Homeloans coming back into fashion

The recession. The Global crisis. The difficulty of getting a homeloan. Times have been tough for a young person trying to get into the housing market. Not long ago the banks would not give a homeloan without a large deposit. This is now changing. Both ABSA and Standard Bank are offering full 100% homeloans and even 100% plus homeloans. This is great news for anyone who wants to purchase a home. So how can you go about it

• Plan your budget
• Contact a homeloan specialist
• Choose the best value homeloan

If you want to buy yourself a house but have been waiting for the market to improve the lending criteria is getting better. This could signal that the banks are feeling more confident about the economic situation, as they are lowering the onerous requirements that were in place only a few months ago. Over the last eight years the housing market was booming and there was an abstraction of book value to real value. Meaning that the housing market went up faster than was realistic, leading to the market crashing out.

The market crashed, this was originally brought on by the subprime mortgage crisis in the US. The knock on effects crashed housing out across the world but a large correction was in order anyway. The banks want the homeloan market to take off again but what no-one knows is if the market has reached the bottom yet before it can start the cycle of growth again. This is where a homeloan specialist can help you get the best value homeloan you can afford and advise you on when and where the homeloan market is going.

Sunday Times Top Brands Awards 2009 highlights financial high fliers

Congratulations to all the winners of the Sunday Times Top Brands Awards, which were held in Johannesburg on 20 August 2009. A particular mention must go out to all the smaller brands that are receiving a well-deserved share of the limelight.

The results are based on a combination of face-to-face and telephonic interviews with 3500 adults and 400 business people. Here are the results from the financial categories:

Banking Awards
First National Bank claimed the top spot for Retail Banks in the business-to-consumer national category. Click here to browse through the stream of compliments submitted about FNB on the getclosure website. Well done to ABSA and Standard Bank who were placed second and third respectively in this category.

Impressively, the same three banks featured in the business-to-business category, with Standard Bank coming in first place, followed by FNB and then ABSA. So although South Africans love to hate banks, these three are obviously out-performing their competitors and are making a concerted effort to retain and satisfy their customers.

Insurance Awards
The array of insurance companies receiving awards was definitely larger than in the banking industry; with Old Mutual and Hollard, being the only two that featured more than once, so hats off to them both for their consistently high ratings.

In the business-to-consumer section the awards for long-term insurance went to Old Mutual, followed by Metropolitan Life and then Hollard; and in the business-to-business section the winner was Discovery Life, with Liberty in second place and Old Mutual in third.

For short-term insurance in the business-to-consumer category, Outsurance came out tops, followed by AA Insurance and Hollard; and in the business-to-business category Santam came in first, Mutual and Federal was second and Zurich Insurance claimed third place.

Medical Aid Awards
Congratulations to Discovery Health for winning first prize in the business-to-business Medical Aid awards. The runners up were Momentum and Fed Health.

For the Grand Prix categories of consumers' top brands, Coca-Cola won the Overall favourite brand award and Nelson Mandela won the South African personality award.
Pick ‘n Pay also did extremely well, winning two out of the four awards for the Company doing the most to uplift community and the Company that has done the most to promote "Green".

Says getclosure Director Patrick Deale, "The getclosure service is all about raising the standard of customer service in South Africa and helping businesses to protect and enhance their brands and retain their customers; so it's great to see companies being recognised for getting this right. It's also good to see how many businesses are taking customer service seriously and are receiving positive feedback from their customers".

Click here to read compliments about each of these suppliers on the getclosure website. You can also check out the getclosure five-star customer centricity ratings to see which businesses have been rated highly by South African consumers over the past six months.

Article by getclosure! - www.getclosure.co.za enables consumers to bring their complaints and compliments to the attention of South African suppliers. This independent service is fast, effective and free.

National Health Insurance to change Medical Aid

There is a constitutional obligation to provide access to health care for all. Currently in South Africa while there is a public health service, many people opt for privatised healthcare believing that they will get a better quality of care. This can be a very expensive thing. So we have developed a system of medical aids in South Africa to provide health insurance for private health care. There is now talk of a National Health Insurance (NHI) being set up. What will this change for your medical aid?

