How criminals steal your identity to steal your money

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Scams involving identity theft have cost Australians at least $16 million this year, and that figure is likely to be just the “tip of the iceberg”, says the Australian Competition and Consumer Commission (ACCC).

Worryingly, four in every 10 Scamwatch reports so far in 2019 have involved an attempt to gain information or the actual loss of a victim’s information.

“If you think scammers might have gained access to your personal information, even in a scam completely unrelated to your finances, immediately contact your bank,” says ACCC deputy chair Delia Rickard.

“Timeliness in alerting your financial institution is absolutely crucial.”

Identity thieves can empty victims’ bank accounts, take out tens of thousands of dollars in bank loans under victims’ names, and purchase expensive furniture or electronics under ‘no-repayments for 12 months’ schemes.

“Identity thieves can make victims’ lives a nightmare. They’ll change the victims’ phone carrier so they lose service and set up mail redirections so they’re in the dark about what’s going on,” says Ms Rickard.

You might not even know until you apply for finance

Here’s the really scary bit, though.

You might not even know you’ve fallen victim to identity theft until the day you have difficulty obtaining finance due to an inexplicably bad credit rating, points out ASIC.

This is why it’s important to regularly check your credit report, which you can do for free every year via MyCreditFile.com.au (Equifax) or CheckYourCredit.com.au (illion).

ASIC says if you’re a victim of identity theft you should tell the credit reporting agencies so they can note it in your file.

“Check your credit report to see what companies have checked your credit history recently, and let them know not to authorise any new accounts in your name,” ASIC adds.

You can also consider placing a temporary ban on your credit report to give you time to report the matter to police, and then send the police report to the credit agencies.

While the freeze is in place (initially 21 days, but it can be extended), the credit reporting agencies cannot share your credit report with credit providers without your consent.

If you can prove you weren’t responsible for the fraudulent transactions then you’ll hopefully be able to get your credit score fixed.

How people fall victim to identity theft

Some of the common ways that scammers obtain personal or banking information include:

– phishing emails and text messages which impersonate banks or utility providers seeking your login details
– fake online quizzes and surveys
– fake job advertisements
– remote access scams in which the scammer has direct access to everything on your computer
– sourcing information about you from social media platforms
– direct requests for scans of your driver’s license or passport, often in the course of a dating and romance scam.

“No one is really selling an iPhone for $1, or rewarding the completion of a survey with expensive electronic goods or large gift vouchers. They’re scams to get your valuable personal information,” says Ms Rickard.

If you’ve fallen victim to identity theft

Be alert to the signs of identity theft, says Ms Rickard.

“If your mobile phone suddenly loses coverage, you haven’t received expected electronic or physical mail, or you receive unexpected notifications from a financial institution, call your bank,” she says.

If you have been the victim of identity theft, contact IDCARE on 1300 432 273. IDCARE can guide you through the steps to reclaim your identity.

People can also report a scam to the ACCC via Scamwatch.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute 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.

Have your smashed avo and eat it too!

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One of the most annoying myths for young homebuyers has to be the smashed avo breaky one. You know – to buy a property you have to forego delicious weekend breakfasts. Well, here are three easy recipes that prove otherwise.

Today we’re going to have a little fun and trade in our finance professional cap for a chef’s hat.

Why? Well you see, there’s this pesky little lie about buying a home that just won’t go away.

It’s the one where some self-proclaimed property expert condescendingly tells Millennials that all they need to do to afford a property is give up luxuries such as smashed avocado for breakfast.

Well, to quote celebrity chef Gordon Ramsay… actually, it’s probably best we don’t quote Gordon in this instance.

Instead, here are three gourmet breakfasts you can whip up at home for no more than $15 for four people.

1. Smashed avocado and feta on toasted rye

Let’s start with the obvious one. Sure, smashed avocado is going to cost about $15-$20 per person in a hipster cafe, and that won’t exactly break the bank if you do it every now and then.

But it also happens to be one of the easiest, quickest and cheapest breakies you can make at home. And it takes just minutes.

This Taste.com.au recipe simply requires:

– two avocados – smash it! ($4)
– 80g creamy feta – mix it! ($2.50)
– half a loaf of rye bread – toast it! ($2)
– 2 tablespoons chopped fresh mint or dill – garnish it! ($2)
– 1 lemon/lime – drizzle it! ($1)

Total price = $11.50 (price proportional to ingredients used in each item purchase).

