This is a round-up of rates in August and some may have changed since the time of writing. To check on today’s rate, click on the highlighted product.
The RBA last moved the official cash rate in June and there’s no reason to think there will be a change in policy anytime soon. As a consequence, we are seeing very few rate changes and it feels like we’re in some kind of interest rate doldrums with no sign of a breeze to shift anything. Here’s a very brief rundown of the few meaningful changes that came through last month…
There’s been nothing worth mentioning on the variable rate front over the last month, but fixed rates are continuing to drift down. The best 1 year fixed rate for a $300,000 loan went from 5.54% a month ago to 5.49% now, offered by V Plus Home Loans. CUA also trimmed its 1 year rate, going from 5.65% to 5.50%.
The best 3 year fixed rates are about the same as for 1 year terms. Again the best is from V Plus Home Loans but three lenders, My Mortgage Freedom, UBank, Reduce Home Loans) are all close behind on 5.54%, and Bank Of Queensland rounds out the top 5 on 5.55%.
The only movements have been around the margins for personal loans. Commonwealth Bank made a bit of a splash by cutting its fixed rates, the secured option by 1.50% but the unsecured option by only 0.25%.
This has also been reflected in trends across the market as a whole over the last year. The average secured fixed rate is down 95 basis points over the 12 months, but unsecured rates are only down 17 basis points over the same period. Anyone in the market for an unsecured loan should be sure to shop around to make sure they don’t get burnt by paying too much interest.
Rates on both at call and term deposits remained virtually unchanged during the month. A few providers are making strategic moves up and down, but the best deals are largely the same. UBank continues to lead the way on 1 year term deposits at 5.35%, and the RAMS Saver still offers the best at call rate of 5.75%.
As economic indicators continue to track at the same kind of levels they have for the last few months, there is no compelling case that the cash rate should be moved. A range of economists have been predicting that rates may move up again some time next year and until something changes that view, we will expect to see more of the same over the coming months, perhaps with continued easing in fixed loan and deposit rates.