Trending Financial News 27 February 2020
Editor’s Pick: Best Car Loan for March 2020.
The best car loans feature low comparison rates as well as reasonable fees and rules.
“Really low comparison rates, comparable to some home loan rates, are being offered now,” said Vadim Taube from InfoChoice.
NRMA’s FAST LOAN for New Car (Satisfaction Guaranteed) has a low rate of 5.69% pa (comparison rate 6.39% pa). NRMA promote approval within 5 business hours and have a quick online application process. Go directly to NRMA Car Loan interest rate and fees information at InfoChoice.
Read more about the best car loans at InfoChoice.
Shares falling on coronavirus fears
Investors are continuing to sell out of the Australian share market as coronavirus fears rattle world markets.
The ASX’s All Ordinaries index has lost 6 per cent over the last five trading days. Wall Street and markets in Asia and Europe are also down as the coronavirus spreads
However, the ASX All Ordinaries index is up by 2,000 points over the last five years, from a low point of under 5,000 points to well over 7,000 points now.
Commonwealth Bank loan insurance is “limited.”
Commonwealth Bank has announced a new initiative that will cover 12 months of mortgage repayment costs for home loan customers dealing with illness or death in the family.
Huy Truong, from insurance company ALI Group, welcomed CBA’s Home Loan Compassionate Care but drew attention to the “very limited” (one year) scope of the scheme.
“Most of our mortgage protection claims arise as a result of critical illness, where the claimant recovers but at a great financial cost,” said Mr Truong.
Am I in Mortgage Stress?
Plenty of Australian households are suffering mortgage stress right now according to economist Martin North from Digital Finance Analytics. More than 1 million households currently paying off a home loan have a negative monthly household cashflow. DFA suggests 83,400 Australian households could default on their home loan in 2020.
Cash Converters pays out cash to compensate customers
Cash Converters has reported a huge loss of $19.4 million loss for the six months to December 2019 after paying out $42 million to compensate customers following a legal class action.
It is the second year in a row that the company has recorded a loss due to class action payouts, reported BankingDay.com.
In December 2018 Cash Converters reported a loss of $5.2 million after paying out $16.4 million. In 2015 Cash Converters paid $20 million to settle a class action over fees and charges.
Are you looking for your bank’s home loan interest rates?
Do you know how to check your home loan interest rate and compare it with others in the market? Do you know what repayments you are making each month?
You can easily check on the interest rates and fees information, as well as the all the basic features on your loan, card or account at InfoChoice.
Find your bank or financial provider at InfoChoice and go directly to their rates and fess information on loans, cards and accounts.
Fire Insurance definition problems: What is a “FIRE?”
Consumer lobby group CHOICE has sent its CEO Alan Kirkland to Canberra to lobby politicians for changes to insurance contracts. Mr Kirkland delivered a petition to Treasurer Josh Frydenberg’s office with 35,000 signatures asking for standard definitions of fire in home insurance contracts.
“This is particularly important for people living in bushfire-affected communities,” said Alan Kirkland.
“The last thing somebody who has been through a bushfire needs to worry about is whether their insurance claim will be knocked back due to a tricky term or condition.”
The government needs to intervene to force the industry to adopt a standard definition of flood said Mr Kirkland, in a similar way to the 2012 intervention by government that forced insurers to adopt a standard definition of flood.
Owner Occupiers are driving the mortgage market
The value of new home loans sold to owner occupiers increased 5.1 per cent (seasonally adjusted) in December 2019 and was 17.9 per cent above the result from December 2018, reported the Australian Bureau of Statistics.
“The value increased in all states and territories except Tasmania,” said Adrian Kelly, President of the Real Estate Institute of Australia.
The value of new investment housing loan commitments, excluding refinancing, increased by 2.8 per cent in December and 4.9 per cent for the year.
Keep up to date with the latest outlook for the property market at InfoChoice.