News Archive for May 2021

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.

When it comes to sending money overseas, many people may default to using their bank. It's familiar, it's easy, and you probably already have an account set up.

With over 170 NBN providers in Australia, there’s more choice than ever when searching for an NBN plan to suit your needs. But with so many options, it can be overwhelming to know where to start.

Choosing the right car loan can be tricky to navigate. From interest rates and fees to selecting the perfect loan term, there's a lot to think about.  So no matter if you opt to borrow from a traditional bank or an online lender, there are a bunch of dos and don'ts when it comes to getting a car loan that you should know about, to avoid being taken for a ride. Read on to find out Mozo’s expert car loan tips and compare top car loan deals on offer right now…

Choosing the right car loan can be tricky to navigate. From interest rates and fees to selecting the perfect loan term, there's a lot to think about.  So no matter if you opt to borrow from a traditional bank or an online lender, there are a bunch of dos and don'ts on getting a car loan you should know about, to avoid being taken for a ride. Read on to find out Mozo’s expert car loan tips and compare top car loan deals on offer right now… Car loan dos:

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.

Aussies are spoiled for choice when it comes to mobile phone plan options, which is why it’s so important to compare mobile phone plan providers and find a deal that suits your data, roaming, sms and calling needs as well as your budget.

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.

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.

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.

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.

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).

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.

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 .

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%).

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:

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.

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.

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.

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.”

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.

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

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”.

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.

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.

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.

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.

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:

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.

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:

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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!