News Archive for May 2021

Yearly household transport costs rose a shocking $1,870 between 2020 and 2021, a new report from the Australian Automobile Association (AAA) shows.

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

When it comes to mobile phone plans, Aussies are spoiled for choice. With so many providers and perks to choose from, comparing mobile deals is as easy as dialling 1-2-3. But how do you choose between all the options and ensure you find the right provider for you?

Whether you’re a healthy lifestyle nut or a fitness newbie, you’ll find myriad gyms with deals that could be your perfect fit.

We all lead busy lives and the last thing many of us want to think about is what to cook for dinner or that dreaded trip to the grocery store. Meal delivery kits have been a real lifesaver for families wanting to avoid take out while looking for convenience at their fingertips when it comes to nutritious, home-cooked meals.

Ready to renew your insurance policy? Not so fast! Letting your coverage tick over while your premium increases may not always get you the best value. But which policies could be better? That’s where the 2023 Mozo People’s Choice Awards come in.

Over the past couple of years, Australians have spent more time at home than ever before. But more time in the house has meant more heating, more air conditioning, more cooking and more Netflix.

Manifesting your dream home? Finding the best shops is no mean feat. After all, if home is where the heart is, we want to curate it with love, good value, and good service.

Superannuation is a word that may raise a pang of guilt for many Australians. We all know how important it is, but so many of us don’t dedicate enough thought towards it.

As the cost of living continues to rise it pays to know your banking provider has your back, which is why factors like trust and customer service should be top of mind.

At a time when many Australians are working from home and spending more time than ever indoors, having fast and reliable internet can make all the difference to one’s quality of life. But it can be hard to figure out which NBN providers offer top-notch broadband service without some trial and error. The 2021 Mozo People’s Choice Awards are a way around this. Now in their 12th year, these awards survey real Australians about how highly they rate their household services, including NBN providers.Unlike the Mozo Experts Choice NBN Awards, where our experts use data analysis to determine the best value broadband plans, the People’s Choice Awards are based on the attitudes of everyday people, with 2,132 individuals participating and rating 89 NBN plans in total this year. “The basic NBN service is pretty similar, no matter which provider you go with. What really differentiates each provider is how responsive they are when you do have a problem, and whether their service meets your expectations and is up to scratch in a practical sense,” said Mozo Banking Expert, Peter Marshall.“This is where knowing actual people’s experiences of a NBN service becomes really valuable.”  Let’s take a look at which NBN providers came out on top in the 2021 People’s Choice Awards:

Putting money away in savings continues to be a top priority for Aussies in 2021, with the latest figures revealing households saved an extra $8.6 billion a month over the 12 months to March 2021.*Getting a decent interest rate on your savings is key to boosting your stash, and the good news is that a handful of financial institutions have just made this task a whole lot easier by boosting savings account interest rates in recent weeks.Virgin Money has launched a market leading new bonus savings rate of 1.50% p.a. for the first three months with its competitive Boost Saver Account, reverting to a high ongoing 1.20% p.a.Rabobank also offers a generous intro rate of 1.35% p.a. for 4 months, while ING has the current top unrestricted ongoing bonus rate at 1.35% p.a.So, if saving money is top of your financial priority list this year, here are some of the top savings and term deposit accounts on the market right now to help you to make the most of your savings.

One third of Australians adore their pets more than their human family members, according to a survey conducted by ING.

It's official. A new wave of online business lenders has hit Australian shores, bringing with them a range of low cost, flexible funding options for Aussie businesses big and small.

For decades it’s been the norm for Australians to reach into their wallets for a plastic debit card to withdraw cash or make a payment at the counter, but that’s about to change for customers of one bank.

Fans of the Microsoft Store will be pleased to hear that they can now purchase new tech and avoid being hit with a big bill straight away. If you don’t want to, or simply can’t offload $1,000 in one go, then the option to split the payment into installments could be a welcome relief.

If there’s one sector that the pandemic hasn’t slowed down, it’s international money transfers (IMTs). New research from the World Bank reveals that the volume of global remittances fell by only 1.6% over 2020, despite initial forecasts that it would plunge by 20%.

Tasmanian residents will be offered $1,000 by the state government to rent out their private vehicles to tourists through the Hire and Drive Reimbursement Program.

Fresh stats have shown that over half of Aussies shoppers are opting for home grown. This is according to CommBank’s first ever Consumer Insights Report which evaluated the impact of the COVID-19 pandemic on Australian consumers. The report delved into the spending habits of Aussies and revealed that more consumers are choosing to make purchases from local businesses instead of overseas. And it’s across a range of items, the most popular included:

One of Australia’s largest home loan lenders, ING, has announced that it will be making a number of changes to its fixed rate home loans, including the introduction of tiered pricing for different loan-to-value ratios (LVRs).

Following the federal government’s announcement of a new $10 billion reinsurance pool, Mozo has done the maths on what the current situation is for residents of northern Queensland, the NT and northern parts of WA.

