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Aussies warned of changes that impact their finances in 2020

Aussies warned of changes that impact their finances in 2020

There are many changes coming in the year 2020 that will impact the finances of Australians nationwide if they’re unaware of them, according to Finder.

From rate cuts to health insurance hikes, here’s what you need to know in 2020.

New rock-bottom cash rate in February

Further cash rate cuts are coming in 2020, as 66 per cent of Finder’s RBA panellists predicted another cut in February.

This means that Australia’s official cash rate would plummet to just 0.50 per cent.

“Record-low interest rates mean that homeowners will be able to save a significant amount of money over the life of their loan as well,” explained Kate Browne, personal finance expert at Finder.
“With over a million mortgage customers considering a switch this year, it will be interesting to see which lenders pass on the rate cuts, ” she said. 

Open banking

Open banking means that the Big Four banks, which are Commonwealth Bank, NAB, ANZ and Westpac, are required to provide access to customer and account data.

They are required to provide access to data for credit and debit cards, deposit accounts and transaction accounts.

This means that Australians are able to share their personal transaction data to get a better deal.

Health insurance price hike

Health insurance premiums are set to rise again this year and are looking to increase by 2.92 per cent on average from April 1st. However, this percentage is not set in stone and will vary across the funds.

Browne said that comparisons against funds should be done every year so you can stay on top of price hikes.

“Compare your premium every year and switch to a fund that won’t cost more. If you switch a policy with the same level of cover as your current one, you won’t need to reserve waiting periods,” Browne said.