Author: Comparable

Keep calm and carry on: 5 ways you can absorb interest rate rises

by Comparable | | Leave a Comment on Keep calm and carry on: 5 ways you can absorb interest rate rises
We’ve seen interest rates bounce back up over the past three months, and most economists are predicting more increases to come. If you’re starting to worry about your finances, rest assured there are several steps you can take now to get on the front foot. The days of ultra-low interest rates are officially over (it was nice while it lasted!). And while all the talk of doom and gloom you see in the media about rapidly rising interest rates can be a bit spooky, now’s not the time to panic. Check out this Reserve Bank of Australia (RBA) graph here, for example. It shows interest rates are currently lower (as of July 2022) than they ever were prior to May 2019. So the current cash rate is nothing extraordinary – although it might come as a shock to newer borrowers, as we previously hadn’t had a cash rate hike since November 2010. Still, there’s no denying that some households are starting to feel the squeeze, and if you put yourself in that category, now’s the time to consider implementing one or more of the below measures.

1. Start building up a buffer

There are no two ways about it – interest rates will go up over the next few months. Currently, the RBA cash rate is at 1.35%. Economists from the big four banks are predicting it could increase to anywhere between 2.60% (Commbank) and 3.35% (ANZ) by November. That means it’s important to start planning ahead now, if you can, by building up a buffer. This usually includes putting extra money into an offset account, redraw facility, or savings account – usually a facility that’s attached to your mortgage or easy to access.

2. Reduce expenses

Stan, Netflix, Spotify, Amazon, Audible, Apple TV, Disney, Paramount+, Kayo, Binge … the list goes on. How much do you spend on subscriptions each month? While they helped us get through lockdowns, these subscription services (that you might have forgotten to cancel) could be costing you a lot more than you realise. In fact, the average Australian household spends $55/month on entertainment subscriptions. Next on the hit list: takeaway coffees. Six takeaway coffees a week costs about $27, which is about $120 a month, or $240 per couple. Instead, you can brew your own (barista-quality) coffee at home for $30-$70 a month. Then there’s Uber Eats, Menulog, DoorDash, Deliveroo – sure, takeaway dinner is great every now and then, but if you’re making a habit of it then it’ll really start to add up. And the best part about home-cooked meals is the leftovers for lunch the next day – that’s two meals for the price of one.

3. Shop around

A recent Choice study found Aldi to be the cheapest grocery store. So that’s a start when it comes to your weekly food bill (which is also going up each month thanks to inflation). Failing that, this ING survey found the average Australian family saves $114 a month simply by doing their grocery shopping online (must be because you spend less time in the choccy aisle, and more time buying just the essentials!) But it’s not just your groceries that you can shop around for a lower price on. Car insurance, home insurance, utilities, your phone bill, and your internet bill are other monthly expenses you can usually find a better deal on.

4. Refinance

While we’re on the subject of shopping around, it goes without saying that if you haven’t refinanced for a while, there’s a decent chance you could get a better rate on your home loan. But why refinance now if interest rates will just keep rising anyway? ⁣ Well, let’s say you refinance your variable rate home loan this month from 3.50% down to 3%. ⁣ If the RBA raises the cash rate by 0.50% next month, and your bank follows suit, your interest rate will then be 3.50%. ⁣ ⁣ But if you choose not to refinance (and your bank follows the RBA’s lead) it’ll be 4%. ⁣ This 0.5% gap would remain for all subsequent upcoming interest rate rises – so long as the banks increase their interest rates in lockstep with the RBA.⁣ Another option you can consider is consolidating multiple loans – such as a car or personal loan – into your mortgage to reduce your monthly expenses. Now, it’s important to note that if you do this you’ll pay more in interest on the car and/or personal loan over the lifetime of those loans, but if you need cash flow now, this could be a possible solution. Similarly, you can also consider refinancing to extend the term of your mortgage, which could help reduce your monthly repayments. Once again, you’ll end up paying more interest over the life of your loan with this option, but it can give you more breathing space if you need it.

5. Come and speak to us

Last but not least, if you’re concerned about what’s going on with interest rates, inflation and/or how you’ll meet your home loan repayments, please don’t hesitate to get in touch with us. Everybody’s situation is different. And we understand many of the ideas we’ve listed above might not suit your financial and personal situation. So if you’re worried about how you’ll meet your repayments in the months ahead, give us a call today. We’d love to sit down with you and help you work out a plan moving forward. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How Does Switching Energy Suppliers Work?

by Comparable | | Leave a Comment on How Does Switching Energy Suppliers Work?

If you have shopped around and made the decision to switch your energy supply retailer, you might be wondering what the process is like when the time comes to actually make the switch. Switching supplies can be relatively easy,and is regulated to protect you.