• Medical aids may offer less
• There will be more tax
• There will be cross over health care

The system that the government appears to be modelling on is the United Kingdom's NHS or National Health Service, which is currently under pressure. The fact is that the UK government charges a small part of tax called National Insurance or NI that provides comprehensive free health care. This kind of health care is what is called for by our constitution and is a method of keeping our population healthy and productive, however with the existence already of medical aid a new tax could lead to people paying twice for their health care.

While many will be unhappy about another tax, if we wish to be able to supply the labour market with healthy and able workers then we will need to provide more access to health care which at the moment is only really available at decent service levels to those who are able to afford medical aid. With an introduction of NHI there may be less call for private medical aids, with these providing only top-up services that are not covered by the national fund. If this national fund is managed correctly we could pay much less for our health insurance and get the same level of care as currently.

Medical aid under pressure

The registrar of the Council for Medical Schemes reported to Parliament and told them that medical aid schemes are coming under pressure. 18 out of 119 medical aid schemes have fallen below the minimum level of solvency they need. They may have to amalgamate or liquidate. This means there are some changes coming in the medical aid market, with some schemes possibly disappearing and others becoming larger and stronger. So if you are worried about your medical aid what can you do?

• Come to Justmoney
• Compare medical aids
• Choose the best for you

No-one wants to have to worry about a medical emergency, that is why we get medical aid, but if there are some medical aids that are running into difficulties, maybe it is time that you looked to make sure you are getting the best value for money medical aid out there. The big schemes should all still be ok and might even take over some of the failing schemes. Check and make sure that the tables of benefits are the same and better, if you decide to swap.

When you can compare medical aid side by side then you can make a more meaningful decision about what you are getting for what you are paying for. When you use the Justmoney medical aid comparison calculator you can input your details, choose the kind of cover that you need and then get an instant online comparison of the leading medical aid scheme offerings for your profile. You can download their brochures right then and there and take the best medical aid for you and your family, bringing you peace of mind and saving you money.

Inflation falls again to 6 point 7 percent

The inflation rate or CPI (consumer price index) is a way of measuring how fast things get more expensive. Inflation was at a high last year and is finally nudging into the Reserve Banks' target band of 3 to 6 percent, falling 0.2%. This is welcome news and might cause consumer sentiment to swing more positive introducing a stimulus to spending. If you know things are not getting as expensive as you thought they were you can plan your budget in light of that. So what were the main factors in the inflation rate change?

• Housing and Utilites increased
• Alcohol and tobacco increased
• Food price inflation decreased

Housing and utilities remain an issue contributing a 3.3% increase to the inflation figure. Petrol is also expected to go up soon due to currency fluctuations. These will factor into the next set of CPI figures, but there effect will be felt over that period that the next set of figures will measure. CPI always trails reality so what the figures say applies to the period over which they were collected. This by definition has already happened so where we are today is not what the figures say, they say where we were yesterday.

CPI figures give an indication of where we have come from so that we can better plan what will come next. Planning your budget allows you to stay on top of any expected changes, if you know that housing and utilities are going up faster than other goods then you can allocate a greater portion of your income to paying your rent or your homeloan. If you are a big spender on petrol then you can expect to pay more at the pump and also plan your budget accordingly. The important thing is to be able to get a sense of what is most likely to cost more next month and be prepared for that.

Life insurance is now so easy to get

Getting life insurance quotes used to be a hassle but now it is possible to get instant life insurance quotes online. Life insurance aggregators basically collate the various quotes that are available from the various institutions that do life insurance and put them next to each other in an easy to compare format. No more calling around looking for the best deal, now it is at your fingertips with nothing more strenuous required than a click of your mouse. So how do you go about it?

• Come to Justmoney
• Use our calculator
• Just click and compare

Life insurance quotes are worked out using a simple formula that includes your age, your gender and whether you smoke or not. All you need to do is fill in your details on the form and it will instantly get online life insurance quotes for you. Then you can decide how much cover and what type of cover that will suite your particular needs best. All you need to do then is tick the quotes that you want and click the big red Get Quotes Now button. Instant online life insurance quotes delivered direct to your inbox.
All quotes are estimates that are based on the information that you entered and the actual quote may differ from the one displayed, so fill in your details as accurately as possible in order to get an accurate quote. Getting your life insurance sorted has never been as easy and as quick as it is now. Taking the hassle out and providing you with peace of mind, knowing that should anything happen you are covered, you can get obligation free online quotes in an instant with Justmoney.co.za, Your online guide to money.

