Mortgage deferrals, financial stress, green loans: this week’s best banking news
- Mortgage deferrals about to end: 450,000 Aussies to be affected
- Financial stress highest amongst millennials says JD Power
- Green loans v regular loans: how do they stack up?
- Queensland Government introduce $50 credit for electricity customers
- Paypal, Visa drops instant IMT service
- Savings cut: Volt reduces rate by 0.20%
All in this week’s best banking news: editor’s pick.
450,000 Aussies face mortgage and business loan deferrals ending
Home loan and business loan deferrals are set to end in September and October, meaning a massive 450,000 will have to start making regular repayments again.
This is according to the Australian Banking Association, who says that 260,000 mortgage customers will be contacted by their lender over the next few weeks. Plus, 105 business loan holders will also be contacted.
“The loan deferral measure offered to customers by Australia’s banks has led to the largest ever customer contact process in the industry’s history, with an additional 5000 new or redeployed staff working to ensure customers understand their options,” said ABA chief executive, Anna Bligh.
Customers will face a six month assessment to determine whether their loan deferral will be extended, restructured or come to an end.
Read full article: 450,000 Australians are about to get a call from their banks as mortgage deferrals end for a deeper look at what the change could mean for you.
Young Aussies most likely to be stressed about their finances, says JD Power
Millennials are more likely to be stressed about their finances than their older counterparts, reveals new research by JD Power.
Stats showed that a massive 41% of young Aussies say they had high or moderate levels of stress when it comes to their money. Plus, one in five aren’t impressed with their current financial situation and find it tough to manage their finances.
“Millennial finances have been hardest hit by the pandemic and it will take time for their personal financial condition to recover,” said Bronwyn Gill, head of banking and payments intelligence at J.D. Power Australia.
However, 16% of millennials have taken charge and switched banks over the last year, with interest rates and fees being the top reasons for doing so.
Read full article: Millennials more likely to be financially stressed, says JD Power to find out which banks are stepping it up for millennials.
Is a green loan a better option over a regular loan?
If you’ve got a large eco-friendly project around the corner, a green loan may be what you’re after.
These loans cover things like solar panels, water tanks, green vehicles and more! But is it the best option for you?
According to the Mozo database, green loans have a lower average rate than regular loans. Here’s a breakdown:
- Multi-purpose Secured Loan: 8.09%
- Green Multi-purpose Secured Loan: 6.29%
- Unsecured Loan: 10.47%
- Green Unsecured Loan: 7.73%
- New Car Loan: 6.58%
- Green Car Loan: 6.23%
“Not only do green personal or car loans make it easier for Aussie customers to fund their eco-friendly initiatives, lower rates also act as a reward for people choosing more sustainable options when it comes to their home or car,” Mozo Director, Kirsty Lamont said.
Read full article: Do green loans stack up against regular loans? for a full rundown of which lenders offer green loans right now.
Qld Govt offers second power bill relief package
This week, the Queensland State Government announced a new initiative to help queenslanders during the pandemic: a $50 electricity bill credit.
The credit will be added to the next bill received by around two million electricity customers.
According to Queensland Energy Minister, Dr Anothony Lynham, another $50 credit will be given some time in 2021.
This is the second energy relief initiative offered by the Queensland Government, after it’s first $300m package which provided up to $200 credit for queenslanders’ utility bills.
Read full article: Queensland Government announce $50 electricity bill credit to find out how queenslanders can save big on their energy bills.
Need to send money overseas instantly? Meet PayPal’s Instant Transfer
Launched in the US in March 2019, PayPal’s Instant Transfer now allows worldwide users (including Aussies) to make almost real-time international money transfers.
The service is a collaboration between PayPal and Visa, which allows customers to send money from a PayPal, Xoom or Venmo account to eligible Visa cards (via Visa Direct).
And it’s for businesses too. Any businesses that use PayPal-owned services like Braintree, iZettle or Hyperwallet will also have access to PayPal’s Instant Transfer.
With Instant Transfer you can send money from your PayPal, Xoom or Venmo account to eligible Visa cards, via Visa Direct. Businesses using other PayPal-owned payments platforms like Braintree, iZettle and Hyperwallet will also have access to the service.
Read full article: International money transfer in minutes? Paypal, Visa have the answer to find out what Visa’s chief product officer, Jack Forestell says about the product.
Neobank rate cut: Volt slashes savings account by 0.20%
And another savings account takes another hit.
This week, neobank Volt reduced it’s savings account interest rate by 20 basis points - leaving it at 1.45%.
This is the third cut to Volt’s Savings Account since it’s launch. Check out the changes so far:
- March 14: Rate cut from 2.15% to 1.90%
- March 31: Rate cut from 1.90% to 1.65%
- September 16: Rate cut from 1.65% to 1.45%
Read full article: Volt Bank to cut savings account rate by 0.20% to see how other neobanks compare.
On the hunt for a more competitive savings account rate? Check out some killer options below!
Compare Savings Accounts - page last updated October 17, 2020
- MyState BankMyState Bank
Bonus Saver Account
^See information about the Mozo Experts Choice Savings Accounts Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.