Here’s how switching your energy supplier typically works in Australia:

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First Find the Right Energy Supplier

The process to switch your energy supplier might depend on the ways that you found your new
supplier. For example, one common way to switch an energy retailer is by using an energy plan
comparison site like Comparabill to compare the energy prices, features and benefits provided
by the energy retailers that service your area.


If you compare through a site like Comparabill, you can easily swap energy suppliers through
the platform itself. This means that you don’t need to call your current energy retailer to cancel
or the new retailer to set up your account. Once you agree to go with a new supplier through the
Comparabill website, you will enjoy energy savings and everyday household savings from
value-added rewards offered by Comparabill. Comparabill manages the switch on your behalf.

What to Expect When Switching Energy Supplier

The good thing is that there is not much that you need to do when switching your energy retailer.

Once you decide to switch via Comparabill, the process is follows:

  • Comparabill alert your new retailer of your consent to switch your energy supply to them.
  • Your new energy retailer will send you out a welcome pack in 3-4 business days. You have not switched at this stage.
  • The welcome pack contains rates, discounts, terms and conditions, and payment options from your new retailer.
  • Once the welcome arrives, you have a 10 business day cooling off period to read through all the details in the welcome pack.
  • At the end of the 10 day cooling off period, the energy distributor in your area will facilitate the switch to your new retailer. After one last meter read, you will receive one last bill from your current retailer, and the next bill will come from your new retailer.
  • All you need to do is read the welcome pack, the rest happens automatically. You do not need to contact your current retailer. It’s quite painless for you.

Fees Associated With Switching Energy Suppliers

If you are moving to a new premises, there may be a disconnection fee associated with leaving
your current premises, and a connection fee associated with connecting power to your new
premises.


Be sure to inquire about these fees before you make the transition; although, the energy bill
comparison site that you use might display this information as well. Confirm that the correct
amount was charged on each bill.

How Long Does it Take to Switch Energy Providers?

Once you have agreed to a contract or plan with a new energy provider, they will begin the
process of switching over your energy supply. However, the energy supply is not simply
swapped over at that time.


As per the process outlined above, it is reasonable to assume that switching energy providers
takes about 6 weeks until the process is complete. Now it is possible to expedite this transfer,
but this would require that a technician goes out for a special metre read and you would
probably have to pay for this. Not all retailers offer this expedited process.

Switching Your Energy Provider Today

The process to switch your energy provider is simple and painless. With an energy bill comparison site like Comparabill, you will be provided with an accurate estimate of the cost savings from switching to a new energy retailer. In addition to this, consumers who shop through Comparabill are able to reap additional value-added services! Reap additional savings through discounts on car insurance, restaurants, shopping, daily items, and much more.

How to Compare Energy Plans in Australia

by Comparable | | Leave a Comment on How to Compare Energy Plans in Australia

When you are staring at an expensive energy bill, it can feel like you are locked into a contract that you never signed. However, the majority of residential energy contracts give you the freedom to leave without any exit fees.

With an energy comparison site, you can find an energy retailer that meets your unique needs. You might choose your retailer based on varying features. It could be price, it could be value added rewards. It could be green energy sourcing. It could be the location of the energy retailer customer service team.

Compare energy retailers and identify savings in bill costs, fees, and value-added savings. Shop for energy plans to see the type of savings possible, whether it is through average annual savings or value-added rewards programs. These sites also identify unique features that a company might provide, such as carbon-neutral, green energy, Australian customer service, or an account management app.

If you’d like to switch your energy plan or you want to learn how a switch may benefit you, then consider comparing your energy plan to find the best energy company for your needs. Here are our recommendations on how to compare energy plans in Australia.

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Why Should You Compare Energy Plans?

Whether you are comfortable or dissatisfied with your energy company, it makes sense to shop around. Since the introduction of government reference pricing in July 2019 by the Australian government, the energy industry in Australia has been through many regulatory changes. Theaim of the changes was to ensure that energy price controls were introduced ,to protect you asthe consumer. However, with these changes, many people are still paying too much for their power.

It is good practice to shop around to see the types of pricing plans, contractual options, and value-added rewards available. This is simply good consumer education; by shopping around and asking the right questions, you become more aware of what you are paying for and what your energy retailer’s competitors offer. This can be incredibly powerful as a consumer. Take control and be proud of your decision!

There are a number of energy plans available that deliver rate savings and offer value-added rewards, green energy, award-winning customer service, and much more!

Plan Comparison Checklist

When shopping around for an energy plan in Australia, you want to prepare with a plan comparison checklist.

