This week in banking news - Holiday debt, new Citi credit card offering, and Aussie property

In this week’s banking recap, we take a look at current sentiment among Aussie homebuyers, Citi’s venture into the buy now, pay later market, and more.

Buckling under holiday credit card debt?

Ever thrown caution to the wind and booked a holiday without regard to how you’ll pay for it? You’re not alone. According to research from Experian, three in five Australians who use their credit card to cover holidays failed to pay it off upon returning home. Those aged 24-35 struggle with holiday debt the most, taking between one month and two years to pay off their balance.

Aussie gift-giving squeezing our wallets

Australia is a nation of gift-givers, but it turns out that our budgeting skills still need some work. A recent study by the Financial Planning Association of Australia found that Aussies are spending a massive $19.8 billion on gifts each year, with impromptu purchases making up almost three quarters of that figure.

Citi jumps on the pay now, pay later bandwagon

Citi Australia made waves this week when it announced it will be throwing its hat in the buy now, pay later ring. Anyone with a Citi credit card will now have the option to pay off purchases they make in instalments over 3, 12, 18 or 24 months. And in lieu of interest, customers will be charged a flat fee representing a percentage of the amount borrowed. This can range from 0.4% for a three month loan to 5% for 24 month loans. 

Motorists can now choose repairers

A recent ruling by the Australian Financial Complaints Authority (AFCA) will allow motorists to use their preferred repairer as part of their insurance policy, rather than their provider’s choice of repairer. This comes after mounting complaints of under-repairs by insurance-approved workshops.

Westpac housing sentiment

Spring property season is upon us and homebuyer confidence is soaring, or at least that’s the takeaway from Westpac’s latest Housing Sentiment Survey. According to the findings, 51% of Australians are more optimistic about the property market than they were last year, with one in two respondents looking to finally make a purchase.

At the moment, conditions are proving quite favourable for anyone with sights on the property market. Interest rates are currently at record lows and auction clearance rates are improving. If you’re thinking about taking out a home loan be sure to visit our home loan comparison page, or check out some of the options below.

Home loan comparisons on Mozo - last updated 26 May 2024

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  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    6.14% p.a.
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

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  • Discount Variable Home Loan

    Owner Occupier, LVR<70%

    variable rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    6.01% p.a.

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

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  • Elevate

    Owner Occupier, Principal & Interest, <80% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    6.20% p.a.

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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  • Mortgage Simplifier

    LVR<80%, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    6.14% p.a.
    6.17% p.a.

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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