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

Although we may be days away from the official start of winter, the recent chill hasn’t stopped many Aussies from dusting off their heaters and pulling out their favourite knitted jumpers. Unfortunately, one thing households aren’t always prepared for is a higher than normal energy bill, as winter is one season where our electricity and gas usage typically jumps. The good news is there’s still time for households to get ahead this winter and switch to a better value energy plan before the dreaded July 1 price hike. But where do you start? Comparing energy plans can be a tricky task, especially if it’s been a while since you last shopped around. But if Mozo analysis is anything to go by, it’s well worth the hustle in the long run.According to our 2020 Energy Report, depending on the distribution zone, Aussie households have the potential to save between $200 - $300 a year on their annual energy bill just by making the switch from the average to the cheapest energy plan. There are a number of things you’ll want to consider when comparing energy plans, like whether you prefer to sign up for a contract or a no-contract deal. Opting for the latter can provide more flexibility in terms of switching, while a contract energy plan can give you the chance to lock in prices for a fixed time period. Other features you might want to compare are any fees or whether the retailer offers GreenPower options. With a GreenPower plan, the retailer vows to purchase the equivalent amount of electricity you have nominated, which can range between 10% - 100%, from clean energy sources, like solar, wind or hydro.

Australia’s fifth largest home lender, Macquarie, has just dropped its home loan rates for owner occupiers and investors in a no-holds barred move that signals it means to take an even larger share of the booming mortgage market off the big banks in 2021.

Whether it’s the appeal of paying off purchases in interest-free instalments or the convenience of doing so via a handy mobile app, Buy Now Pay Later (BNPL) has cemented itself as a popular alternative to credit cards and other forms of credit.

Feeling dismayed at proposed EV taxes? If cost is the main sticking point for you when it comes to going green on the road, then you might be interested in this piece of news.

If you’re in the market for a credit card, chances are you’ve seen a good mix of deals and offers from a range of providers. That’s why it’s essential to do your research and shop around. But contrary to popular belief, finding the right option is only half the battle. The other part is ensuring the card is a winner. Because beneath the flashy or limited time offers, there’s often a catch to watch out for. So to help you avoid a nasty credit card trap, we’ve listed five features to look out for during your search for your plastic match.

FOMO in the property market can be very real. Whether housing is seeing a price boom or bust, first home buyers may feel the urge to ‘get in’ before prices skyrocket, which could see them sacrificing value or must-haves on a property checklist.

Between leaving wet towels on the floor and forgetting to change the toilet roll, our partners can be full of annoying habits. But according to new research from online dating website eharmony, plenty of Aussie couples bicker about more than just the small stuff. The research revealed that more than half of Aussie couples (58%) cite money as the biggest cause of conflict in their relationship. With that in mind, it won’t come as a surprise to many that one in five (20%) Aussies keep their bank balances separate, while one in ten (14%) admitted to hiding things like credit cards, personal loans and bank accounts from their partner. Sadly, almost a quarter (20%) of Aussies believed a partner would judge their spending habits, which could explain why many chose to hide their financial habits. “Regardless of income levels, financial stress can have a major impact on relationship satisfaction. If there isn’t a foundation of trust when it comes to money, it can lead down a dangerous route,” said eharmoney relationship expert, Sharon Draper. “A couple ideally needs to agree in their approach, whether they choose to merge bank accounts or keep things separate.”Interestingly, one in three (33%) singles said they wouldn’t trust a potential partner to be as responsible with money as them, with 35% of singles stating their potential partner should have no debt at all.These numbers correlate with research conducted for the 2018 Mozo Financial Dealbreakers Report, which set out to uncover Australia’s major financial deal breakers for Aussie relationships. The report revealed that debt was also a major cause for a relationship to end, with almost half of Aussies choosing to draw the line at $10,000 worth of personal debt, while 37% said a $5,000 debt would be enough to tap out. Our study also found that destructive spending, like gambling or excessive spending, was the top reason to end a relationship (80%), followed closely by lying about financial circumstances (77%) and an inability to pay for basic expenses (71%).

As Australians rush to get into the property market and take advantage of the low interest rates currently on offer, it’s hardly a surprise that new home loans are being taken out at record levels.

As Australians rush to get into the property market and take advantage of the low interest rates currently on offer, it’s hardly a surprise that new home loans are being taken out at record levels.

