First home buyers, lender mortgage insurance, open banking: this week’s best banking news
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- ME Quarterly Property Sentiment Report: first homebuyers look to snag a bargain
- St. George drops Lenders Mortgage Insurance for first home buyers to just $1
- How could open banking affect your personal loan application?
- Mozo research finds the pandemic is the financial “wake up call” Aussies need
- Millennials shop around for a better rewards credit card
- Neobanks 86 400 and Up drop savings rates … again
All in this week’s best banking news recap: editor’s pick.
First homebuyers take advantage of property price drop, says ME
Over 50% of first homebuyers want to jump into the property market by mid 2021, according to ME’s most recent Quarterly Property Sentiment Report.
The stats revealed that first homebuyers are hoping to get a foot in by taking advantage of lowering property prices. In fact, it was a massive 82% that said they’d keep a look out for a bargain on a property, while only 66% of investors and 57% of owner-occupiers said the same.
ME’s general manager of home loans, Andrew Bartolo explained that this enthusiasm from first homebuyers could be a result of a number of things.
“First home buyers may be looking to find the silver lining in the current economic climate, thanks to greater potential for property price falls, record low interest rates and government support,” he said.
Read full article: First home buyers eager to snag bargains as property prices drop to take a deeper look into what else ME’s Quarterly Property Sentiment Report revealed.
Bang for your buck! St. George reduced Lenders Mortgage Insurance to $1 for first homebuyers
Ever thought Lenders Mortgage Insurance (LMI) could be the same price as a large slurpee from 7Eleven? Now it is!
On Monday, St.George dropped LMI to just $1.00 for eligible first homebuyers with a Loan to Value Ratio (LVR) of up to 85%. This means that while generally borrowers with less than a 20% deposit have to fork out for LMI, St. George customers with a deposit of 15% won’t have to face that heavy cost.
However, there are some conditions. In order to receive this offer you must be a first homebuyer who is taking out an owner-occupier, principal and interest loan of up to $850,000. This means the maximum home value will have to be $1,000,000.
Read full article: St.George reduces Lenders Mortgage Insurance to just $1 for first home buyers and find out what St.George General Manager Ross Miller said about this new initiative.
Open banking: what it means for your personal loan application
If you’re looking for a personal loan outside of your current bank, open banking should make it easier for you to find and apply for competitive products.
In a nutshell, open banking was introduced on 1 July of this year and is designed to give Aussie banking customers control over their data. Ultimately, it’ll be up to you which banks and lenders see your information, such as your transaction or savings account history, and when.
Before open banking, many loans customers had to give potential lenders their banking login details. However, this was a concern for Australian consumers, says Mozo banking expert, Peter Marshall.
He says that open banking is a more secure alternative, so that banks can review applications properly without potentially compromising customers’ login information.
“I think the biggest benefit [of open banking] is the security issue,” Marshall says.
“More and more lenders want to look at your bank account to see your transactions and check that you are getting paid what you say you’re getting paid, and that you don’t have any large regular expenses that you may not have mentioned on your application.”
Read full article: Open banking and how it could affect your personal loan application to see how open banking could determine the interest rate you receive on your loan.
Wake up Australia! Could COVID-19 be the financial awakening banking customers need?
According to recent Mozo data, the answer is yes. And it’s all about how we think about debt.
Pre-pandemic, 67% of Aussies saw debt as a ‘necessary part of everyday life’, but now one in four are looking to ditch debt forever.
“Historically, Australians haven’t been afraid of debt, particularly through our love of credit cards. We’ve racked up debt with the assumption that job security and a steady paycheck is a relatively safe bet, but a global pandemic has tipped that notion on its head as unemployment soars,” said Mozo Director, Kirsty Lamont.
“For many people, Covid19 has been a wake up call to get their finances in order and eliminating debt is a key part of that.”
Mozo’s latest numbers reveal that 68% of Aussie households have personal debt such as a credit card, personal loan or car loan. Meanwhile, 73% of debt holders are concerned about the level their debt has reached and one in five are concerned about how to pay it back.
Read full article: Covid-19 is the financial “wake up call” Aussies need, says Mozo for a comprehensive breakdown of Australian spending habits.
Millennials are on the hunt for a better rewards credit card program
According to a recent study by data analytics and consumer intelligence company, J.D. Power, Aussie Millennials are shopping around for a better rewards credit card.
Fresh data shows that 9% of Millennial credit card customers have switched cards over the past 12 months, while 22% intend to do so over the next year - more than double of older generations.
The truth is, almost half (48%) of Millennials are spending less on their credit cards, and 18% say their current card isn’t worth it. That’s why 29% of young credit card users are looking around for a better rewards program to increase their card’s value, while another 29% are looking for more benefits.
Read full article: Rewards credit cards: Millennials shop around for a better program to check out what type of credit card rewards Aussie Millennials like.
86 400 and Up cut down competitive savings rates
This week, neobanks 86 400 and Up slashed their savings accounts rates again.
Both the 86 400 Save Account and the Up Saver Account offered two of the most competitive rates on the Mozo database, each at 1.85%. However now these rates sit at a less attractive 1.70% (86 400) and 1.60% (Up).
Mozo banking expert, Peter Marshall isn’t surprised by the cuts.
“Both of these brands are neobanks, but they’re also backed by more traditional organisations: Bendigo Bank in Up’s case, and Cuscal in 86 400’s case. So to some extent they’re both going to have to deal with whatever their parent organisations are going through - they can’t be completely shielded from it,” he said.
“It would have been nice to see them hold out from a brand building perspective, but at the end of the day they’ve got to ensure that their businesses are viable in the long term, so there’s only so much they can absorb with frontrunning on rates.”
Read full article: 86 400 and Up rates the latest casualties in savings account slump for a snapshot of some of the highest ongoing savings account rates right now.
Need to make the switch to a more competitive savings account? Check out some hot options below!
Compare Savings Accounts 2020
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Savings Account
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 4 months.
Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first 4 months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Savings Account
-
Mozo experts choice awards won:
- Kick Start Savings - 2024
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. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the High Interest Savings Account
-
Mozo experts choice awards won:
- High Interest Savings - 2024
Savings Maximiser
5.50% p.a. (for $0 to $100,000)
0.55% p.a.(for $0 and over)
Yes up to $250,000
Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Maximiser
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 5.50% p.a. (for $0 to $100,000)
- standard interest rate
- 0.55% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read our Mozo Review to learn more about the Savings Maximiser
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MoneyMAX Account
No Current Offer
4.75% p.a.(for $1 and over)
Yes up to $250,000
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
CompareCompareMoneyMAX Account
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
- Maximum rate
- No Current Offer
- standard interest rate
- 4.75% p.a.(for $1 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access for deposits only.
Read our Mozo Review to learn more about the MoneyMAX Account
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Savings Accelerator
3.55% p.a. (for $0 to $50,000)
2.85% p.a.(for $0 to $50,000)
Yes up to $250,000
New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Accelerator
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 3.55% p.a. (for $0 to $50,000)
- standard interest rate
- 2.85% p.a.(for $0 to $50,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- New ING personal savings customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000. Reverts to variable ongoing rate.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Savings Accelerator
-
Bonus Saver Account
5.00% p.a. (for $0 to $250,000)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
CompareCompareBonus Saver Account
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Bonus Saver Account
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^See information about the Mozo Experts Choice Savings Account Awards
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