Trending Financial News 17 February 2020
Is Scott Morrison’s government banning cash?
The Morrison government has new proposed cash ban law that makes cash business transactions illegal over a limit of $10,000.
The Senate Economics Committee is currently investigating the proposal.
The Labor opposition has not yet decided whether to support the ban or not.
Gold industry blogger John Adams from Adams Economics wrote on Friday that cross benchers, some Liberals and Nationals and Labor MPs are opposed to the ban.
Learn more about Scott Morrison’s proposed cash ban at InfoChoice.
How much is the mortgage industry worth in Australia?
“The total outstanding stock of mortgages in 2019 grew to $1.82 trillion overall, an increase of 3.7 per cent,” Deloitte partner James Hickey told an exclusive industry roundtable in Sydney on Friday, reported BankingDay.
“This was the lowest rate of mortgage lending growth in Australia in the past decade.”
Banks and other lenders are competing hard on price and features right now to grab good borrowers. Borrowers with low deposits can also get approved for home loans in 2020. You can compare home loans at InfoChoice.com.au.
Compare home loans at InfoChoice.
Which lenders are most popular in Australia now?
Commonwealth Bank is the biggest lender of mortgages in Australia with about 25% of the total market. Westpac, NAB and ANZ are the next three big home loan lenders in Australia.
Macquarie Bank‘s latest results showed an 11 per cent increase in home loan sales over the previous quart.
“They've done that through a combination of investments in technology, consistent application of policy, fast turnarounds and a focus on the broker market,” said Deloitte partner Heather Baister .
Nathan Walsh, founder of neobank Athena, told Banking Day that Athena has written more than a billion dollars of home loans over our first 12 months.
Borrowers are comparing and moving away from the big banks
The big four banks in Australia are the most popular home lenders for most Australians. Between Commonwealth Bank, Westpac, NAB, ANZ and their subsidiary brands these lenders manage about three quarters (75%) of all Australian home loans.
But more lenders are winning over Aussie borrowers with low rates, low fees and online applications.
Lisa Nelson from Equifax, said Comprehensive Credit Reporting data showed the four big banks lost 4 per cent of market share between February 2018 to September 2019.
“Fintechs are on the rise, regional lenders are up 1.5 per cent and international banks are up nearly 3 per cent.”
Which lenders are cheaper than Commonwealth Bank, Westpac, NAB and ANZ?
Which home loan lenders have lower rates than the big four banks? The big four banks are the most popular lenders in Australia and have competitive rates across their full suite of loans. But increasing numbers of borrowers are finding better rates and deals elsewhere. Regional lenders and online lenders are offering low rates that can’t be ignored.
Right now, UBank’s Discount Offer (variable) for Owner Occupied (P&I, >$200K) is charging 2.84 per cent pa (comparison rate 2.84% pa).
Well Home Loans’ Well Balanced LVR up to 80% home loan has a current rate of 2.72% pa (comparison rate 2.75% pa).
Read more about cheap lenders at InfoChoice.
First Review of Klarna is at InfoChoice
Klarna has been launched and is now available in Australia. Klarna links to almost any transaction bank account and lets you shop and pay for items in four interest-free instalments.
Like Afterpay, Zip, Openpay, LatitudePay and other buy now pay later apps, Klarna aims to provide an interest-free alternative to credit cards.
Klarna is already one of the world’s biggest payments and shopping apps with more than 85 million customers in Europe.
Read InfoChoice’s First Review of Klarna.
Read our comparison of Afterpay vs Credit cards.
More banks cut home loan rates
South Australia’s low rate lender for low income borrowers, HomeStar, has cut variable home loan rates on its Star Essentials owner Occupier home loan to 2.74 per cent pa (comparison rate 2.71 per cent pa).
Other lenders to move rates in the last week include mortgage broker specialist Gateway Bank and G&C Mutual Bank.
Auction Results for 15 February 2020
Increasing volumes of auctions held did not lower clearance rates in capital city auctions according to preliminary auction results from Domain.
Sydney Auction Results for Saturday 15 February 2020
There were 506 residential property auctions held in Sydney on Saturday 15 February 2020. 84 per cent produced a sale for a median sale price of $1,205,000 in preliminary results reported by Domain.
Melbourne Auction Results for Saturday 15 February 2020
There were 649 residential property auctions held in Melbourne on Saturday 15 February 2020. 77 per cent produced a sale for a median sale price of $827,000 in preliminary results reported by Domain.
Adelaide Auction Results for Saturday 15 February 2020
There were 53 residential property auctions held in Adelaide on Saturday 15 February 2020. 76 per cent produced a sale for a median sale price of $525,000 in preliminary results reported by Domain.
Brisbane Auction Results for Saturday 15 February 2020
There were 81 residential property auctions held in Brisbane on Saturday 15 February 2020. 64 per cent produced a sale in preliminary results reported by Domain.
Canberra Auction Results for Saturday 15 February 2020
There were 41 residential property auctions held in Canberra on Saturday 15 February 2020. 90 per cent produced a sale for a median sale price of $833,500 in preliminary results reported by Domain.
Keep up to date with the latest property market outlook at InfoChoice.