1.99% mortgage rate, government support and small businesses: This week’s best banking news

  • Loans.com.au introduce new home loan rate below 2.00% 
  • What the Jobkeeper and Jobseeker extensions could mean for you
  • Small business support: SME Loan Guarantee extended
  • Meet Dabble! Xinja’s new venture into share trading
  • Aussie spending set to drop as restrictions tighten again 
  • What type of pandemic shopper are you? 

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

Say hello to the 1.99% variable mortgage rate from loans.com.au

On Wednesday, online lender loans.com.au unveiled its lowest home loan variable rate: 1.99% (2.55% comparison rate*). 

Named the Smart Booster Home Loan, the new competitive rate is available for owner-occupiers and refinancers who have a deposit or equity of 20% or higher. 

The 1.99% discount rate applies for the first year of the loan, after which it reverts to a still competitive 2.57% variable rate. 

According to the Mozo database, loans.com.au is now one of three lenders to offer home loan rates below 2.00%. 

Read full article:
Loans.com.au unveils its new 1.99% variable rate home loan and find out what loans.com.au managing director, Marie Mortimer says about this hot new rate. 

JobKeeper and JobSeeker payments extended: what it could mean for your finances

Recent Mozo data revealed that over a quarter of workers relying on JobKeeper and Jobseeker payments won’t be able to afford rent or mortgage payments if the support were to stop. That’s 1.3 million Aussies.   

However, on Tuesday the Morrison Government announced that both the JobKeeper and JobSeeker support packages will be extended beyond the planned end date next month. 

Here’s a breakdown of what will change:

- Extended to March 2021

- From Sept 28: reduced to $1,200 a fortnight (full time) and $750 for those working less than 20 hours per week 

- From March 2021: reduced to $1,000 a fortnight (full time) and $650 for those working less than 20 hours per week
- Bring reviewed end of 2020 

- From Sept 28: reduced to $250 a fortnight & income threshold increased to $300 

- From Aug 4: mutual obligation requirement to resume job searches through employment services provider will recommence

Read full article: JobKeeper and JobSeeker extensions: What the new payments mean for you to check out how to get your payment extension. 

SME Loan Guarantee Scheme extended to help Aussie businesses recover 

This week, the government announced that it is extending the SME Loan Guarantee Scheme which was set to end on September 30 of this year. 

The new phase of the scheme will run from October 1, 2020 until June 30, 2021 and allow small to medium-sized businesses (SMEs) to borrow larger amounts up to $1 million. 

Under the current scheme, the federal government guarantees 50% of business loans for SMEs from 41 participating lenders. At the moment the guarantee covers three-year unsecured loans of up to $250,000. 

However, from October the scheme will also include secured loans, longer repayment periods (up to five years) and apply to a wider range of funding purposes. 

Read full article:
SME Loan Guarantee Scheme extended to support small business recovery to check out some of the 41 lenders are participating in the scheme. 

Want to ‘Dabble’ in share trading? Xinja plans to let customers do just that


Aussie neobank Xinja has announced its plans to launch Dabble, a share trading platform within the neobank’s app. 

Aussie users will be able to buy over 3,000 US stocks and ETFs (exchange traded funds) all within the palm of their hands. The platform comes without any brokerage costs, however there will be an $8 monthly subscription fee and 1% foreign exchange margin. 

Customers will be able to buy shares using their linked Xinja Bank Account and are tracked through the Xinja app (in both AUD and USD). The platform is not yet available to investors and the launch is still subject to regulatory approval. 

Read full article:
Xinja unveils share trading platform Dabble for words from Xinja’s founder and chief executive, Eric Wilson. 

Aussies to spend less as restrictions backflip, says Zip  

Last month, Aussie spending crept back up as life seemed to be getting back to “normal.” But with the curveball of tightened restrictions in July, those numbers may plummet again. 

Co-founder and chief operating officer of Buy Now Pay Later platform, Zip, Peter Gray says that while in June it looked like Aussie businesses were recovering, it may not be enough to survive a second wave of lockdowns. 

Zip’s Weekly Spending Index showed that restaurants, cafes, pubs, bars and gyms all saw relative growth in spending over June, however they are still struggling compared to this time last year. 

For example, pubs and bars were down 30% in June compared to 2019, and gyms are down 19%. And with more lockdowns potentially on the horizon, these industries may suffer even more. 

Read full article:
Aussie spending threatened as restrictions rebound, says Zip for a more comprehensive breakdown of Aussie spending in June. 

4 types of pandemic shopper: which one are you? 

According to Deloitte’s State of the Consumer Tracker report surveys, the coronavirus pandemic has categorised shoppers into four different types. 

The report surveys ten different countries, including Australia and is updated every few weeks. Here’s what the types of shoppers it found: 

  • The stockpiler: Remember toilet paper madness? Well, the number of Aussies stockpiling has actually risen again in the past few weeks, to around 34% of shoppers. 
  • The bargain hunter: 44% of Aussies say they will be cutting back on non-essentials like alcohol, clothes, books, electronics and takeaway over the next month. 
  • The socially conscious shopper: 48% of Aussies claim they’ll prioritise buying local over the next four weeks.  
  • The convenience seeker: 41% of people are more likely to buy something if it is more convenient. 

Read full article: How the pandemic created four types of shopper for a deeper look into Deloitte’s statistics. 

Been spending less and savings more? Check out these killer savings accounts options to store your pandemic stash!

Compare Savings Accounts 2020 - last updated 16 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

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    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.


^See information about the Mozo Experts Choice Savings Account Awards

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