A checklist will highlight the features that you want in an energy provider:

  • Type of retail contract: Ensure you understand the market retail contract you are accepting. Find out what percentage that the energy pricing in your proposed new plan is below the government reference price (Victorian Default Offer in Victoria, and Direct Market Offer in NSW, QLD, SA).
  • Service options: Service providers have different options for billing frequency, payment options, and fees. Read the fine print and scan for things like credit card and paper bill fees.
  • Discounts and offers: Identifying discounts and offers from an energy provider or an energy bill comparison site can be very financially rewarding. With value-added services, you can actually save a lot more than the difference in the energy bill. Ensure you understand the net price per kwh after discount. Don't be seduced by the discount. The base price is important as well. The net price after discount is what determines your bill
    value.
  • Add-ons: In addition to showing you price discounts on the service contracts, some retailers will also offer value-added products like green energy, carbon neutral, vouchers, and associate rewards programs.
  • Features and benefits: Keep an eye for offers that come with key features like an account management dashboard or app so you can easily and efficiently manage your bills. They might even provide tips on minimising energy usage.

Since some of the lingo, processes, and plan details can be confusing, be proactive and educate yourself on what you want in an energy plan to simplify this process.

You may want to adjust your list as you go on. With the right questions in mind, you should be able to identify the features that you want in your energy plan. Then you can filter out certain items during your search and narrow in on the best fit service provider.

Things to Consider When Comparing Energy Plans

Energy plan comparisons are easy on a comparison site. All you need to do is plug your current annual or monthly bill price into an energy plan cost comparison calculator and the software will provide you with plan comparisons. Depending on the comparison site you use, you might only see certain features, benefits, and rewards. Not all comparison sites will provide you with all of the details of each company's offerings. Try to find a comparison site that can clearly present features like green energy, carbon neutral, or value-added rewards.

Compare Energy Plans

You don’t have to feel stuck in an energy plan. Comparing energy plans can help you
reevaluate your financial situation and provide additional savings with value-added services.

If you are thinking about changing your energy plan, find a reliable energy plan comparison service. An online service platform like Comparabill presents the average annual energy cost of energy retailers in your area.

Comparabill paints a clear savings picture to identify plan differences in fees, basic or annual charges, terms and conditions, add-ons, contract type, energy tariffs, benefits, and other features.

One of the biggest perks of comparing your energy plan with Comparabill is the value-added services. Through Comparabill, you can apply value-added discounts to your everyday expenses like entertainment, retail, and groceries. These rewards can provide additional household savings beyond energy savings.

Switch, save, and be proud of your decision.

How Value-Added Services Can Increase Your Energy Savings

by Comparable | | Leave a Comment on How Value-Added Services Can Increase Your Energy Savings

Mounting energy bills can be frustrating. If you have tried and failed to cut down your energy bills through increased energy efficiency, you might consider an alternate energy supplier. Changing your energy retailer, especially through a company that provides value-added services, can drastically increase your overall household savings.

Value-added services are discounts, rewards, and other benefit services that provide savings in addition to the savings delivered from an alternate energy supplier. Look for an energy comparison site that delivers these savings, in addition to finding savings for your energy bill.

If you, like most people, are interested in saving more money on your daily expenses, it makes sense to consider switching to an energy company that provides value-added services to increase energy savings.

[et_pb_video src="https://comparable.com.au/wp-content/uploads/2020/11/How_to_Compare_Energy_Plans_in_Australia.mp4" _builder_version="4.7.3" _module_preset="default" global_colors_info="{}"]

Value-Added Service Options

You may be wondering what value-added services actually are. As mentioned previously, value-added services are services (or products) that are provided by a company in addition to their main products or services. These services are so that the user can get a discount or benefit from a partner program. The user gets rewarded with other benefits, like discounts on everyday household expenses..

A very common example of value-added services is a rewards program. Rewards programs offer discounts, vouchers, or coupons on your everyday expenses. Categories include: fuel discounts, restaurants discounts, shopping discounts, entertainment discounts (like movie tickets), insurance discounts, and travel discounts.

For example, through a partnership with your energy company, you may be able to receive a discount of $0.05 per litre on your fuel. Or, if available, you may instead choose to receive a free ride with their local rideshare company.

Common Uses of Value-Added Services

The range of value-added services depends on the partnerships available with a given energy company.

If the energy company that you chose has a partnership with Kayo, you could get a free Kayo subscription in addition to your energy discounts. Value-added services might be applied to local restaurants, grocery stores, shopping centers, or utility companies.

Imagine a comparison site that calculates the energy and household savings from value added rewards for you! An energy comparison site like Comparable will calculate the estimated savings for both energy savings and household savings from rewards for you. If you input your average spending for groceries, rent, utilities, bills, and so on, Comparable will calculate your personal energy and household savings from switching to a preferred new energy retailer.

Using Value-Added Services to Increase Energy Savings

Considering a home and lifestyle budget, it can be nearly impossible to save money on essential items. You may consider shopping wholesale, shopping only when deals are offered, or buying on the sale rack. You maybe have considered and reconsidered your budget over and over again, but have continually failed to find ways to save money when it comes to normal spending and fixed expenses.