Do you have the right medical aid yet?

Medical aid schemes are apparently changing what they will pay out compared to previously. There are less benefits being paid out than before and many people are worried that they will not have adequate cover. Medical aid is health insurance and apart from being there when you need it, it also provides peace of mind. So if you are worried about your medical aid you can quickly compare medical aid quotes using Justmoney. This way you can find out if what you need is covered. So what do you do?

• Compare medical aids
• Check the details
• Swap and save

Justmoney compiles medical aid details and puts them into an online medical aid quote comparison calculator where you can set who you want the medical aid for, check if you have any special needs for your medical aid like chronic condition cover, if you need more than a hospital plan, if your employer subsidises your medical aid and how much you can afford to spend each month on medical aid. Using these criteria along with others such as your age and income our calculator works out for you a range of affordable options. You can then delve deeper into your choices.

After you fill in you details you can see a side by side comparison including the details and benefits offered by each scheme. Now as medical aid is apparently covering less than before you can compare your medical aid with other medical aids and find the best cost to benefit ratio for your requirements. Make sure you check the details, because medical aid is a complex product, however with our calculator you can get all those details laid out in front of you. Check exactly what will be covered, by downloading the brochures and then you can make an informed decision as to whether the medical aid you have covers what you need and is value for money, and you can work out if you can swap and save.

Do you have the best value life insurance?

Life insurance is one of those things that you may not feel like you need. However while not everyone needs life insurance right now you will need it later. If you purchase a house one of the normal requirements for getting your homeloan is that you take out life insurance to cover your homeloan if something happens to you. Luckily there is a way for you to get quotes quickly online.

• Fill in your details
• Choose the cover you want
• Click to apply

Justmoney has developed a new tool so that you can find your way around life insurance even quicker and easier than ever before. All you need to do is fill in your details and then choose the type of cover that you need to protect you, your family and your assets. Then you can quickly and easily get instant quote indications for the major life insurance institutions, and just choose the best value cover for you.

If you are taking out a homeloan you will need life insurance and the Justmoney life insurance tool is the way for you to cost your life insurance before you apply for your homeloan allowing you to know what you can afford and letting you plan your budget accurately. It may seem like something you may want to put off but knowing what is on offer allows you to make a more informed decision and if you already have life insurance you may be able to save by swapping your policy over to another provider.

Interest rate decision on webcast

The Monetary Policy Committee of the Reserve Bank has been meeting Wednesday the 12th of August and today the Thursday the 13th. Including this one there are only three more meetings of the MPC before Tito Mboweni moves on. As always there is speculation regarding what the decision of the MPC will be. Most commentators seem to expect no cut, although there have been some rather loud calls for cuts and large ones at that. The decision will be live on webcast at 3 pm. So what are the chances?

• Most economists say no cut
• Twittersphere says no
• Mboweni may want a swan song

So although the prospects don't seem very good and even though major decisions like this should be based on hard facts often sentiments seeps into the decision, after all the invisible hand is often the sentiment and emotion of the market rather than some abstract mechanism. It is the feeling and intuitions of actual people in the market which sways their economic decisions. The data may be looking slightly better on the inflation front, but other figures show that the economy is still in decline so there are arguments both for and against a cut.

Tito Mboweni is on his way out and may want to get a bit of feelgood back from the market before he goes. Then again he is on record as saying the Governor of the Reserve bank is not a position to be based on popularity. However his past form shows that he does like to spring the odd surprise. Justmoney asked the Twittersphere what they thought and most said no change, and that The Guv will wait for the effects of previous cuts to filter through. There was even one call for an increase given that there may be further turmoil to come in international markets which could still wash over us here. Watch it live on webcast at 3 pm.