Victorian Treasurer Tim Pallas has announced a suite of measures ahead of the release of this week’s state budget, including plans to increase the land tax for taxable properties worth more than $1.8 million.The changes hope to strike a balance “between those wanting to buy their first property and large property investors who continue to profit from soaring property values."Once in place, the land tax will increase by 0.25 percent for taxable land holdings valued between $1.8 million and $3 million. Taxable land holdings higher than $3 million will also increase by 0.30 percent.The Treasurer said that the new measures will only be felt by a fraction of the 10 percent of Victorians who pay land tax, and estimates they will bring in more than $380 million a year.“All up, we invested $49 billion in the last budget to support families and businesses through the pandemic using our balance sheet,” Pallas said.“Now, we're taking all the hard and necessary actions to make our tax system fairer and more progressive.”But the news has been met with fierce opposition. Real Estate Institute of Victoria president Leah Canlan said the changes would deal a significant blow to an already struggling property sector.RELATED: 2021-22 Federal Budget leaves renters out to dry"There's high vacancy, there's lots of unpaid rent and this is just another effective tax that those property investors now have to manage,” she said."We don't want to see Victoria become the state no one wants to invest in and with additional taxes for the property sector, that's where we're heading."Along with the changes to the land tax, the Victoria government will introduce a premium stamp duty rate for property transactions exceeding $2 million. This will see stamp duty payable increase to $110,000, plus 6.5 percent of the dutiable value in excess of $2 million.For information on property and lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

While the government will be introducing or extending programs which aim to help first home buyers, little attention has been paid to the nation’s renters, a cohort which makes up nearly a third of all Australians.Data from property research firm CoreLogic revealed that national rents rose 3.2 percent over the quarter to March 31, adding to the already significant number of hurdles renters face when saving to buy a home.Meanwhile, housing prices have continued to soar, increasing by 10.2 percent across Australia after bottoming out in September last year (CoreLogic).Rather than attempting to cool down the property market, which is growing at a record pace, the government’s focus so far has been on increasing the accessibility of mortgages.Last week, it announced the Family Home Guarantee, an initiative which will let 10,000 eligible single parents purchase a home with a deposit of as little as 2 percent.It will also make an additional 10,000 places available under the First Home Loan Deposit Scheme, starting from 1 July 2021.First time buyers will also be able to access a maximum of $50,000 in voluntary super contributions, up from $30,000, to fund their property purchase under the First Home Super Saver Scheme.RELATED: What does the 2021 Federal budget mean for you?While these measures are welcome, advocacy groups have criticised the government for neglecting low and middle income Australians by failing to invest in social and affordable housing.Kate Colvin, spokesperson for the Everybody’s Home campaign which represents renters and the homeless, said the Budget measures neglect the areas where need is greatest.“Escalating housing prices are pushing more and more people into homelessness, including women and children escaping family violence, young people who can’t stay at home and older people on low incomes, especially women,” she said.

Between changes to home ownership and increases to superannuation, it’s been a big week for finance news. But things have also perked up within the energy sector, with the Federal Government unveiling a $1.6 billion plan as a part of the 2021 Budget. Over the next four years, the government will primarily focus on low-emissions technologies, allocating $635 million to this cause. Some of those investments will include building renewable energy microgrids in remote areas in the Northern Territory and Northern Queensland.“Our 2021-22 Budget measures will provide reliable, secure and affordable energy to all Australians, and increase investment in technology solutions to reduce emissions in a way that supports jobs and economic growth,” said Minister for Energy and Emissions Reduction, Angus Taylor. “This Budget builds on the Government’s existing initiatives to guarantee reliable and affordable energy, stimulate jobs and reduce emissions without imposing new costs on households, businesses or the economy.”An additional $25 million will be allocated to assist new gas generators with making the transition to hydrogen. However, many critics have argued that the Budget overlooks necessary funding for network upgrades, which is argued to be essential for the future of electricity stability and reliability. “If this truly is the infrastructure budget, Infrastructure Australia has identified that there is a need for major transmission upgrades to supply network access to renewable energy zones as a high priority, particularly in light of retiring thermal generation,” said Clean Energy Council’s chief executive, Kane Thornton. “It’s disappointing that in a ‘nation-building’ infrastructure budget, upgrades that will enable the access and security of clean, low-cost power have not been prioritised.”

A number of home loan lenders have begun lowering variable rates, bucking the trend we’ve seen in recent months of focusing cuts exclusively on fixed options.Tic:Toc, an online lender backed by Bendigo and Adelaide Bank, cut variable rates by 15 basis points this week. Its Variable Home Loan now offers owner occupiers rates as low as 2.04% p.a. (2.05% p.a. comparison rate*).Macquarie Bank made similar moves, reducing variable rates for owner occupiers by 15 basis points. Rates for the Macquarie Basic Home Loan now start at 2.34% p.a. (2.34% p.a. comparison rate*) for borrowers with an LVR below 60%.QBANK, Athena, MyState Bank, Citi, Aussie and Bank of Sydney have also adjusted variable rates downwards over the month.Variable rates tend to move in line with the cash rate, which has remained unchanged since November 2020. While out-of-cycle cuts aren’t exactly common, lenders will occasionally shuffle their rate sheets to remain competitive.“The housing market is roaring ahead, and people are very interested in investing in property because other investment options may not be so attractive for them,” said Mozo’s banking expert Peter Marshall.“A great way to make sure you get new customers is to have low rates. So the lenders that are shifting their rates are being very strategic and trying to get as much business in the door while things are running hot as they possibly can.”Of course, borrowers need to be confident they will be able to afford their repayments when rates do go back up, particularly those who have taken out high LVR loans.“These are variable rates, and when the rate cycle turns - and that may not be terribly far away - people will find that their lenders pass those rate increases onto them,” Marshall said.