Luckily, value-added services like select discounts on services, products, and bills can drastically decrease the cost of your daily expenses. For example, if you can save an additional 15{b97b4616f461d16b27110a2dd6683df897a200d6ccd5c843189eab53e6144ef9} on car insurance every month, you are ultimately saving more by switching to an alternate energy provider.

Instead of paying upward of $2,000 annually on car insurance, this discount would save around $300 annually. With this extra $300 dollar savings, you would be able to use that money towards other purchases that you want or need.

How Value-Added Services Can Increase Your Energy Savings

By saving energy in other areas of your life, it is clear that value-added services offered by an energy company can increase your energy savings. You will be able to worry less about pinching pennies and be rewarded for switching to an energy company that makes sense for you.

With an energy comparison site, consumers can compare retail plans that best suit their needs while reaping additional value-added rewards.

See today how Comparable can increase your energy savings.

How to apply for a concession or rebate

by Comparable | | Leave a Comment on How to apply for a concession or rebate

You may be eligible for a concession or rebate if you hold a valid concession card or meet the eligibility criteria for a specific concession or rebate.

For more information on available concessions and rebates, select the relevant concession or rebate below.

New South Wales (NSW)

Card Type

  • Pensioner concession card
  • Health care card
  • Department of veterans affair card (DVA)

Rebate Amount

$285 (excl GST) / $313.50 (inc GST) per year or;

78.08 cents (excl GST) / 85.89 cents (inc GST) per day

 Eligibility

Please visit the Energy NSW for more information on eligibility.

Rebate Amount

This depends on the type of Life Support Machine you use.

Eligibility

People who use a Life Support machine due to a life-threatening condition. For more information on eligible Life support machines, visit the NSW Government Life Support web page.

Remember - It is important to advise us/energy retailer if your property requires Life Support even if your machine is not eligible for a concession.

Card Type

  • Pensioner Concession Card
  • Health Care Card
  • Department of Veterans Affair Card (DVA)

Eligibility

Please visit the NSW Medical Energy Rebate web page for more information on eligibility.

Rebate Amount

$285 (excl GST) / $313.50 (inc GST) per year

 

Eligibility

You're eligible for the Family Energy Rebate if you have received one of the following within the last financial year;

  • Family Tax Benefit A; or
  • Family Tax Benefit B.

For more information, head to the NSW Government Family Energy Rebate web page.

Rebate Amount

$180 per year for customer that do not hold a DHS Concession Card or Health Care Care; or,
$285 a year to eligible customers that hold a DHS Concession Card or Health Care Card and also qualify for the Low Income Household Rebate.

For more information on rebate amounts and eligibility, head to Service NSW.

 Application

You can apply using the online Family Energy Rebate Application form.

Eligibility

People experience difficulty paying their utility bills. for more information on eligibility , head to the NSW Government EAPA assistance web page.

 Rebate Amount

$50 vouchers / $55 (inc GST)

 Application

EAPA vouchers are provided by a range of community welfare organisations. To find out more, head to the NSW Government EAPA Assistance web page.

Queensland (QLD)

Card Type

  • Pensioner concession card
  • Health care card
  • Department of veterans affair card (DVA)
  • Queensland Seniors Card

Eligibility

Please visit the Queensland Government Concession web page for more information on eligibility

Rebate Amount

$309.86 (exc GST) / $340.85 (inc GST) per year or 84.89 cents (exc GST) / 93.38 cents (inc GST) per day

 

Eligibility

People who use an eligible Life Support machine provided by Medical Aids Subsidy Scheme (MASS) or QLD Health due to a medical condition, and:

  • Hold one of the following concession cards
  • Pensioner Concession card
  • Health Care card
  • Health Care Interim voucher
  • Child Disability allowance
  • Queensland Seniors card

For more information on eligible Life Support machines, visit the Queensland Government Life Support web page

Rebate Amount

This depends on the type of Life Support machine that you use.

Payments will be made on or around the 1st of the following months:

  • January, April, July, October of each year by electronic funds into a customers nominated bank account.
  • Applications lodged less than 21 business days before the payment date will be paid on the next payment run date.

For more information on rebate amounts and applications, please visit the Queensland Government Life Support web page.

Application

For more information on Life Support concession applications, please visit the Queensland Government Life Support web page.

Remember! It is important to advise us/retailer if your property requires Life Support equipment even if your machine is not eligible for a concession.

Eligibility

In order to receive the Medical Cooling Concession, a customer must:

  • Be a Queensland resident
  • Have a qualified Medical condition and needs cooling / heating to help stop the symptoms from becoming significantly worse
  • Live at their primary place of residence, which has an air conditioning or heating unit
  • Hold a Pensioner Concession card or a Health Care card and be financially responsible for paying the electricity bills / the primary account holder

Rebate amount

$340.85 (inc GST) per year

For more information on the Medical Cooling and Heating Concession Scheme, visit the Queensland Government web page.

