Housing demand, award-winning insurance, parental pressures: All in this week’s best banking news
- Border closures decreases housing demand and rentals
- 2020 Mozo Experts Choice Awards for Insurance are announced!
- Raising children during a pandemic: Aussies feeling parental pressure
- Meet NOW FINANCE’s new fee-free personal loan
- Low income renters feeling energy hardship
- People’s Choice Credit Union: where do basic home loans sit now?
All in this week’s best banking news: editor’s pick.
Housing market: lack of internationals pushes down rentals
New stats have revealed that border closures (as a result of COVID-19) are likely to decrease housing demand by 129,000 to 232,000 dwellings over the next three years.
These numbers come from the National Housing Finance and Investment Corporation (NHFIC), who predict that Australia’s population could fall by up to 214,000 between 2019 and 2021.
For almost 13 years international migrants have accounted for almost 60% of our population growth. So with Aussie borders closed, there are many houses that are now empty.
And it has affected renting prices across the inner areas of major cities - take Sydney and Melbourne for example:
Sydney
- Darlinghurst: -25%
- Haymarket: - 15%
- The Rocks: -15%
Melbourne
- CBD: -22%
- Elwood: -20%
- Southbank: -15%
Read full article: Housing demand, rents fall as overseas migration comes to a halt for more from the NHFIC.
Where can you get the best insurance? Check out the 2020 Mozo Experts Choice Award winners
Looking to insure your home, investment property or your car? Stop your search because our experts have found the best policies on the market.
This week, we dropped our 2020 Mozo Experts Choice Awards for Insurance across car, home and landlord insurance.
“Insurance is one of those things you don't really want to have to pay for it until you need it, but if something happens and you can make a claim it can make a massive difference to how well you recover from a bad situation”, Mozo Expert, Peter Marshall said.
”It is important to make sure you understand what a policy does (and does not) cover to get the right insurance for your situation.”
But who came out on top? There were two stand-out providers that took out the major awards this year:
- Budget Direct: 2020 Car, Home and Landlord Value Insurer of the Year
- NRMA: 2020 Car, Home and Landlord Quality Insurer of the Year
Read full article: Mozo reveals the 2020 Experts Choice Awards for Insurance for a full rundown of this year’s winners.
Pandemic pressures: Aussie parents struggling with kids in lockdown
Being a parent can be hard work. But being a parent while working from home is a whole other challenge.
One in three Aussie parents said they need their partner on parental leave to help share the duty of looking after kids during the pandemic, according to new stats from ING.
The bank found that the top reasons parents feel this way were:
- Limited contact with friends and family (65%)
- Feeling isolated and lonely (59%)
- Lack of down time from parenthood (56%)
But it’s not all doom and gloom. In fact, 35% of Aussie dads said that their bosses are ‘more understanding’ of their parenting responsibilities. Plus, 33% reported that their colleagues are now ‘more compassionate’ after seeing family through video calls.
Read full article: Parental pressures top of mind during pandemic, says ING and read what ING head of retail banking Melanie Evans says about the stats.
Want to go fee-free on your personal loan? With NOW FINANCE you can!
Early in the week, NOW FINANCE unveiled a no fee feature on its Unsecured Personal Loan.
The offer comes with no establishment, ongoing or early repayment fees and is for customers borrowing from $5,000 to $15,000.
But for customers looking for a larger loan there is no fee-free option. Instead, they’ll face a $495 upfront fee as well as an ongoing $13 monthly service fee.
According to the Mozo database, there are nine other lenders that have fee-free products. These include Alex, Citi, Credit Union SA, Liberty, MoneyPlace, Police Credit Union, SocietyOne, Southwest Slopes Credit Union and Sydney Mutual Bank.
Read full article: NOW FINANCE drops fee-free personal loan to start comparing fee-free personal loans today.
Energy costs tough on low income renters, says AHURI
A massive 40% of Aussie renters struggle with energy hardship, says research from the Australian Housing and Urban Research Institute (AHURI).
The stats showed that low income renters were amongst those most vulnerable, along with those with existing health issues or living in poor conditions.
A major concern for renters when attempting to reduce energy costs is the quality of the dwellings they live in. For example, 18% of public renters and 14% of private renters struggled to stay warm over the winter months.
Read full article: Low income renters struggle with energy costs, says AHURI and check out what Dr Lyrian Daniel from the University of Adelaide says about the findings.
People’s Choice Credit Union cuts it’s basic home loan rate: how the rest of the market compares
This week, People’s Choice Credit Union reduced it’s Basic Variable Home Loan rate from 2.69% (2.69% comparison rate*) to 2.49% (2.49% comparison rate*).
According to the Mozo database, the average variable rate for a basic, owner occupier, principal and interest home loan is currently 3.15%.
But while People’s Choice Credit Union’s rate sits a happy 0.66% below average, it just missed out on being one of the top five rates on offer.
The top five variable rates right now for basic home loans:
- Reduce Home Loans Super Saver Variable Home Loan: 2.04% (2.19% comparison rate*)
- Firstmac Basic 80 (Broker Special) Home Loan: 2.19% (2.59% comparison rate*)
- Homestar Star Essentials Home Loan: 2.29% (2.32% comparison rate*)
- Pacific Mortgage Group Standard Variable Home Loan: 2.44% (2.44% comparison rate*)
- loans.com.au Smart Home Loan 80: 2.48% (2.50% comparison rate*)
Read full article: People's Choice Credit Union cuts rate: where basic home loans sit now to find out how the big banks compare.
Want to weigh up home loans right now? Check out the options below!
Compare Home Loans - last updated February 27, 2021
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.CompareCompareSmart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
2.09% p.a.
fixed 2 years2.56% p.a.CompareCompareBasic Home Loan
Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
- interest rate
- 2.09% p.a.
fixed 2 years
- comparison rate
- 2.56% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
interest rate
comparison rate
2.34% p.a. variable2.34% p.a.CompareCompareUHomeLoan - Discount Offer
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
- interest rate
- 2.34% p.a. variable
- comparison rate
- 2.34% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
2.19% p.a. variable2.19% p.a.CompareCompareCelebrate Variable Home Loan
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Special Fixed Rate Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
1.99% p.a.
fixed 4 years3.45% p.a.CompareCompareSpecial Fixed Rate Home Loan
Ability to split your loan between fixed and variable. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply
- interest rate
- 1.99% p.a.
fixed 4 years
- comparison rate
- 3.45% p.a.
- Upfront fees
- $0
- Ongoing fees
- $395.00 yearly
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $25,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $5,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $2,000 cashback when you refinance your home loan from another financial institution when you apply by 31 March 2021 and are funded by 31 May 2021, min $250k, LVR
Read our Mozo Review to learn more about the Special Fixed Rate Home Loan
Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
2.19% p.a. variable2.20% p.a.CompareCompareNeat Home Loan
Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) and can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.20% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Neat Home Loan
^See information about the Mozo Experts Choice Home Loans Awards
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