Last blast from The Guv

Tito Mboweni after a long and illustrious career as The Guv of the Reserve Bank is to retire. His tenure was dominated by the policy of inflation targeting. Tito is moving on to be replaced by Gill Marcus. This may or may not herald a policy change, but The Guv is giving it his best in his last few moments at the helm. He recently addressed University of Johannesburg students and these are some of the points that he made:

• Bank should remain independent
• Scathing of government management
• Bank should protect the currency

These are pretty normal ideas in the particular economic framework that most of the world exists in. The fact that the Bank is private however does allow control of the money in the country to be outside of government control. Money control can often have a larger effect than who is actually in government. The government set the policy of inflation targeting for which Mboweni came in for a lot of flak.

While the policy of inflation targeting can be seen to have been successful it still has many detractors and it will be interesting to see if the Reserve bank takes a new stance under the new Guv. The South African economy has so far weathered the global crisis better than many others and we are expecting a boost with the World Cup next year. Regardless of any new policy now is always a good time to plan your budget and make sure that you are not surprised by any shocks that may come in the future.

Billion Rand Bonanza

The recession is biting and the government is reacting. President Jacob Zuma recently announced a 2.4 billion Rand fund to help us get through. The money is going to be targeted to a training allowance and will be taken from the budget of the national skills fund and the UIF. Bailouts have been the order of the day internationally to deal with the financial crisis but instead of just chucking money at dubious companies, this bailout is intended to protect workers. So what will it entail?

• Training allowance of 50% salary
• Not a way to nationalise debt
• Reskill workers in under pressure industries

In the US a large part of the Obama bailout is unaccounted for. Many companies have essentially had their debt written off by tax payer's monies. There has been some dissatisfaction about this. With the Zuma scheme, however rather than writing off debt, companies that are under pressure will have the ability to place workers that they would otherwise have had to retrench into a training scheme under half pay. This may be tough on workers but it is better than no pay and joining the mass ranks of unemployed. The upshot is that the relief will allow companies to weather the recession and have better skilled workers after.

As always the details are where it will stick and the government is expected to release details on how it will work in practise soon. There is of course the danger that companies may place workers in the 'training' programme pay them 50% wages from the government then keep them working on their regular jobs without the benefit of the training programme. This would be a short sighted approach as the programme could be of major benefit to the South African economy in the longer term. The economy is under strain and investment should be in strengthening employment and skills. This programme is a measured response and if implemented correctly could place us at the forefront of the global economic recovery next year.

Women and the financial crisis

There is a financial crisis on, and with all crises there are effects and fallouts. SAPA reported that the Gauteng MEC for health and social development, Qedani Mahlangu, recently stated that women were feeling the worst of the crisis, with a higher unemployment rate than men. A recent MasterCard report on Socionomic inequality also found that women were in a worse off position than previously. So what are the facts?

• Fewer women are employed than men
• Women hold fewer management positions
• Yet 52.3% of women make the major financial decisions

Now if women's equality is declining, yet a majority of women are responsible for the major financial decisions in the household then there is something seriously out of kilter. The fact is we live in a highly patriarchal society where women are still considered second class citizens although in reality more women take care of the finances than men. There are things, however, that women (and men) can do in order to be able to better handle their finances in tough economic times like these.

Planning a budget is the first and most important thing to do, after that you can know what you need to spend in order to survive and then you will know how much money you need to set aside to protect yourself and your family from any unforeseen upsets. A rule of thumb suggests that putting aside at least three months worth of expenses will help you weather any sudden shocks to your financial situation, like losing your job. Planning now for the future will help ensure a better tomorrow. Setting aside savings today is essential to growing in the future.

When the going gets tough

Inflation is down, it is at the lowest it has been for a while and the Reserve Bank target range of 3-6 percent is looking increasingly close. The policy on inflation has been one of targeting interest rates. The Repo rate is 7.5%, this is the rate at which the Reserve Bank lends to the commercial banks at. They then tack on a profit margin and lend to the consumer. This is the Prime rate and it is 11% although this can be negotiated especially with a homeloan. So inflation is looking better but what else can you do to survive the recession?

• Re-negotiate your homeloan rate
• Get a balance transfer credit card
• Find a better value medical aid

When the going gets tough, the tough get going. There are many places where you can save yourself a bit of cash. Your homeloan could be re-negotiated to take advantage of lower interest rates and save you on what you have to pay out every month. A balance transfer credit card enables you to pay off your credit card debt at a lower rate, sometimes saving you up to half of your interest bill on your existing cards. The thing with a balance transfer card though is that all new purchases get charged at the regular higher rate of interest, so you can't spend anything on them. As a vehicle for paying off your credit card debt they are great as long as you can curb the swipe impulse.

