First home buyers, mortgage deferrals, electric vehicles: This week’s best banking news
- COVID-19 delays first home buyers’ plans to secure a property
- ASIC lays out expectations for mortgage deferral deadlines
- Over half of drivers willing to purchase an electric vehicle
- Super early access: how some Australians are misusing their money
- AUD jumps up again!
- Would-be travellers opting to spend on eating out instead
All in this week’s best banking news recap: editor’s pick.
First home buyers: 52% delay jumping into the property market due to COVID-19
Over half of first home buyers have been delayed in purchasing a property as a result of the global pandemic.
This is according to fresh research by Gateway Bank which found that 52% have experienced a setback in their hunt for a home, while a further 16% have put their plans on hold indefinitely.
Alarmingly, the stats also showed that of the 700 Aussies surveyed, 45% dipped into their deposit savings to cover everyday expenses. In addition, 17% made withdrawals to help support their family financially.
Read full article: Property buyers delay plans due to COVID-19, finds Gateway Bank to hear from Gateway Bank chief executive officer, Lexi Airey.
ASIC instructs lenders as mortgage deferral deadline approaches
Over 800,000 Aussies have deferred mortgage repayments since COVID-19 support started in March, according to the Australian Banking Association’s (ABA) July stats.
But as September approaches, so does the deadline for many of these loan deferrals - meaning customers will have to start making regular repayments again.
Australian corporate regulator ASIC has released a guidance on what it expects from home loan lenders as these deferral expiries get closer. Here are a some of ASIC’s instructions:
- Lenders must contact customers before expiry date.
- Customers must be offered a clear outline of their payment obligation moving forward and assistance where required.
- Lenders must contact customers who cannot afford their old repayments directly and assess the situation thoroughly.
Read full article: Mortgage deferral deadline: ASIC lays out expectations as September nears for more of ASIC’s outline to lenders.
Drivers charged up for electric vehicles but still in small number
The recent State of Electric Vehicle Report 2020 unveiled that a massive 3,266 electric vehicles (EVs) were purchased at the beginning of this year. Plus, 56% of Aussies would consider buying one as their next car.
And when it comes to sustainability, Australian drivers also have that in mind. The report showed that 45% of respondents claimed they’d use renewable energy to power the car, such as solar power from their rooftop (31%) or green power sources (14%).
However, the adoption of EVs is still relatively slow. In 2019, EVs only accounted for a low 0.6% of vehicles purchased.
Read full article: Aussies ready for electric vehicles but stuck in neutral and find out what chief executive of the council, Behyad Jafari says about the latest figures.
Aussies are misusing their early access super money
Aussies have collectively withdrawn over $31 billion from their superannuation funds since the government granted early access as a form of COVID-19 support.
But the truth is, not everyone who withdrew necessarily needed the extra cash injection.
In fact, 38% of people who accessed their funds didn’t experience a drop in income, according to financial data and analytic company Illion. Plus, an additional 21% received a pay rise, as well as dipping into their superfund.
The report also revealed that 64% of people were spending their super on discretionary items such as clothing, furniture, eating out and alcohol. However, essential spending also saw a jump from 22% to 24% between the two rounds of early super access.
Read full article: Some Australians are misusing their early access super and see who early access to super will impact the most.
Australian dollar holds ground as it hits another high
Although many feared the Aussie dollar would crash, it has remained solid and gained strength against the US dollar.
Late last month, the AUD cracked 70 US cents for the first time in 15 months, and has been steady since then.
On Wednesday, the AUD/USD exchange rate was at 0.724699 (about 72 US cents to an Australian dollar). When compared to mid-March levels at 55 US cents and even pre-pandemic levels at 66 US cents, it exceeds both numbers.
OFX’s head of Australia and New Zealand, Michael Judge, attributes the positive trend in part to the weakened US dollar as a result of the COVID-19 pandemic.
Read full article: Aussie dollar hits another high: what are my best money transfer moves? for more from Michael Judge and to check out how to protect your international money transfer.
Aussies move spending from travel to food
As many would-be jetsetters hang up their sight-seeing shoes, a bunch have turned to eating out instead.
This is according to Toluna’s ongoing COVID-19 Barometer that reveals that people living in non-lockdown states plan to eat out more over the coming months. In particular, 60% of those living in WA say they intend to visit local cafes and restaurants in the near future.
So instead of hitting up Parisian cafes in the Euro summer sun, they’ll opt for options closer to home, as well as spend more money at local hairdressers, salons, cinemas and gyms.
Read full article: Aussies spend on eating out given no overseas travel
If you’ve been more of a saver than spender, or want to make the switch, check out some of the savings account options below!
Compare Savings Accounts - last updated February 27, 2021
Bonus Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.20% p.a. (for $0 to $250,000)0.10% p.a.(for $0 and over)Yes up to $250,000Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.
CompareCompareBonus Saver Account
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category.^ No monthly account fees and no minimum balance requirements.
- 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 Everyday or Glide transaction accounts.
- Access
- BPay, 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
Serious Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.30% p.a. (for $0 to $1,000,000)0.15% p.a.(for $0 and over)Yes up to $250,000No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*
CompareCompareSerious Saver
$0 monthly account fee. Link to any Australian bank account.
- account fee per month
- $0.00
- Maximum rate conditions
- No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Serious Saver
Online Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.10% p.a. (for $0 to $500,000)0.35% p.a.(for $0 and over)Yes up to $250,000Bonus rate for the first 4 months from account opening
CompareCompareOnline Saver
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening
- 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 Online Saver
Flexi Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.25% p.a. (for $0 to $5,000,000)0.05% p.a.(for $0 to $5,000,000)Yes up to $250,000Increase balance by at least $300 in the month
CompareCompareFlexi Saver
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
- account fee per month
- $0.00
- Maximum rate conditions
- Increase balance by at least $300 in the month (excluding interest)
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
Read our Mozo Review to learn more about the Flexi Saver
Hero Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.80% p.a. (for $0 to $250,001)0.01% p.a.(for $0 to $5,000,000)Yes up to $250,000Minimum deposit of $200 and no withdrawals in the month.
CompareCompareHero Saver
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
- account fee per month
- $0.00
- Maximum rate conditions
- Minimum deposit of $200 and no withdrawals in the month.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Hero Saver
Fast Track Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.05% p.a. (for $1 to $250,000)0.05% p.a.(for $1 and over)Yes up to $250,000Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.
CompareCompareFast Track Saver Account
Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $1.00
- Other restrictions
- Bonus interest rate criteria is effective from 1 February 2020.
Read our Mozo Review to learn more about the Fast Track Saver Account
^See information about the Mozo Experts Choice Savings Accounts Awards
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