Plating-up is straight-forward enough, but if you’d like to follow a step-by-step guide, click on the recipe link above, or check out this BBC version.

To jazz it up even further, feel free to add a thin slice of smoked salmon, a poached or half-boiled egg, or some crunchy bacon.

2. French crepes

Weekend breaky doesn’t get much simpler, or more fun, than flippin’ French crepes.

Seriously. You’ll be surprised just how easy, tasty and cheap this meal is (as long as you have a non-stick frypan).

The best bit? Taking turns to flip the crepes makes for great entertainment too. Especially when someone drops one!

This Taste.com.au recipe requires the following ingredients to feed four to six people.

– 2 cups of plain flour ($1)
– 2-3 cups of milk ($1)
– 4 eggs ($3)
– pinch of white sugar
– Filling/s of your choice $5-$10

Total price = $9 to $14

Once you’ve whisked or blended all the ingredients together (minus the fillings, obviously), let the batter rest for 20-30 minutes to get the texture just right.

Warm the non-stick frypan to medium heat, melt some butter across it, then thinly coat the pan with the crepe mix.

After a minute or two, use a spatula to see if the bottom of the crepe has turned golden. If so, ensure it’s loosened off the pan with the spatula and then let rip with a flip!

When the other side is also golden serve the crepe on a plate, smother it with a delicious filling, and then roll or fold in triangles ready to eat.

Popular fillings include lemon drizzle and caster sugar, jam, honey, and Nutella and ice cream. But the possibilities are endless!

3. Shakshuka (aka poached eggs in spicy tomato sauce)

Ok, so this dish will be slightly more complicated to put together, so we won’t run through the whole process in this article.

Instead, here are a number of recipes you can follow, including from the New York Times, Taste.com.au, The Guardian and the ABC’s Poh’s Kitchen.

Now, this is traditionally a vegetarian dish so, provided you have most of the required spices in your cupboard, it shouldn’t cost more than $12-$15 to create.

But, if you want to go a little rogue, then feel free to add in some diced bacon, chorizo, minced lamb or pork sausage.

Get in touch

With all the above dishes costing less than $15, it’s safe to say you’re not going to need us to help you finance them!

But, if you’re looking at buying a property and want help lining up finance for that, well, you know exactly where to find us – in our office on weekdays, and cooking up a breaky storm on the weekends!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute 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.

Housing affordability the best it’s been since 1999: HIA

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Great news for home buyers – housing affordability is the best it’s been since 1999, according to new data released by the nation’s peak housing and building body.

That’s right – housing affordability is comparable to the days when the Y2K bug had us fearing for our lives, Nokia Snake was the pinnacle of mobile gaming, and median house prices in Australia ranged between $112,000 (Hobart) to $272,000 (Sydney).

These days, however, median prices range from $420,000 (Hobart) to $840,000 (Sydney).

But here’s where it gets a little interesting.

For a home buyer with an average income purchasing a median-priced dwelling (assuming a 10% deposit), mortgage repayments will consume the smallest proportion of their earnings since 1999, according to the Housing Industry Association (HIA) Affordability Index.

Hang on, how is this possible?

The main reason housing affordability is comparable with levels seen in 1999, despite house prices rising significantly faster than incomes over the last 20 years, is that interest rates are (in the vicinity of) 4.6% today compared with 6.7% in 1999, says HIA senior economist Geordan Murray.

Average earnings have also increased by 113% over the past 20 years.

While the median home price has increased by 228%, the lower interest rates have kept the cost of servicing a loan the same, points out Murray.

“The combination of lower home prices, improvements in wage growth and lower interest rates have contributed to the ongoing improvement in the HIA Affordability Index for the June 2019 quarter,” adds Murray.

What does the HIA Affordability Index measure?

HIA’s Affordability Index is calculated for each of the eight capital cities and regional areas on a quarterly basis and takes into account the latest dwelling prices, mortgage interest rates and wage developments.

All eight capital cities saw an improvement in the affordability index over the quarter to June 2019, with Darwin seeing the greatest improvement with its index up by 4.8%.

This was followed by Melbourne (+3.0%), Perth (+2.6%), Brisbane (+2.6%), Sydney (+2.4%), Canberra (+2.4%), Hobart (+ 2.2%) and Adelaide (+1.0%).