Application

You can register your concession card by downloading a Medical Energy Rebate form here and submitting it to:

 Concession Services

Smart Service Queensland

PO Box 10817

Brisbane Adelaide Street Qld 4000

Eligibility

The Home Energy Emergency Assistance Scheme is for Queensland households experiencing problems paying their electricity or reticulated gas bills as a result of an unforeseen emergency or a short-term financial crisis and hold one of the following concession cards:

  • Health Care card
  • Pensioner Concession card 
  • Department of Veterans Affairs Gold Card (DVA)

For more information, visit the Queensland Government Home Energy Emergency Assistance Scheme web page.

Rebate amount

The payment is a one-off emergency assistance payment to help with paying your home energy bills and can be up to $720 once every 2 years.

 

Victoria (VIC)

Card Type

  • Pensioner Concession Card
  • Health Care Card 
  • Department of Veterans Affair Card (DVA)

Eligibility

Customers who hold an eligible concession card listed above 

Rebate Amount

17.5{b97b4616f461d16b27110a2dd6683df897a200d6ccd5c843189eab53e6144ef9} of electricity usage and supply costs. The concession is applied after any OVO Energy Interest reward credits and solar feed-in credits.

Application

For more information, visit the Department of Health and Human Services (DHHS) website

Eligibility

An Electricity account holder whos annual electricity costs are above $2,948 and who holds one of the following concession cards;

  • Pensioner Concession Card
  • Health Care Card
  • Department of Veterans Affair Card (DVA) 

Rebate amount

17.5{b97b4616f461d16b27110a2dd6683df897a200d6ccd5c843189eab53e6144ef9} of electricity usage and supply costs. The concession is applied after any OVO Energy Interest reward credits and solar feed-in credits.

Application
For more information, visit the Department of Health and Human Services (DHHS) website

Eligibility

An electricity account holder who hold an eligible concession card and has separately metered hot water or slab heating, measured by a dual element meter.

Rebate amount

13{b97b4616f461d16b27110a2dd6683df897a200d6ccd5c843189eab53e6144ef9} of the controlled load electricity usage costs. 

Application

For more information, visit the Department of Health and Human Services (DHHS) website

Eligibility

An Electricity account holder who hold an eligible concession card who have low usage charges. 

Card Type

  • Pensioner Concession Card
  • Health Care Card
  • Department of Veterans Affair Card (DVA) 

Rebate amount

If your usage charges on your bill are lower than your supply charges, the supply charge is reduced to the cost of your electricity usage costs 

Application

For more information, visit the Department of Health and Human Services (DHHS) website

Eligibility

An electricity account holder who hold an eligible concession card and use or have a household member who uses an eligible life support machine 

Card Type

  • Pensioner Concession Card
  • Health Care Card
  • Department of Veterans Affair Card (DVA) 

Rebate amount
The electricity rebate equals the cost of 1,880 kWh of electricity per annum and is calculated using the general domestic tariff of you retailer.

Application

1- Download and complete the Life Support Concession form.
2- Ask your medical practitioner to confirm the life support equipment and sign the application
3- Send your completed form to retailer directly.
For more information, visit the Department of Health and Human Services (DHHS) website

Eligibility

An electricity account holder who hold an eligible concession card and have a medical condition that affects their body's ability to self-regulate temperature or has a household member with such a medical condition.  

Card Type

  • Pensioner Concession Card
  • Health Care Card
  • Department of Veterans Affair Card (DVA) 

Rebate amount
17.5{b97b4616f461d16b27110a2dd6683df897a200d6ccd5c843189eab53e6144ef9} of electricity usage and supply charges between 1 November and 30 April

Application

1- Download and complete the Medical Cooling Concession form.
2- Ask your medical practitioner to confirm your medical condition and sign the application
3- Send your completed form to retailer directly
For more information, visit the Department of Health and Human Services (DHHS) website

Eligibility

An electricity account holder who hold an eligible concession card and are experiencing financial hardship and cant pay their overdue electricity account. 

You must also meet one of the following criteria:

  • You or someone within your household has experienced family violence 
  • A recent decrease in income or loss of work
  • Increase in unexpected costs for essential items
  • The cost of shelter is more than 30{b97b4616f461d16b27110a2dd6683df897a200d6ccd5c843189eab53e6144ef9} of your household items 

Rebate amount
up to $650 towards your electricity account or up to $1,300 for households with electricity only, every two years

 

South Australia (SA)

Card Type

  • Pensioner Concession Card
  • Department of Veterans Affair Card (DVA)
  • Totally and Permanently Incapacitated (TPI)
  • Extreme Disablement Adjustment (EDA)
  • War Widow / Low Income Health Care Card
  • Commonwealth Seniors Health Card

Eligibility

Customers on low income

Rebate Amount

$226.67 (exc GST) / $249.34(inc GST) per year or; 62.10 cents (exc GST) / 68.03 cents (inc GST) per day