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

It’s no secret skyrocketing property prices over the past few months have made it harder for first home buyers to save for a deposit - and record low rates of wages growth aren’t helping either.

Online lender Athena has fired up the mortgage wars of 2021, cutting its variable home loan rates to new record lows. The mortgage challenger says its new Celebrate Home Loan 1.99% comparison rate* for borrowers with 40% deposit or equity is now the lowest fee-free variable home loan rate in the country.

If there’s one piece of finance news that’s been on almost every Aussie’s lips this week, it’s the 2021 Federal Budget. And since its official announcement on Tuesday night, we’ve heard changes around home ownership, superannuation and childcare.To instill some positivity in women after a series of scandals and criticisms from last year’s budget, the Morrison Government is now investing $354 million in women’s health over the next four years. This includes areas, like funding for cervical cancer, breast cancer, endometriosis and reproductive health. “Given over half the Australian population is made up of women, it’s important that we have equal access to health services and support. Our investment of $353.9 million into women’s health will benefit all Australians today and into the future,” said Minister for Women, Senator Marise Payne. Other areas where funds have been allocated are:

Australians looking to buy their first home are feeling increasingly negative about the property market thanks, in part, to skyrocketing house prices across the country.

Whether you’re a tax-time veteran or approaching the EOFY as a newly-minted employee, you’ll want to get as much out of your tax return as possible. Knowing all the work-related expenses you can claim tax deductions on will help you in that mission.

The federal government delivered its 2021 Budget this week, with spending plans for health, aged care, child care, infrastructure, housing and more.

Just when you thought home loan rates wouldn’t tumble any further, online lender Tic:Toc this week has reduced its variable offer to a new rock bottom for home buyers with smaller deposits.The Tic:Toc Variable Home Loan fell by 15 basis points to just 2.04% (2.05% comparison rate*) for owner occupiers making principal and interest repayments with loan-to-value ratios (LVRs) of up to 90%.It’s now the most competitive rate in the Mozo database at this LVR tier, or the third best among <80% LVR loans. Investors making P&I repayments weren’t left out either, with Tic:Toc’s variable rate for this borrower group dropping by 14 basis points to 2.19% (2.20% comparison rate*) for <90% LVRs.This again places Tic:Toc ahead of competitors, and it has now become the new variable rate leader in the Mozo database for investors too.But Tic:Toc wasn’t the only lender to announce variable rate cuts this week. Macquarie Bank also stepped in today with 15 basis point reductions across all of its variable home loans for owner occupiers. Rates now start as low as 2.34% (2.34% comparison rate*) with the Macquarie Basic Home Loan for owner occupiers on P&I repayments with <60% LVRs. Meanwhile, for higher LVRs of up to 90%, rates have dropped to 2.89% (2.89% comparison rate*). Or if you’re looking for a loan with more bells and whistles, the Macquarie Offset Home Loan (Package) also saw variable rates for owner occupiers on P&I decline to 2.34% (2.62% comparison rate*) for <60% LVRs and 2.89% (3.16% comparison rate*) for <90% LVRs.As a point of comparison, all rates mentioned above sit below the average variable rate in the Mozo database of 3.27%. These moves come just days after online lender Athena dropped its variable home loan to an ultra-low 1.99% (1.99% comparison rate*) for borrowers with <60% LVR.

The Climate Council has criticised the federal government’s newly released 2021/22 Budget on its failure to fund a clean recovery from Covid-19. The council described the government’s “lost opportunity to create jobs” as a “national shame”.

After another tough year for various industries, especially tourism, aviation and the arts, businesses are once again a priority in the 2021 Federal Budget.

View Mozo's latest Buy Now Pay Later statistics report.Buy Now Pay Later (BNPL) has taken the digital payments world by storm over the past few years. In fact, the Reserve Bank of Australia reported that the value of BNPL transactions grew by 55% in 2019/20 and had more than tripled since 2016/17. These stats came from the RBA’s ‘Developments in the Buy Now, Pay Later Market’ March 2021 bulletin, which weighed up company reports from four ASX-listed BNPL companies: Afterpay, Zip, FlexiGroup and Openpay. According to the data, by December 2020 Australia’s two largest BNPL providers, Afterpay (3.4) and Zip (2.5), had almost 6 million active accounts* between them.

It’s rolled around far too quickly, but tax time is almost upon us once again. Like last year, you might have extra questions if you’ve been working from home or have taken up a side hustle over the last 12 months of COVID-induced workplace weirdness.

