Money news that affects your hip pocket this Wednesday.
Australian mortgage holders could soon face higher charges on their repayments despite record low interest rates as a result of Prime Minister Malcolm Turnbull’s narrow victory in the federal election, according to Bloomberg.
Bank funding costs have now increased in the wake of the election result, and will almost certainly be passed onto customers. It follows a decision by S&P Global Ratings to cut its outlook on Australia’s AAA credit rating to negative on concern about the new government’s ability to pay down its debt.
AAA is the prized rating for global governments because it makes the cost of obtaining international funds cheaper given it represents the unlikelihood of a government defaulting on its debt. The lower that rating goes the higher it costs banks to borrow in international markets.
See more: Ratings downgrade impact on mortgages
Coles is upped the ante on its supermarket rivals by cutting the prices of some 145 private-label products by as much as 25 per cent.
See more: Coles discounts
You soon won’t have to face those pay-day loan ads every time you search for financial tips through Google.
The search engine giant will today ban ads for short-term loans that are less than 60-days in length in a bid to help protect consumers from “deceptive or harmful financial products” according to Fairfax Media.
See more: Google and pay-day loans