This is a round-up of rates in September and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
At its October meeting the RBA has cut the cash rate for the first time since June. While most analysts said it could have gone either way, many banks were anticipating cuts sometime before the end of 2012, so have been busy factoring cuts into some areas of their pricing already.
Following the RBA’s decision variable rates are all about to change, however in September they were very static. Not so for fixed rates though where the lenders have been pricing in expected future rate cuts. The average 1 year fixed rate dropped from 5.89% in August to 5.78% at the end of September, while the average 3 year fixed rate fell from 5.91% to 5.80% over the same period.
The best 1 year fixed rates on offer are My Mortgage Freedom’s 5.34% (for LVR’s of up to 75%), and ME Bank’s 5.39% (for members of eligible super funds and unions). Quite a few lenders have rates at or under 5.49%, including UBank’s UHomeLoan for those seeking to refinance, and Greater Building Society’s Ultimate Home Loan Package.
ME Bank is offering the same rate as their 1 year term if you wanted to lock in that low rate for 3 years, as are My Mortgage Freedom. Newcastle Permanent and RAMS are two providers offering 5.49% for 3 years without having any special criteria such as super fund membership or LVR restrictions.
At call deposit rates didn’t budge through September, but as for home loans, it’s the fixed rates that have been tumbling down. The average 6 month rate for term deposits of $25,000 was 4.54% last month and has fallen to 4.47%, while the average 1 year rate dropped from 4.61% to 4.53%.
The best rates available for both terms are hovering around 5.00%, but we see more providers cutting their rates every day so you will need to be quick if you want to lock in at this level as we don’t think these rates will be around for long. ING DIRECT and ME Bank are both offering 5.00% for 1 year while CUA and Rural Bank One will pay 4.90% for 6 month deposits.
Mozo’s Rate Chasers are expecting to see plenty more rate action over the next month. Check out our naughty or nice table on our Reserve Bank page to see how much of the 25 basis point cut each lender has passed on, and how long they are delaying passing the savings to consumers.