Although many Aussies are awaiting the full details of the Federal Budget, many schemes have already been announced, one of which surrounds the childcare subsidy. The Federal Government has revealed it will add an extra $1.7 billion to the current childcare subsidy, currently $10.3 billion a year. The new addition is said to specifically target low to middle-income families earning less than $130,000 a year. It’s also estimated that around 40,000 parents will now have the chance to work one extra day a week. At the moment, the current arrangement for the maximum childcare subsidy for families with two or more children under the age of five is 85%, this now jumps to 95% for incomes between $40,000 and $110,000, benefitting half of Australian families. “This is a targeted and proportionate investment that simultaneously makes childcare more affordable, increases workforce participation and boosts the Australian economy by up to $1.5 billion per year,” said Treasurer, Josh Frydenberg.“These changes strengthen our economy and at the same time provide greater choice to parents who want to work an extra day or two a week.”

Coming off one of the most expensive policy years in the country’s history, the government unveiled its 2021-22 Federal Budget today, detailing its spending plans for health, infrastructure, housing and more. The “pandemic budget,” as it’s been called by Treasurer Josh Frydenberg, hopes to give Australia’s economic recovery efforts a shot in the arm, boost productivity, and finally bring unemployment below 5 per cent.There's already plenty of debate about whether it will be sufficient, but there’s no denying the measures outlined today are ambitious. Below, we run through some of the main areas the government will be focusing on.

The 2021 Federal Budget will be a financial plan like no other. After more than a year of COVID-induced lockdowns, income support subsidies, industry bailouts, childcare support schemes and travel bans, the government is honing in on efforts for economic recovery.

Are your multiple debts getting too hard to manage and a little expensive? A debt consolidation loan may be what you need! What’s that, you ask? Well, a debt consolidation loan is a financial product that allows you to roll your personal debts into one and pay them off with one regular repayment over the loan term. Commonly, customers consolidate high interest debt like credit cards, personal loans and car loans in order to receive a lower rate and pay less in interest over time.  There are some tactics though when it comes to consolidating debt, to ensure you are actually saving money and in some cases, time as well. Because at the end of the day, there is no point taking out a consolidation loan if it’s going to end up costing more than paying off your debts separately.

An additional 10,000 places under the First Home Loan Deposit Scheme (FHLDS) for new builds will become available from July 1 following an announcement made as part of the 2021 Federal Budget.

Saving for a 20% deposit could take more than four years for the average Australian, but online lender UBank is offering a solution to help home buyers get into the market sooner. UBank today announced it will provide home loans of up to 85% loan-to-value ratio (LVR) for owner occupiers, without charging an extra cost known as Lenders Mortgage Insurance (LMI). LMI is usually required if you’re borrowing more than 80% of the property value, and this expense can add up to tens of thousands of dollars. One common way to waive LMI is to have a guarantor - usually that’s your parents or the government via its First Home Loan Deposit Scheme. But if neither option fits your situation, UBank’s new loan will give eligible borrowers with at least a 15% deposit another avenue for avoiding LMI. For customers with LVRs ranging from over 80% up to 85%, UBanks is introducing a variable rate of 2.49% (2.49% comparison rate*), available to owner occupiers making principal and interest repayments. Alternatively, the same borrower group could snag a three-year fixed rate of 2.05% (2.41% comparison rate*).These are ultra low rates compared to the rest of the Mozo database, sitting 78 basis points below the variable rate average (3.27%) and 27 basis points below the three-year fixed rate average (2.32%) for 80% LVR owner occupier loans.

The government will hand down the 2021 Federal Budget tomorrow, after a turbulent year which saw it pour billions of dollars into keeping households and businesses afloat. According to Treasurer Josh Frydenberg, Australia’s world class recovery efforts will receive another boost this week, with funding going towards jobs creation, healthcare and disaster preparedness."This will be another pandemic budget being delivered in the midst of a once-in-a-hundred year pandemic and just seven months after the last budget," he recently told the Australian Chamber of Commerce and Industry."The Budget will lay out the next phase of Australia's economic recovery plan, to grow our economy so we can deliver the jobs and guarantee the essential services Australians rely on, and keep Australians safe."Along with tax offsets for low and middle income workers and more funding for Australia’s aged care system, the government has announced several ambition programs which will be laid out in more detail on Tuesday. These include:

Online lender Athena has announced a number of cuts to its variable rate home loans today, including a 20bp reduction to its <60% LVR Celebrate Home Loan which now sits at just 1.99% (1.99% comparison rate*).

