Latest Finance News

Mortgage Lending Criteria Tightened Leaving Many Borrowers In A Pickle

Post by Sharat on September 21, 2018 · Under loans · Comment 

As variable home loan rate changes have been made, it should come as no surprise that many Australians are rethinking their existing mortgage. Thousands of property owners in the country are set to become so called “mortgage prisoners”. This is when a homeowner cannot obtain refinancing because they no longer meet their mortgage lender’s lending requirement even if they have made every repayment on time.

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A Shocking Number Of Australians Lack Basic Financial Literacy

Post by Sharat on September 14, 2018 · Under News · Comment 

It is hardly surprising that the results of a new survey suggest that Australians who lack financial literacy tend to have low levels of savings, probably do not have much of an emergency fund and continue to carry credit card balances instead of paying down debt. The survey conducted by the University of Melbourne polled a group consisting of 15,000 people from both genders and every age group. Men tended to be more literate as were middle aged respondents in comparison to females, younger age groups and the elderly. Continue reading

Mortgage Borrowers Should Think About Switching To Fixed Rate Home Loans

Post by Sharat on September 7, 2018 · Under loans · Comments Off on Mortgage Borrowers Should Think About Switching To Fixed Rate Home Loans 

Over the last few months mortgage lenders have been raising their variable rates and passing on increased funding costs to borrowers. Many banks have lifted rates already and more are expected to follow. Experts say the cost of obtaining funding pretty much affects every lender in the market, so it is no surprise that rates are rising across the board. This means even if you borrowed from a big bank, you shouldn’t expect they will sit tight whilst every other lender seeks to manage the increased costs. Continue reading

Term Deposit Rates On The Rise

Post by Sharat on August 28, 2018 · Under banking · Comments Off on Term Deposit Rates On The Rise 

In July term deposits on tenures ranging from 1 to 3 years reached their highest level since 2017 continuing the trend of rate hikes. In June, research shows that there were ten times the number of rate hikes as there were rate cuts.  AMP, ANZ and many smaller lenders and cooperatives hiked their rates by anywhere between 5 and as many as 20 basis points. The rate hikes are in response to higher funding costs on international wholesale markets so the banks are trying to encourage more local deposits. Continue reading

Aussies Seem To Love Their Cars

Post by Sharat on August 21, 2018 · Under News · Comments Off on Aussies Seem To Love Their Cars 

For most people, purchasing a new car is a milestone and means they are taking on more responsibility. According to the latest data from the Australian Bureau of Statistics, many Australians experienced that milestone in the last calendar year. In 2017, vehicle sales increased by 4.5% in December, making it the largest monthly increase in almost six years. According to analysts, the reason for the rise was down to better quality vehicles and increased affordability, both of which produced the jump in sales. Continue reading

Would Be Property Buyers Need Financial Education

Post by Sharat on August 14, 2018 · Under loans · Comments Off on Would Be Property Buyers Need Financial Education 

The latest research from ME Bank suggests that first time property buyers don’t have the necessary knowledge required to make wise investment decisions. The lender polled 1,000 first time home buyers and found that more than half of those polled failed a basic test on purchasing property. That was despite the fact that 70 per cent of those polled said they felt confident making financial decisions. An ME spokesperson says this kind of overconfidence could end up costing people. Continue reading

New Report Suggests Many Australians Are Struggling With Credit Card Debt

Post by Sharat on August 7, 2018 · Under credit cards · Comments Off on New Report Suggests Many Australians Are Struggling With Credit Card Debt 

A new report by ASIC has found that 18.5% of Australians are struggling with credit card debt. The outstanding credit card debt in Australia totals $45 billion with $31.7 billion of that incurring interest. ASIC Deputy Chair Perter Kell says the findings prove that credit cards can result in financial difficulties for many Australians. Other research suggests that one fifth of all cardholders in the country are in a long-term debt trap with 1 in 10 carrying credit card debt for over a decade. Continue reading

Shop Around Before Taking Out Travel Insurance

Post by Sharat on July 28, 2018 · Under insurance · Comments Off on Shop Around Before Taking Out Travel Insurance 

Australians like to flock to Europe to soak up the sun this time of year as they seek to escape the increasingly cold winter. Last year an estimated 1.5 million Aussies visited Europe according to data from Tourism Australia. It’s not just Europe people are travelling to, many are taking holidays in other Pacific Island countries as well. So the question becomes one of whether it is worth purchasing an annual travel insurance policy that will cover the holder for a 12-month period. Continue reading

Australian Term Deposit Rates Are Starting To Climb

Post by Sharat on July 21, 2018 · Under News · Comments Off on Australian Term Deposit Rates Are Starting To Climb 

In the past, one of the best ways to grow a nest egg was to deposit extra cash in a high interest term deposit account. However, the last 18th months have proved that old theory to be a little inefficient. Things are starting to change though.  Since the beginning of March as many as 25% of providers have hiked their term deposit rates and April was the second consecutive month where the number of rate hikes exceeded the number of cuts.  This is great news for Australian savers who prefer a set-and-forget strategy.

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Pay Down Debt Through A Consolidation Loan

Post by Sharat on July 14, 2018 · Under loans · Comments Off on Pay Down Debt Through A Consolidation Loan 

According to the latest research, individuals who end up defaulting on a personal loan take an average of 326 days to pay off the outstanding balance. The research also suggests that Australian men are much more likely to default, accounting for 65% of all personal loan defaults. There are a couple of reasons for this, older households typically have bills which are in the man’s name and younger men tend be much more immature. In general, women tend to be better at creating and living within a budget. Continue reading