Medical aid is seen as a must have purchase and many people spend a significant part of their income on medical aid, but the medical aid market is quite competitive with the medical aid providers constantly looking for new customers. This means that if you compare medical aid schemes you can often find major savings that will help you get going and free your personal finances up. Interest rates may not come down again anytime soon, so do what you can now to shave a few savings from your existing payments. Get a better bond, pay your credit card off cheaper and find a medical aid that gives you the security without the price.

How much of a pay increase is realistic?

Everything gets more expensive as long as we have inflation. Inflation is a measurement of how much prices are rising by. It is worked out by taking a 'basket' of goods and measuring the price changes in that basket. This gives CPI or the Consumer Price Index, which has been high for a while already. Now if everything is getting more expensive but you still earn the same money then in real terms you have less, hence yearly pay rises. So what would be an appropriate pay rise?

• Inflation peaked at 13.7% August 2008
• Inflation now at 8% in May 2009
• Average inflation June 2008 to May 2009 10.62%

There are strikes going on at the moment demanding increases that not only match the rate of inflation, which will just keep you standing still, but calling for above inflationary increases to increase pay in real terms. This is understandable, after all no-one wants to stay where they are, we all want life to improve and to have more money. Althouh the devil, as always, is in the detail. Statistics SA recently re-weighted the inflation basket leading to a sharp drop in CPI. Statistics SA say that their new weighting is more accurate.

The thing is due to the re-weighting it can lead pay negotiators to believe that inflation is artificially low and thus demand higher increases. The average CPI of 10.62% is a straight average that does not take into account the re-weighting. Basically life got more expensive by at least 10% from June 2008 to May 2009. Just to stay in the same place would require a 10% pay rise, and if you plan a budget this should be apparent. With the economy in recession many employers fear this extra burden and it will lead to further price inflation as new pay scales raise costs. This may be only the beginning of the strike season.

Creating a savings culture

There have been some scary statistics released recently on people getting into debt trouble. Here in South Africa for the last eight years we have been in a boom time and many people have enjoyed the fruits of this boom, but the boom is now over and people still have to pay their debts. When times are good lifestyle debt is not such a problem but now it is and people do not have the savings set aside to support themselves through the tough times. So what can you do to start saving?

• Plan a budget
• Set aside what you can
• Pay off your debts
  

It may seem simple, and it is, but people are not saving enough. Savings should not be seen merely as the interest you get on your savings account but as a way for you to protect yourself against the future. Money saved is money that is not spent, when you spend the money it is gone, when you save it can tide you over for a rainy day. Given the current global economic situation it is pouring rain right now.

First thing is to plan a budget then you will know exactly what you need to pay every month and what you have left over. As a rule of thumb you should have at least three months of expenses set aside and saved. Instead of taking what is left of your income and spending it, save it. Put more money in your budget into paying off your debts, the quicker you pay them the less you pay. It may not be much fun now, but when the market turns again you will be in a position to really get on with enjoying your lifestyle.

Give us our daily bread

Inflation has been falling this year after soaring causing the policy of inflation targeting via interest rates to cool credit spending and bring our economy into a safer zone. Inflation has been falling which means that stuff should not be getting as expensive as quickly as it was before. Inflation is measured by a basket of goods and some goods are still increasing at rates above headline inflation. Food comes to mind. There is a long period for food costs from planting time until retail many months later, but why are food costs still not coming down?

• Competition issues being investigated
• Bread price fixing cartels fined
• Supermarkets next on the list

Last year while inflation was still running really high farmers were having to pay more to plant and bring their crops to production and this lead to food price inflation being passed on. Even though headline inflation has been falling as a whole, its components have different rates of inflation. Food is such a big part of what we buy that it has a major effect on inflation and without these costs being passed through headline inflation could be even lower than the 8% it is at the moment. The competition commission is investigating the supermarket sector to see if there has been anything dodgy going on.