Single parents hoping to get a foot on the property ladder will receive a boost this year, following the announcement of a new government initiative as part of the 2021-2022 Federal Budget.Dubbed the Family Home Guarantee, the program will allow single parents to purchase an existing home or build a new one with a deposit of as little as 2%.The program will commence 1 July 2021 and stretch over a period of four years, during which it will provide 10,000 guarantees to single parents with dependents.Importantly, the program won’t just be available to first home buyers. It will also support those hoping to re-enter the housing market after a divorce and family breakdown.To be eligible, applicants must be Australian citizens, at least 18 years of age, and have an annual taxable income of no more than $125,000.RELATED: What can we expect from the 2021 Federal Budget?Commonwealth Bank chief executive officer Matt Comyn said the measure will provide much-needed support to an often overlooked group.“This announcement will come as a welcome relief for hard working single parents, particularly those working in essential services such as education, health care and public safety, looking to buy their first home or re-enter the property market,” he said.Rates of home ownership are typically lower among single parents, who don’t have the benefit of a second income earner to help save for a deposit. Recognising that home ownership is a key source of intergenerational wealth, the program hopes to help single parents achieve financial security for their families.The program will benefit single mothers in particular, with the government estimating that 80 per cent of the 125,000 eligible Australians will be women.The government has also announced an additional 10,000 spots will be made available under the First Home Loan Deposit Scheme. These will be rolled out on 1 July 2021 and will allow eligible applicants to purchase a home with a deposit of just 5%, with the government guaranteeing the remaining amount.If you’re thinking of purchasing a home, browse our first mortgage guide for more tips. And to get a sense of the rates currently available, visit our home loans comparison page, or browse the selection below.

It is anticipated that the federal government will extend the Low and Middle Income Tax Offset (LMITO) for another 12 months, when Treasurer Josh Frydenberg hands down the 2021 Federal Budget Plan on Tuesday.

As part of the 2021-22 Federal Budget, the government has introduced a number of budget measures to give Australians a leg-up when it comes to buying their first home.

Over time, property investment has become a popular financial goal for Aussies of all ages. And according to research from ING, many ‘Gen Z’ investors are ditching city suburbs for holiday hot spots for their portfolios. The research found that 41% of Gen Zers (Aussies born between 1997 and 2015) would prefer to invest in a holiday location, while 37% of all investors in the survey said they would consider purchasing a property in outer city suburbs. Just over a third (31%) of Gen Zers also said they’d prefer to have flexibility with working and renting in the city while owning property in a holiday town. Unsurprisingly, investors cited value for money and the desire for a quieter lifestyle as the top two reasons for wanting to invest in property within a holiday area, at 50% and 35%, respectively. “Despite the increase in house prices, it’s clear from these findings that Gen Zers are financially savvy and looking at alternative ways to get on the property ladder,” said ING’s head of home loans, Julie-Anne Bosich.

Teachers Mutual Bank has reported a dramatic increase in interest in just 18 months. Between 2019 and 2020 the mutual bank (formerly a credit union) says its product portfolio increased a staggering $4.3 billion, from $2 billion to $6.4 billion.

Yes you can! … if you’re the right type of borrower. According to the Mozo database, three car loan providers are offering fixed and variable rate options that start with a 3 right now. This is extremely competitive, as the current average variable car loan rate on our database is 6.68% across new and used vehicles. Here’s what’s on offer:

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

Despite Buy Now Pay Later (BNPL) slowly becoming the trendiest way to pay for everyday purchases, there is still a good deal of confusion around what it means for a user’s credit health. In fact, according to new research from BNPL company Openpay, 44% of BNPL users don’t understand how the service impacts their credit score. However, the research also found that Aussies are generally savvy with understanding why BNPL companies perform credit checks before approving users for an account. Openpay found that 76% of users know that BNPL companies can conduct a credit check to assess a customer’s affordability, while 77% understand that applications for BNPL will appear on their credit report. Interestingly, more than half (62%) of respondents believe that every BNPL company uses the same affordability assessment, which is untrue. "Credit checks and credit scores are a confusing element of the financial system for everyone, particularly when you add cash flow management solutions such as buy now pay later to the mix alongside traditional forms of credit," said chief operating officer at Openpay, Theresa Abela. When it comes to building a healthy credit score with BNPL, it seems we still have ways to go. A massive 85% of Aussies believe missing a payment can negatively impact their credit score, while 62% think paying on time via their credit card will help boost their score.

New figures released by the Australian Bureau of Statistics (ABS) on Tuesday show that the number of Australian homeowners who are switching their mortgages is on the rise.

PM Scott Morrison announced this week on Cairns 4CA radio station that the federal government will be introducing a $10 billion reinsurance pool for northern Australia. The reinsurance pool will come into place in July 2022 and the Insurance Council of Australia has expressed its support for the scheme.

As we enter the month of May, not only do we begin to creep closer to the end of the financial year, but we’ve also started to see a number of significant rate changes in the personal loans sphere, which we’ll touch on more below.

Fixed home loan rates are officially on their way back up, and new figures confirm this. According to Mozo data, one in four lenders have raised fixed rates since January, setting the clock ticking for borrowers looking to lock in at the bottom of the cycle.

Looking for the creme de la crème in home loans? Then you’ve come to the right place! Australia’s best home loans for buyers, refinancers and investors have just been revealed in the 2021 Mozo Experts Choice Home Loan Awards.

No matter what sort of internet user you are, there are a range of broadband plan options available, and with different speeds too. Maximum speeds currently sit at 12, 25, 50, 100, 250 and 1000 Megabits per second (Mbps).