Application

You can register your concession card visiting South Australian Government's Concessions webpage

Eligibility

In order to receive the Medical Cooling Concession, a customer must:

  • Live at the address on the application form
  • Have, or be the parent or legal guardian of, a child who has a qualifying medical condition requiring cooling or heating to prevent severe worsening of their condition
  • Provide certification from their medical specialist or general practitioner that the medical condition is severely worsened by hot or cold weather
  • Use an air conditioning unit at that address to meet their medical heating and cooling requirements
  • Be financially responsible for the full or part payment of the energy bill
  • Hold an eligible concession card or receive an eligible Centrelink payment

For more information on eligibility, visit the South Australian Government's webpage

Rebate amount

For more information on rebate amounts, visit the South Australian Government’s webpage

Application

You can register for the Medical heating and Cooling concession by downloading the rebate form here and emailing it to: concessions@sa.gov.au

Eligibility

  • Receive an energy concession; and,
  • Have had or at risk of having their electricity disconnected.

Rebate amount

A one-off payment of up to $440 (inc GST)

Application

You must visit a financial counsellor to assess your situation. For a list of the financial counsellors please visit the South Australian Government’s financial assistance website.

Could an eco reno boost your property’s value?

by Comparable | | Leave a Comment on Could an eco reno boost your property’s value?

You’ve probably heard that interest rates are on the rise and national property prices are on the way back down. Here’s how you can kill two birds with one stone: by refinancing to unlock equity and giving your home an energy-efficient makeover at the same time.

Did you know that energy-efficient homes generally attract premium prices and sell faster than non-eco listings?

That’s according to the 2022 Domain Sustainability in Property Report, which found an energy-efficient house in the median range sells for $125,000 more (+17.1%) on average than a non-sustainable house.

The results are quite good for apartment owners too, with energy-efficient units selling for $72,750 more (+12.7%) than non-energy-efficient apartments.

Dr Nicola Powell, Domain’s chief of research and economics, says more and more sellers are addressing the demand for eco-friendly homes, as online listings with popular eco features attract 8.7% more views on average.

“More than half of all for sale listings in all states and territories contain energy-efficient keywords,” she says.

Installations that are popular with potential buyers

Here are the top three eco features popular in house listing searches right now.

1. Solar power: Australia has no shortage of sunshine. And there’s no shortage of demand for houses with solar panels either. A 2020 Origin Energy survey showed 77% of Australians view houses with solar panels as being more valuable. And 55% of renters said they would consider paying increased rent for solar panels.

2. Water tanks: if you have a sizable garden or lawn, a sustainable irrigation system can help keep your water bill down. Make use of the rainy season by collecting water in tanks. When the dry season hits, you’ll be prepared with free, nutrient-dense rainwater to lavish on your garden.

3. Insulation and glazing: window glazing and insulation can help stop your heating and cooling efforts from leaching out. You’ll also reduce the summer heat and winter chill invading your home.

Financing your eco reno

Depending on your situation, many lenders now offer green loans to help homeowners install environmentally sound features – and the good news is that lenders usually offer lower interest rates on green loans in an effort to encourage sustainability.

Another option at your disposal is to unlock the equity in your home to fund your eco reno.

And it’s not a bad time to consider doing so, as property prices increased 23.7% in 2021.

So how does ‘unlocking equity’ work?

Well, let’s say you bought an $800,000 house three years ago that, due to last year’s property price surge, is now worth $1 million.

And let’s also say you took out a $600,000 loan for that house, which you’ve managed to pay down to $500,000 (hurrah!).

By refinancing that $500,000 loan into a $700,000 loan (70% of your property’s new market value), you can unlock $200,000 in equity to help fund a deposit for your renovations.

It’s also worth noting that banks will typically let you borrow up to 80% of a property’s market value.

And don’t forget to check out any government rebates that may be available for eco your installations.

Get in touch today

If all of this seems confusing, don’t fret! We’re more than happy to help you navigate loans, equity, and refinancing for your eco reno.

And if you decide to proceed, the good news is that part of the process can include refinancing your home loan.

Why’s that good news?

Well, just because interest rates are going up, doesn’t mean you can’t scope out a better deal on your mortgage. Competition amongst lenders remains fierce, particularly if you have a decent amount of equity and a strong track record of meeting your mortgage repayments.⁣

So if you’d like to discuss your reno and/or refinancing options, get in touch today.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Why you might want to refinance sooner rather than later

by Comparable | | Leave a Comment on Why you might want to refinance sooner rather than later

Thinking about refinancing? As interest rates rise, so do the hurdles you need to clear. Here’s why you might want to look at refinancing soon to avoid potentially missing out.

When was the last time you refinanced?

