This is a round-up of rates in February and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
While the RBA has been hinting that rates may have stabilised for now, the Mozo Rate Chasers have seen encouraging signs that banks are still keen to compete for your business.
The average variable rate for a home loan of $300,000 decreased slightly during February, from 5.83% to 5.81%, as several lenders trimmed and adjusted their rates. The only cut from the big banks though was NAB which reduced its Base Variable Rate Home Loan from 5.88% to 5.73%.
The best variable rates are still much lower than this, with loans.com.au’s Blackboard Special at 5.09%, and NAB’s online brand UBank’s UHomeLoan (for those refinancing) at 5.12%. Click here to compare variable rate loans.
The hot spot for fixed rates is in 2 year terms, where the average rate has dropped 15 basis points during the month, compared with 12 basis points for 1 year rates and only 6 basis points for 3 year rates. In fact, the average 2 year fixed rate (5.29%) is marginally lower than the average 1 year fixed rate (5.30%). On a $300,000 loan the average 1 year rate is 5.43% and for 3 years it’s 5.50%.
All of the big 4 banks now offer 4.99% for 2 years if you take their packaged loan option and there are only a few lenders that beat them. Newcastle Permanent undercuts them at 4.94% as does Bank of Queensland at 4.96%.
Right now it’s definitely a case of the longer you’re prepared to lock your money away for the better the rate you’ll get. The best term deposit rate out there for an investment of $25,000 is RaboDirect’s 5.00% for 5 years. RaboDirect also has the best 3 year (4.60%) and the best 4 year (4.70%) rates. ING Direct jumps in with the best 2 year rate (4.60%) wile UBank offers the top 1 year rate (4.70%). If you don’t want to commit for such a long period UBank is offering the best rates for investments of less than 1 year. They’ve got the best 90 day (4.51%), 180 day (also 4.51%), and 270 day (4.55%) rates.
In a surprise move UBank increased its ongoing bonus rate from 4.66% to 4.91%, once again giving it the best rate on the market after a few months of letting others have the running. See more savings account options here.