In an effort to transform Victorian roads, the Victorian government has announced it will be offering 20,000 subsidies of up to $3,000 for the purchase of new electric vehicles (EVs) under $69,000. The new initiative is a part of the government’s plan to have half of all new cars sold in Victoria emission-free by 2030. The first 4,000 subsidies were made available on 2 May 2021. “When people get an EV (electric vehicle) they are starting to save significant dollars off their bills," climate change minister, Lily D 'Ambrosio told the ABC."It's almost up to $1,600 that is saved off fuel and maintenance costs, each and every year, so we want to make it easier for Victorians.''In addition to the subsidies, the VIC government also plans to spend $19 million on new charging stations and an extra $10 million on government EVs, which it hopes will amount to more than 400 EVs over the next two years."This is very, very ambitious but [a plan] we are absolutely committed to achieving,” said D'Ambrosio.

In response to more millennials becoming entrepreneurs over the past year, the Commonwealth Bank has now extended its zero-interest credit card ‘Neo’ to small business customers.‘Neo’ was launched some eight months ago to compete with the rise of Buy Now Pay Later products, and came soon after fellow big bank NAB’s release of its own version of a zero-interest credit card called StraightUp. While this product was initially meant for consumers, CommBank’s latest research suggests younger small business owners are another untapped market. CommBank found that customers aged 25 to 40 made up more than half of all its new business transaction accounts in the last six months. These millennials accounted for 57% of new bank accounts during this period, while Gen Zers (those aged 24 or younger) opened another 10% of new accounts. The research also revealed that the portion of millennials with a side hustle has risen by a massive 40% over the past year. “While it’s been a challenging year for many small businesses, the pandemic did present entrepreneurs with the time and opportunity to start a small business as a passion project or an alternative source of income and we’ve seen many of our new business customers skewing younger,” CommBank’s executive group manager of small business banking, Claire Roberts said.

While the NSW and Queensland floods are now at bay, many residents are still feeling the flow-on effects of the disaster. The NSW SES alone responded to over 12,000 requests for help and conducted more than 1,000 direct flood rescues.

New home loan commitments continued to soar in March, as renewed investor confidence helped push the market past the $30 billion mark.The latest round of lending indicators from the ABS show the number of new home loans rose 5.5 per cent over the month, now reaching $30.2 billion.The ABS points out the surge has been largely driven by investors, who accounted for more than half of the increase. Over the month, new investor loans rose 12.7 per cent to $7.8 billion.ABS head of Finance and Wealth, Katherine Keenan said investor lending bottomed out 12 months ago but has been on a gradual incline ever since. “Investor lending has seen a sustained period of growth since the 20 year low seen in May 2020. The rise in March is the largest recorded since July 2003 and was driven by increased loan commitments to investors for existing dwellings,” she said. Growth was strongest in Queensland, with investor lending climbing 19 per cent. NSW and Victoria also recorded gains of 13 per cent and 13.7 per cent, respectively. The ACT was the only market which did not record growth.RELATED: House prices are still rising, but at a less frantic paceBy contrast, new loan commitments for owner occupiers rose just 3.3 per cent to $22.4 billion over the month. However, this remains significantly elevated and represents a 55.6 per cent increase since March 2020.Owner occupier loans saw the steepest increases in NSW (8.2 per cent), followed by Victoria (1.6 per cent) and Queensland (1.1 per cent). However, they fell 6.5 per cent in Western Australia and 2.8 per cent in South Australia.Owner occupier loans for the construction of new dwellings also dropped 14.5 per cent in March to $3.6 billion. According to the ABS, this is the first decrease since the HomeBuilder grant was introduced in June last year.Though applications for the HomeBuilder grant closed in April, existing applicants have been given an additional 12 months to submit all necessary documentation before construction can commence.For more information on property and lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Regardless of how much time you spend on the internet, there’s nothing worse than a slow broadband connection. In the NBN world, this issue is often referred to as ‘congestion’, as it typically occurs during times when internet demand is at its highest, such as during the peak evening hours. And unfortunately for many Aussie households, it’s a pretty regular problem. To combat this, many NBN providers have begun offering ‘congestion-free NBN plans’ to customers. But what exactly are these types of plans and how do they differ from regular NBN products?

With more than 170 NBN providers in Australia, there is now more choice than ever when it comes to choosing the provider and plan for your individual needs.

Treasurer Josh Frydenberg will hand down the Federal Budget on Tuesday, May 11. In short, the Budget estimates the government’s revenue and spending for each fiscal year. It also considers what's important or valuable to our nation at a given point in time.

With winter on the horizon, it’s time to start unpacking those comfy blankets and fluffy slippers and schedule in some serious screen time.

