Borrowing power has plunged over $260,000 for some Australian families, trapping many mortgagees that can’t qualify for better rates, and hampering house hunter hopefuls. Lenders have been far more cautious in an effort to offset the risk of recession and higher rates that could impact long-term serviceability. Fixed rate borrowers who have just had their… Read more »
Yes, rising interest rates stealthily reduce your borrowing capacity. Fortunately there are a few simple things you can do to increase it. I’ve talked about this a few times over the last couple of months. Not only do rising interest rates increase loan repayments, they also reduce your borrowing capacity because the so-called “serviceability test”… Read more »
Well, that was a wild week. Nothing like a US banking crisis to get the pulse racing. Financial markets hate uncertainty and they particularly hate panic around banks. The panic caused by the collapse of Lehmann Bros back in 2008, which sparked the Global Financial Crisis (GFC), is still fresh in many people’s minds and… Read more »
Compared to the rest of the market, the big four bank shares don’t perform well. A common theme among the experts I talk to on my share investment program The Call is their frustration in talking with clients who seem to marry their big four bank shares… they just won’t even talk about selling them.… Read more »
Existing bank home loan customers are being financially screwed like never before. But it’s up to you to fight with your bank. For example, if someone took out one of the big four banks’ lowest variable rates this time just last year they would now be on a rate that is, on average, 0.44 per… Read more »
Everyone wants to get the best possible interest rate from their bank. And this is the best home loan bargaining tool you’ll ever get. Okay, listen up if you have a home loan or know someone with a mortgage. I constantly encourage you to negotiate with your financier to get a better deal, to ask… Read more »
Aussie banks are wising up to new spending habits by offering no-interest credit cards. But do they stack up against BNPL offerings? The extortionate interest rates still being charged on most credit cards is outrageous. Australians are onto this rort and credit card usage and outstanding balances are plummeting. Another factor has been younger consumers… Read more »
It seems simple, but figuring out the best place to keep your money to boost your cashflow can be confusing. Financial planner Ben Nash shares some common sense advice. It’s common these days for people to have a bunch of bank accounts, loans, credit cards, and savings accounts. But keeping your money in the wrong… Read more »
There’s a revolution under way in commerce. Within five years, consumer data rights will have transformed competition and simplified the way we live. Yet most of us know little about it, or think it’s restricted to banking. It’s the brainchild of former Productivity Commission chief Peter Harris and Scott Morrison when he was treasurer. The Productivity… Read more »
Just when you thought the banks couldn’t get any stingier, they are. Savings interest rates have been reduced again. Australia’s biggest bank, Commonwealth Bank (CBA), has cut its savings rates by up to 0.07 per cent. The Reserve Bank hasn’t changed official interest rates since November last year, but the CBA (and the other big… Read more »
