Experts warn against resorting to buy now, pay later loans for essentials during lockdown

Experts warn against resorting to buy now, pay later loans for essentials during lockdown Experts warn against resorting to buy now, pay later loans for essentials during lockdown By David Taylor Experts warn that some Australians waiting on government support could be targeting by lenders.(ABC News: Kit Mochan)

Consumer advocates say some lenders are cashing in on those facing financial distress while under lockdown conditions.

Key points:

The Consumer Action Law Centre believes lenders are taking advantage of people still waiting on government support

Financial counsellor Peter Thompson says he has spoken to people turning to buy now, pay later lenders to pay for essentials

Afterpay says it has never enforced a debt nor sold debt to a collection agency

Financial counsellor Peter Thompson has been field…

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What homebuyers should look for when comparing home loans

What homebuyers should look for when comparing home loans as interest rates remain low

It’s a great time to buy property with record-low interest rates, but homebuyers are cautioned to avoid these mistakes when shopping for loans.

Kathy Skantzos

With unprecedented cuts to Aussie home loans and ultra-low interest rates, now could be the ideal time to buy, but buyers have been warned to shop around before committing to a mortgage.

Canstar’s group executive of financial services Steve Mickenbecker told news.com.au that homebuyers should not be getting a loan for anything around the 3 per cent mark or above. He said home loan rates are down at around 2 per cent – an ultimate low we haven’t seen before – and buyers shouldn’t be going any higher. “We’ve not seen a minimum anywhere around that. In 2015, the average interest rate was around 5 per cent and in 2020 the national average was 3.32 per cent. That’s…
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