If the answer is “never”, or you can’t actually remember, there’s a good chance you’re paying a higher interest rate than you could be due to the “loyalty tax”.

You see, the banks don’t think you’re paying attention, and as such, they only offer their lowest rates to new customers in a bid to win them over – as proven by the RBA.

In fact, a recent RateCity analysis found that customers who stay loyal to their bank could be hit with an extra $5,101 in interest over the next three years alone (based on a $500,000 loan taken out with CBA in 2019).

For a $750,000 loan that would be an extra $7,652 in interest, and for a $1 million loan it’s $10,202 extra.

This is a big reason why owner-occupier refinancing across the country rose 9.7% in June to a new record high of $12.7 billion, according to the Australian Bureau of Statistics.

Great. But why is refinancing now so important?

Ok, so when you refinance, your new lender must assess something called your “home loan serviceability”.

Basically, that’s your ability to meet your home loan repayments at an interest rate that’s at least 3% above the rate you’re being offered.

And as you might have seen on the news, the big four banks are tipping the RBA’s official cash rate to increase from 1.85% in August to anywhere between 2.60% (Commbank forecast) and 3.35% (ANZ forecast) by November.

That means as interest rates go up, so too will the hurdle you’ll need to clear for home loan serviceability when refinancing.

All in all, that means the sooner you refinance, the lower the hurdle you’ll need to clear to ensure you’re not stuck with your current rate and lender.

How to explore your refinancing options

This is the easy bit! Simply get in touch today and we’ll help you get the ball rolling.

And even if you don’t want to refinance with another lender, there’s always the option of asking your current lender to review your rate, indicating that you’re prepared to refinance if they don’t come to the table.

After all, loyalty should be a two-way street!

So if you’d like to find out more about what options are available to you, give us a call or flick us an email today – we want to help you through the period ahead as much as we possibly can!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Interest rates to keep climbing as RBA hikes cash rate to 1.85%

by Comparable | | Leave a Comment on Interest rates to keep climbing as RBA hikes cash rate to 1.85%

The Reserve Bank of Australia (RBA) has increased the official cash rate by another 50 basis points to 1.85%. Here’s how to hang in there and keep up with all these monthly cash rate hikes.

Another month, another RBA cash rate hike – that’s four months in a row now!

It’s hard to believe that at the beginning of May the cash rate was just 0.10%. Today, it was increased to 1.85%.

RBA Governor Philip Lowe said in a statement that today’s increase was a further step in the normalisation of monetary conditions in Australia.

“The increase in interest rates over recent months has been required to bring inflation back to target and to create a more sustainable balance of demand and supply in the Australian economy,” said Governor Lowe.

“The (RBA) board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path.”

If you’re having a little trouble hanging in there, below is a condensed version of an article we put out last week to help you alleviate some pressure on the household budget.

1. Build up a buffer

There are no two ways about it – interest rates will only continue to climb in the months ahead.

That means it’s important to start planning ahead now, if you can, by building up a buffer.

This usually includes putting extra money into an offset account, redraw facility, or savings account – usually a facility that’s attached to your mortgage or easy to access.

2. Reduce expenses

Stan, Netflix, Spotify, Amazon, Audible, Apple TV, Disney, Paramount+, Kayo, Binge … how much do you spend on subscriptions each month? And how many can you cut out?

Next on the hit list: takeaway coffees. Six takeaway coffees a week costs you about $120 per month, or $240 per couple.

Instead, you can brew your own (barista-quality) coffee at home for $30-$70 a month.

And if you can, try to cut back on takeaway meals – they can really add up over time and home-cooked meals provide more leftovers for lunch the next day, too.

3. Shop around

A recent Choice study found Aldi to be the cheapest grocery store. Failing that, this ING survey found the average Australian family saves $114 a month simply by doing their grocery shopping online.

And don’t forget to look around for better deals on your car insurance, pet insurance (sorry Rex!), home insurance, utilities, your phone bill, and your internet bill.

4. Refinance

If you haven’t refinanced for a while, there’s a decent chance you could get a better rate on your home loan.

And you may want to get the ball rolling sooner rather than later.

That’s because lenders need to stress test your ability to meet your home loan repayments at an interest rate that’s at least 3% above the loan product rate you’re being offered.

So as interest rates go up, so too will the hurdle you’ll need to clear to pass that test (aka home loan serviceability).

Another option to consider is consolidating multiple loans – such as a car or personal loan – into your mortgage to reduce your monthly expenses.

Similarly, you can also consider refinancing to extend the term of your mortgage, which could help reduce your monthly repayments.

Both these options come with a downside, however, as by extending them you’ll pay more interest on the loan than you would’ve otherwise (ie. car loans are shorter than home loans).

But if you need cash flow now they can be an option to get you out of a jam.

5. Come and speak to us

Last but not least, if you’re concerned about what’s going on with interest rates, inflation and/or how you’ll meet your home loan repayments, please don’t hesitate to get in touch with us.