The Reserve Bank of Australia kept official interest rates on hold at its monthly board meeting this afternoon. The cash rate currently sits at 0.1%, where it has remained since November 2020.In his post meeting statement, RBA governor Philip Lowe outlined the Bank’s revised set of economic forecasts. It now expects GDP to grow by 4¾% over 2021 and 3½% over 2022.“A pick-up in business investment is expected and household spending will be supported by the strengthening in balance sheets over the past year,” Lowe said.“This recovery is especially evident in the strong growth in employment, with the unemployment rate falling further to 5.6 per cent in March and the number of people with a job now exceeding the pre-pandemic level.”Lowe once again ruled out a tightening of monetary policy until the labour market recovers and inflation is sustainably within the 2 to 3% target band.Any pressure to change course was eased last week, after consumer price index data for the March quarter saw headline inflation rise by just 0.6%. The annual rate of inflation also undershot expectations, increasing just 1.1%.Underlying inflation has not been within the RBA’s target band since late 2015. Today, Lowe said he expects it to remain below the 2% mark until mid 2023.Deputy RBA governor Guy Debelle will provide more insight into the Bank’s thinking on Thursday, ahead of the release of the RBA’s quarterly statement on monetary policy later in the week.RELATED: May home loan snapshot: Longer term fixed rates are risingProperty values continue to climb, but the pace of growth has eased as of late. According to CoreLogic’s national home value index, prices rose by 1.8% in April, down from the 32-year high of 2.8% that was recorded in March.While the lift in property values is welcome news for the RBA, CoreLogic research director Tim Lawless points out that younger Australians face mounting difficulties when saving to buy a home.“With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first home buyers and lower income households are finding it harder to save for a deposit and transactional costs,” he said.Those hoping to secure a low rate on longer terms will also have to contend with rising fixed rates.Following a trend we first observed in March, 15 lenders in the Mozo database increased rates for 4- or 5-year terms throughout April. The average 4-year fixed rate now sits at 2.46% p.a. (up 0.9% over the month).Short-term fixed rates continue to move in the opposite direction. Notably, bcu reduced its 1-year fixed rates by 0.31%, bringing its owner occupier offering to 1.67% p.a. (3.85% p.a. comparison rate*).For more information about mortgage and lending trends, head over to our home loan statistics page. And for an idea of where interest rates currently sit, visit our home loan comparison page.

Residents of the NT and Tasmania are the least optimistic about the next five years of work, according to a new survey from ADP Research Institute. The survey of more than 7,000 people living in the Asia Pacific region shows that around 30% of Tasmanians and Territorians are worried about the future of work.

The value of Australian property has jumped higher once again according to new data, though the rate of increase has slowed down compared to previous months.

Home loan fixed rates are on their way back up, and new figures confirm this. According to Mozo data, about a quarter of lenders in our database have lifted their longer term offers this year. Our number crunch reveals at least 25 out of 99 lenders have bumped up their fixed rates since January, with the majority being for 4 or 5-year terms. UBank is the one of the latest providers to join this trend. The online lender last week raised its 3-year fixed rates from 1.75% (2.22% comparison rate*) to 1.85% (2.24% comparison rate*). Despite this 10 basis point increase though, UBank still maintains its lead as the lowest 3-year fixed rate for owner occupiers in the Mozo database. Westpac and the rest of the Westpac Group (BankSA, Bank of Melbourne, St.George) also made similar moves with their 4-year and 5-year fixed rates last week, pushing these offers up by 30 basis points. Mozo’s senior research analyst, Mitchell Pollard said this emerging trend of fixed rate hikes comes in light of improvements in Australia’s economic outlook. “In the last year or so, we saw the banks price their fixed rates quite aggressively so that they could keep customers on and lock them in for 3, 4 or 5 years in one go. They felt safe doing so, knowing that inflation and therefore the cash rate would stay low for a long time,” he said.“But fast forward to today and a quarter of lenders [in the Mozo database] have adjusted their longer-term rates back up in some amount. They’re not huge amounts, but it’s a sign that banks are placing their bets on the future looking brighter in four or five years’ time, thanks to the vaccines and lots of stimulus here and abroad. “That’s what fixed rates are essentially - they’re a bet on where interest rates are going to be in a few years.”

Queensland has become the latest state to announce a ban on bank-led school banking programs, including the Commonwealth Bank’s well-known ‘Dollarmites’ program.

When it comes to finding a great low-rate personal loan, shopping around is a must.  With unpredictable rate movements, it's more important than ever to compare your personal loan options before locking in an option.

Using your existing bank to transfer money internationally might seem like the simplest option, but did you know that using a specialist transfer provider can make the process a lot more cost-effective?

Six months have now passed since the Reserve Bank cut the official cash rate in November 2020 - a move which paved the way for the hundreds (if not thousands) of fixed home loan rate cuts we’ve witnessed ever since.

While reductions to savings account interest rates have slowed in the last month, cuts have still dominated rate changes. This has left the average ongoing savings rate at just 0.44%.

Another month gone, another round of term deposit interest rate changes to report on. In April, Mozo's research team counted at least one cut from 18 different term deposit providers. The average interest rate for a $25,000, 1-year term deposit didn't change much, dropping slightly from 0.53% p.a. to 0.52% p.a.*

A pinch and a punch for the first day of the month - It’s May folks! And boy is the weather starting to get colder!