older can also mean adjusting priorities and having to consider new products like private health insurance. According to Private Healthcare Australia, over 13.5 million Aussies have private health insurance, that’s approximately 54% of the Australian population. But what is it exactly and is it something you should be considering?

Now you might be thinking it’s February, why are we still talking about Christmas? Well we’re not really, more a nifty way to save money. In fact, one that the Customer Owned Banking Association (COBA) is encouraging Aussies to think about in 2021.

Sometimes we need a jolt of reality to remind ourselves of what’s important, especially when it comes to our financial future. And in the case for many Aussies, now is the time to take action and improve their relationship with money. Taking the first step can be tricky, especially when you’re not sure of where to start. Regardless of your financial circumstances, it never hurts to start simply. So to get you off on the right financial foot, check out our top four tips for using your money more positively in 2021.

Whether it’s to pay the bills or to follow lifelong career ambitions, we all need to learn how to earn cash.

Banks can profit off home loan customers by postponing how quickly they pass on a Reserve Bank cash rate cut. Typically these are larger and more established banks, including the big four, and the latest Mozo research shows that delays by these lenders has seen them pocket $1.2 billion in additional home loan interest since 2011. From time to time, they’ve also responded with partial rate cuts or withheld rate relief from variable customers - if we add those instances into our calculations too, then their extra interest earnings since 2011 soar to $29.9 billion.In fact, our research found that following the official rate cut in November 2020, only 18 out of 95 lenders passed on the rate relief in full, while 15 passed on part of the cut. It’s worth crunching some quick numbers on this: at the current average variable home loan rate of 3.29%, the monthly repayment for owner occupiers paying principal and interest is $1,750. If all 95 lenders had passed on the 15 basis point cut in November in full, the new average variable rate would have been 3.19%.

The Reserve Bank of Australia decided to leave interest rates unchanged at its first meeting of the year this afternoon. The cash rate currently sits at 0.1 per cent, where it has remained since November 2020.In his post-meeting statement, RBA Governor Philip Lowe said that while the path to recovery will be uneven, "there are better prospects for a sustained recovery than there were a few months ago."The Board forecasts GDP growth of 3½ per cent over both 2021 and 2022, but a backwards slide on the health front “would delay the recovery and the expected progress on reducing unemployment.”“On the other hand, it is possible that further positive health outcomes would boost consumer spending and investment, leading to stronger growth than is currently expected” said Lowe.The RBA slashed interest rates to emergency lows last year to shore up a struggling economy. It also launched a large scale bond buying program to bring down longer-term fixed rates, officially putting Australia on the quantitative easing path.To date, the RBA has purchased $52 billion worth of government bonds. It has not made any purchases in support of the 3-year yield target since early December.Lowe once again said the cash rate won’t increase for at least another three years, but the quicker than expected recovery has many analysts betting the Board will soon change its tune.While the unemployment rate remains elevated at 6.6 per cent, the number of jobless Australians continues to tick down. At last reading, employment rose by 50,000 people in December 2020 according to the ABS.The Board’s central scenario sees unemployment remaining at around 6 per cent at the end of the year and 5½ per cent at the end of 2022.

A friend recently asked me how to buy Ethereum. This is a kind of cryptocurrency coming in at silver on the price podium below Bitcoin.

Online lenders have thrown down the gauntlet and proven themselves serious challengers to the big four banks. And this goes beyond attractive new branding.

Consider yourself a loyal customer? Well the truth is when it comes to your car insurance you could be burning a big hole in your wallet by auto-renewing your policy each year instead of shopping around.In fact, many car insurance companies bump up the cost of premiums each time you auto-renew your policy - meaning you are more out of pocket the longer you stick around. Research overseen by former ACCC chairman Professor Allan Fels found that policy renewal prices are typically 25% higher than those paid by new customers. So how can you save from paying this car insurance “loyalty tax”? By comparing quotes from multiple insurance providers instead of just auto-renewing, you could save hundreds of dollars a year.  Mozo research uncovered an average saving of $902 a year to be gained by shopping around for comprehensive car insurance and switching to the best deal^^.By comparing other policies, you could take advantage of new customer offers like an online application discount, and also save on the price of your premiums. So start your search and stop paying too much - scroll down for some killer car insurance offers available right now.

So, you’re about to buy your first set of wheels but don’t know the first thing about car loans. Well, you’ve come to the right place! But, first things first…