Everybody’s situation is different. And we understand many of the ideas we’ve listed above might not suit your financial and personal situation.

So if you’re worried about how you’ll meet your repayments in the months ahead, give us a call today. We’d love to sit down with you and help you work out a plan moving forward.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Renovate or invest? How 7-in-10 Aussies are using their equity

by Comparable | | Leave a Comment on Renovate or invest? How 7-in-10 Aussies are using their equity
Seven in 10 homeowners have recently used the equity in their home to renovate, invest in property or shares, or boost their superannuation. Have you thought about how you could take advantage of last year’s property price spike? You might have heard that property prices spiked 23.7% in 2021, yeah? That’s quite the growth spurt! So how do you take advantage of that growth without (or before) selling your home? Well, one way to do so is to cash out equity while property prices are high (which we’ll explain in a little more detail below). According to NAB research, three in 10 mortgage holders have recently done just that and have used the money to give their home a facelift by renovating. Other popular options include using unlocked equity to buy an investment property (16% of homeowners), invest in shares (12%) and boost super balances (8%).

So how does ‘cashing out equity’ work?

It might sound complicated – but we promise it’s not. Let’s say you bought an $800,000 house three years ago that, due to last year’s property price surge, is now worth $1 million. And let’s also say you took out a $600,000 loan for that house, which you’ve managed to pay down to $500,000 (you little beauty!). By refinancing that $500,000 loan into a $700,000 loan (70% of your property’s new market value), you can unlock $200,000 in equity to help fund a deposit for your renovations or to buy an investment property. It’s also worth noting that banks will typically let you borrow up to 80% of a property’s market value. So if you upped the ante and refinanced to an $800,000 loan, you’d be able to unlock $300,000 in equity.

Want to find out more about unlocking the equity in your home?

If it still all sounds a little confusing, don’t stress, we’d be more than happy to sit down with you and help you work out how much equity you can unlock. And if you decide to proceed, the good news is part of the process can include refinancing your home loan. Why’s that good news? Well, just because interest rates are going up, doesn’t mean you can’t scope out a better deal on your mortgage. Competition amongst lenders remains fierce, particularly if you have a decent amount of equity and a strong track record of meeting your mortgage repayments.⁣ So if you’d like to explore your options when it comes to unlocking the equity potential in your home, get in touch today – we’d love to help you crunch the numbers. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Single and under 30? You’re a great fit for the 5% deposit scheme

by Comparable | | Leave a Comment on Single and under 30? You’re a great fit for the 5% deposit scheme
Single Australians under 30 snare the lion’s share of spots in the federal government’s 5% deposit first home buyer scheme, according to new data. Here’s how to secure one of the highly coveted 35,000 scheme spots released on July 1. Long gone are the days when you had to scrimp and save for a 20% deposit to buy your first home (that’s so 2019). These days, you can crack the property market with just a 5% deposit and pay no lenders’ mortgage insurance (LMI), thanks to the federal government’s First Home Guarantee (FHG) scheme. NAB – which is one of two major lenders (alongside dozens of non-majors) that provides finance under the scheme – recently released some pretty insightful data on just who is jagging the limited spots each year. The data shows almost two-thirds of people (63%) who purchased a house under the scheme were single buyers – whereas for non-scheme purchases, single buyers only made up 49% of borrowers. Of the single people snapping up First Home Guarantee spots, 59% were female and 41% were male. Government data also shows that the median age of people using the scheme is 25 to 29 years old. “People going at it alone shouldn’t be disadvantaged and we are seeing the scheme help them buy a property,” says NAB Executive Home Ownership, Andy Kerr.

How the scheme helped one homebuyer purchase 4 years sooner

First home buyers who use the scheme fast-track their property purchase by 4 to 4.5 years on average, because they don’t have to save the standard 20% deposit. Better yet, not paying LMI can save you anywhere between $4,000 and $35,000, depending on the property price and your deposit amount. This is exactly what helped car salesman Rihan Nasser purchase his villa unit last August. Initially, Rihan had been crunching the numbers on what he’d need to do to save a 20% deposit, admitting “it would have taken him years”. “The scheme fast-tracked the process by maybe two, three or four years and made it easier to come up with the deposit to buy,” says Rihan. “Once I knew I needed 5%, I knuckled down on the saving. It took me about a year and a half. I would 100% recommend the scheme. It made it so much easier.”

How to get the ball rolling today

Ok, so here’s the catch: places in the First Home Guarantee scheme are generally allocated on a first-come, first-served basis. And don’t let this year’s expansion to 35,000 spots lull you into a sense of complacency – they’ll get snapped up fairly quickly. So if you’re a first home buyer looking to crack the property market sooner rather than later, get in touch today and we can explain the scheme to you in more detail, check if you’re eligible, and then help you apply through a participating lender. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.