The competition commission has been flexing its muscles and seems determined to put a stop to the classic South African business culture which is one of jobs for friends and family, and milking it until it is dry. The supermarkets of course deny any wrong doing and even welcome the enquiry. The thing is in a radically altered financial environment like the one we find ourselves inthe old ways of doing things are not going to be able to survive. The National Credit Act was the signal that things were changing and so far it has stood us in good stead, now it is time for the gloves to come off and for our regulatory authorities to ensure that we don't have to live on just bread alone.

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Your Premier Banker will help you maintain control over your finances and together with specialists, will assist you to plan your finances for optimal growth, ensuring that you have all the help you need to make your banking life as simple as possible. You may contact your Premier Banker via email, telephone or by visiting a Premier Suite. Your Premier Banker will be able to address all your banking and informational needs and when necessary they can facilitate access to a range of specialists who will be able to assist you, ensuring that we provide you with exceptional service.

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Money questions? Ask the expert

The global economy has been faltering and even though South Africa has not had to bear the full brunt of the financial meltdown people here are still scared about the future and what it will hold for them. In times of uncertainity it is always wise to get the input of an expert. Justmoney.co.za South Africa's online guide to money is a website that can put you in touch with an expert to help you answer your personal financial questions. So how does it work?

• Click to ask the expert
• Choose the expert you need
• Ask your question

Simple as that. Justmoney has experts available for bank accounts, credit cards, debt, homeloans, life insurance and foreign exchange. They are waiting to answer your questions and help you get a little more certainity about your finances in a rapidly changing world. The effects of the global financial crisis are expected to last for a while yet so now is the time to look at your finances, get sorted what needs sorted and prepare for when the markets start to improve again.

Questions that have been answered include if you can open a bank account regardless of your credit history, and the answer is yes but you won't be able to apply for a credit card until you have improved your credit history. The expert also included a handy tip on how to go about doing that. Another question asks when should you get life cover. The answer is that you should look at taking life insurance once you have a major liability, like a bond, that would need to be covered should anything happen to you. Ask the expert today and find your way to financial freedom.

The crisis and your cash

Global recession, doom and gloom, wadda wadda. It all gets a bit samey after a while. Yes there is a crisis on, yes it is the biggest financial news for fifty years, yes it does tend to drag on a bit. However as boring as it may be now is an opportune time to get yourself financially fit so when the market comes back up again you will be ready to take advantage. So what can you do?

• Use a budget planner
• Get a savings account
• Invest in real things

There may be scope for change in the way the financial system works given the crisis but at the end of the day real change is unlikely and even though this is a massive crash it is part of a cycle that has been going on for years. This is not likely to change and what is most probable is that the financial system will stay much the way it is and continue to work the way it does. So it becomes imperative to understand what your money does.

Planning a budget enables you to know exactly what you can afford, a savings account is a way for you to trap value for later. A savings account may not pay the best interest but it is a hedge against inflation and pays better than money under the mattress. Savings accounts also allow you to harness the power of compound interest. Real things, are in a nutshell, real things so rather than put all the spare value you can scrape together into a paper based instrument (which caused this crisis) rather buy something real, like gold or diamonds. Real things last forever and are much less dependent on market vagaries.

Why would anyone save?

Save? Save you say? Why save when inflation is higher than what a savings account will pay you. Well that kinda misses the point of what savings are really all about. For the average consumer feeling the pressure of the global credit crunch it may seem like saving is unattainable or just a plain waste of time. This is not the case and saving now will help you be in a better position when the economy improves. So how do you go about saving?

• Plan a budget
• Find a savings account
• Set up an automated payment

The South African Savings Institute has declared July 2009 to be Savings month. They rightly point out that South Africans do not save enough. We have a rampantly materialist and consumerist culture here which impulse buys on credit to look good for other people encouraging flash cars but only staple foods to eat at night. This kinda materialism is not conducive to building a developmental economy. The surging new economies of the world like China and India both have massively more saved as a percentage of their incomes than we do.

So what really is the point of saving? Savings provide an economic buffer against the uncertainty of life in a capital system. You should really keep at least three months of expenses saved up to act as a buffer. You could keep that money under your bed but as low as the interest rates offered by savings accounts are they still offset the inflation effect on your cash. You should use a budget planner and then allocate an amount to save every month, even R50 is worth it, then set up an automated payment to your savings account so you never even miss that money, but its waiting there for you when you need it.