Trending Financial News 13 February 2020
One in Four Aussies choose Commonwealth Bank
Commonwealth Bank is attracting more new customers in home loans and basic banking products. Commonwealth Bank grew its share of the home loan market in Australia to 25.5 per cent in the 6 months to December 2019, reported CEO Matt Comyn yesterday.
Mr Comyn highlighted the results at the half yearly profit announcement, showing more than one quarter, one in four home loans in Australia are with the Commonwealth Bank. Mr Comyn said he had been surprised by the strong result and did not expect it to continue.
CBA grew its mortgage portfolio at 1.5 times the growth of the market as a whole. Commonwealth Bank’s new lending for homes grew 4.8 per cent to A$535.1 billion in the December half of 2019.
Commonwealth Bank also grew its market share of basic transaction accounts, in the half year to December. 5.9 million customers now use the CommBank app, up from 5.3 million one year ago.
Why is Commonwealth Bank number one in Australia?
About one in four Australian mortgages are sold through the nation’s biggest bank, the Commonwealth Bank. CBA is currently growing its market share in basic everyday bank accounts as well.
Bell Potter share market analyst TS Lim told Nine Newspapers that Commonwealth Bank had a big technology lead over other bank rivals.
The CommBank App is rated one of the best banking apps in the world. Commonwealth Bank offers Apple Pay on debit and credit cards.
Industry newsletter BankingDay.com said Commonwealth Bank had been accused of having easier loan assessment and expense verification for mortgages than other banks.
See Commonwealth Bank’s current home loan rates as listed on InfoChoice in February 2020.
Which big bank has the best home loan rate?
Right now, Commonwealth Bank, Westpac, NAB and ANZ Bank have some of the lowest rates ever offered on mortgages in Australia.
When comparing mortgages, the best rate may not be the absolute lowest rate. Make sure you look at the comparison rate and consider options like offset and redraw. Use a home loan calculator to help you.
InfoChoice has collected some of the lowest rates now on offer from the big four banks on one page.
You can compare the best interest rates on mortgages from CBA, NAB, ANZ and Westpac with other loans on InfoChoice.com.au’s database of 145 lenders in Australia.
Commonwealth Bank reports massive profit
Australia’s biggest bank, Commonwealth Bank reported a half-year profit of $4.5 billion, down 4 per cent but above market expectations. CBA shares surged 4 per cent higher to $88.18 yesterday.
as cemented its already dominant position in the nation's $1.7 trillion mortgage market, as the banking giant emerged from years of industry-wide scandal in surprisingly strong financial health.
Shares in Australia's largest bank on Wednesday surged 4.1 per cent to a near five-year high of $88.18 after CBA reported a half-year profit of $4.5 billion, a fall of 4 per cent, but better than analysts had expected.
Costs for compensating and remediating customers was down more than $600 million, adding to the good profit result for the half.
Which bank has easiest home loan rules?
All major lenders have adopted changed income and expense verification processes and guidelines in 2019.
Commonwealth Bank has been accused by other industry players of failing to implement more rigorous income and expense verification in its home lending business.
Commbank has a minimum floor rate of 5.4 per cent for assessing ability to repay.
Commonwealth Bank’s allegedly easier approach to assessing home loan applications explains why the bank is growing its market share in home loans so strongly, according to analysts reported in BankingDay.com.
Commonwealth Bank’s CEO Matt Comyn yesterday said this suggestion is wrong. He said key to the bank’s success was fast decisions on applications in 24 or 48 hours enabled by digitisation.
120,000 QFF points from NAB Qantas Rewards Signature Visa
The NAB Qantas Rewards Signature Visa credit card offers 120,000 bonus points if you spend $3,000 within the first 60 days of having the card and then keep the card for 12 months.
The regular earn rate is 1 point per $1, up to $5,000 per month, then 0.5 points per dollar up to $10,000 per month. The annual fee is $395 and $295 in the first year.
See more rates and fees for the NAB Qantas Rewards Signature Visa at InfoChoice.
Check out NAB credit card interest rates and fees information at InfoChoice.
Smart devices add value for vendors
Smart homes use phone app-based technology to automate everyday tasks around the home.
Smart refrigerators can make automated shopping lists based on supply and demand and organise meals or search the internet for recipes.
Entry level smart home products like Google Home, Amazon Alexa and Apple Homekit are adding value to homes and apartments for vendors.
Read more about smart homes at InfoChoice
Crypto surges as Bitcoin faces imminent halving
The New Year’s cryptocurrency price bull run has continued into February with Bitcoin, Bitcoin Cash, LiteCoin, Ethereum, EOS and other alt-coins all rising strongly.
The price of Bitcoin is up more than 30 per cent in one month. Bitcoin Cash is up almost 80% as Bitcoin Cash miners face an imminent halving in their mining returns.
US Federal Reserve Chairman Jerome Powell gave testimony to congress that crypto markets seem to be interpreting as supportive of open ledgers.
Keep up to date with the latest outlook on cryptocurrency prices at InfoChoice.
First Home Loan Deposit Scheme lender rates compared
The federal government’s first home loan deposit scheme has a panel of banks and other lenders competing to provide first home buyers with a cheap, low-rate, low-deposit home loan.
Commonwealth Bank, NAB, Bendigo Bank, CUA, Bank Australia, P&N Bank, MyState Bank and others have FHLDS home loans with low rates.
Compare FHLDS lenders and FHLDS home loan rates at this page with a FULL List of links and rates information from First Home Loan Deposit Scheme lenders at InfoChoice.
Debit cards now more popular than credit cards
The number of personal credit card accounts in Australia fell by 6.2 per cent over 2019 to 13.8 million according to data released yesterday by the Reserve Bank. The number of business credit card accounts fell 27 per cent to 862,000 last year.
Michael Ebstein from MWE Consulting, said the average credit or charge card account had a balance of $3384 and a credit limit of $9848 with an annual spend of $22,094 in December.
For shoppers, debit cards overtook credit in the annual value of purchases in 2019: $337 billion on debit and $334 billion on credit and charge.