This is a round-up of rates in May and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
The RBA cut the official cash rate to 2.75% in May, its lowest level in over 50 years. We saw the big banks rush announcements out saying they would pass on the full 25 basis point cut in what must be record time, with all but ANZ making their statements on the day of the RBA release. ANZ kept its powder dry, determined to stand by its decision to review rates ‘independently’ of the RBA on the second Friday of the month. When we did hear from ANZ they trumped the other major banks with a 27 basis point cut, putting pressure on NAB’s long held claim to having the lowest variable home loan rates of the big 4. Both now have standard variable rates of 6.13%.
Greater Building Society went further than any other lender, cutting its variable home loan rates by 30 basis points, now offering a standard variable rate of 5.75% and a basic home loan rate of 5.39%.
As well as home loans we’ve seen deposit rates tumbling down, but as has been the form over recent years credit card rates largely remain unchanged. Read on for the biggest movers and best deals in the market now.
By the end of May most lenders had announced their new rates and the average variable rate for a home loan of $300,000 dipped from 5.78% to 5.55%. There are a number of lenders with tempting rates below 5.0% but most of those are for loan-to-value ratios of less than 75% or 80%. The cheapest on offer is 4.75% from loans.com.au for new purchases only with a maximum LVR of 80%, and UBank offers 4.87% for refinancers only, again with an LVR cap of 80%. For those who need more than 80% financing loans.com.au will go up to 90% at a rate of 4.89%, and iMortgage will lend to the same level at 4.97%.
Before this month the best fixed rates had been sitting well below variable rates but that gap is decreasing. The average 1 year rate has only gone down 10 basis points during the month to 5.13%. The best is 4.57% from eMoney for loans up to 75% LVR and they also have the best for loans up to 90% LVR on 4.72%, closely followed by Greater Building Society’s 4.74%.
Check out all the home loan rates with Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
Unlike home loans, credit card rates haven’t budged. ANZ is the only major provider to have cut rates at all, and even then it has only lowered the rate on its Low Rate and Low Rate Platinum cards by 15 basis points to 12.99%, all of its other card rates remain unchanged.
A handful of mutuals have provided some relief, with bankmecu passing on the full 25 basis point cut to its credit card customers, P&N Bank did the same, while Police Bank passed on 20 basis points and Qantas Credit Union lowered the rate on its Lifestyle card by 15 basis points.
The largest cuts have again been made by Greater Building Society, chopping a full 1.00% off it’s credit card rates from 1 be an amazingly low 9.25%, the best in the market.
If your credit card provider isn’t passing rate cuts to you, take a look at these great low rate credit card offers.
While borrowers benefit from the lower interest rates it’s getting harder for savers to find a good deal. The average ongoing and introductory rates are both down about 15 basis points over the last month, to 2.82% and 4.40% respectively.
RAMS have just announced the rate on their RAMS Saver will be cut to 4.76% from 1 June, but it’s still the best ongojng bonus rate out there. Otherwise the best at call savings rates are some of the introductory offers, for example RaboDirect’s 4.76% and ING Direct’s 4.75%, both variable rates for 4 months.
Mozo’s Savings Account Compare tool will show you the best rates in the market, and make it easy to compare any conditions that apply.
Rates are down here too, but a little less than variable savings rates as most providers had already priced in some anticipated cuts in previous months. The average rate for each fixed term option is down between 8 and 13 basis points during May.
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
With rates at all time lows, now more than ever it pays to know what rates you are on whether you’re a depositor or borrower, and where you can go for a better deal. The Mozo Rate Chasers are always looking out for hot deals, updating our site daily so you can get the most bang for your buck!