It gets even better

There are a number of recent initiatives that are not reflected in HIA’s Affordability Index but are nonetheless providing further benefit to purchasers, HIA points out.

There’s the reduction in income tax, the easing of APRA restrictions on mortgage lending, and the Australian government’s First Home Loan Deposit Scheme.

“The passing of the federal government’s income tax package means that millions of Australians will have extra income to put towards a deposit for a new home,” says HIA managing director Graham Wolfe.

Get in touch

If you’d like to take advantage of the current housing affordability conditions, then get in touch.

We can help arrange a home loan that’ll put a smile on your face and get you partying like it’s 1999.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute 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.

RBA goes back-to-back with cash rate cuts

The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to a new record low of 1%. Yep, that’s right, back-to-back rate cuts within just one month.

The RBA last cut the official cash rate to the previously historic low of 1.25% on June 4, which also happened to be the first rate cut in almost three years (since August 2016).

Why the RBA has made back-to-back cuts

RBA Governor Philip Lowe says this second rate cut in as many meetings was made to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target.

“The outlook for the global economy remains reasonable. However, the uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy are tilted to the downside,” he says.

Lowe adds that while conditions in most housing markets remain soft, there are some tentative signs that prices are now stabilising in Sydney and Melbourne. Growth in housing credit has also stabilised recently.

“Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target,” Lowe says.

Want to know what this rate cut means for your home loan?

On the back of this RBA decision, you may see a number of lenders advertising interest rate cuts.

You’ll also probably hear a lot of talk about whether lenders will pass on the full cut, a partial cut, or not at all.

Now, with two RBA cuts so close together, it might get a bit confusing as to whether lenders have passed on this rate cut, or only the one before it.

The good news is we’re following the market closely and can tell which lenders are passing this second rate cut on to their customers in full, and which lenders aren’t.

So if you’d like to find out, then please get in touch – we’d love to help break it down for you.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute 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 to find a bank with strong corporate social responsibility

Yes, we’re well aware that this may sound like an oxymoron to some! But cheeky jokes aside, this is a question we’ve been increasingly receiving. So today we thought we’d look into what good corporate social responsibility means, and how you can find it in a bank.

What do you look for when pairing with a bank?

An attractive rate? Convenience? Low fees? High transparency?

What about good corporate social responsibility?

In the wake of the Banking Royal Commission, it’s a question we’re seeing pop up more and more.

In fact, even before the royal commission a report found that 4 in 5 Australians would consider moving their investments to another provider if their current provider engaged in activities not consistent with their values.

So, as property is likely one of your biggest investments, today we thought we’d take a look at what exactly corporate social responsibility means and how you can find out if your bank embraces it.

What is corporate social responsibility?

Corporate Social Responsibility (CSR) is generally understood to mean that corporations have a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications, according to the Australian Human Right’s Commission.

Some lenders sponsor rescue helicopters, many provide community grants, while others throw their support behind social causes.

If you’d like to know what type of CSR work your bank does, simply google your bank’s name + CSR. The more recent the result the better, especially in the wake of the banking royal commission.

That said, as Dr Stephanie Schleimer from the Griffith Business School points out to the ABC, “CSR reports are not meant to be glossy brochures that look like advertising.”

In other words: it’s one thing for banks to make a snazzy list of their CSR activities, it’s entirely another for them to make a meaningful impact.

So how do I find a bank with strong CSR principles?

Well, you see, if you google “banks ranked corporate social responsibility” you’ll find…

Huh, not much. Basically banks tooting their own horn in their own reports.

Not to worry.

Maybe, if you try googling “best bank CSR” you’ll find… Nevermind…

You see, this is where it gets a bit tricky.

What you consider ethical, or to be a bank displaying strong CSR principles, will be completely different from the next person.

It’s a bit of a case of horses for courses, if you will.

Hmmm. So are there any other ways to identify strong CSR lenders?

Absolutely! Come and have a chat with us.

Everyone’s ethical compass points a slightly different way, so we can give you a pretty good idea of lenders on our panel that are making efforts in the areas of CSR that you may identify with.

It’s definitely a topic we’re seeing come up more frequently, so rest assured we’re watching this space closely.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute 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.