This is a round-up of rates in June and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
There weren’t many changes to variable rate products in June as the RBA chose to sit on its hands while giving time for the previous months cut to work its way through the economy. With the dollar now on the skids and some better news from the manufacturing sector it could be a while before the RBA feels the need to pull the cash rate lever again.
Still, competitive pressure has been helping to push fixed home loan rates down even further, while at the same time we have seen some rates rise for longer term deposits, particularly over the last couple of weeks.
The average 1 year fixed rate fell by 6 basis points in June to 5.06% but 3 year rates fell the most, down 9 basis points to 5.12%. ING Direct has cut 30 basis points from its 1 year fixed rate over the last month to be at 4.79% now. They also have a great 3 year rate of 4.84%. Westpac is also fighting hard for new customers taking its 1 year rate down 45 basis points to 4.79% and its 3 year rate down 30 basis points to 4.99%.
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.
Any positive news for savers has been restricted to those willing to lock their money away for longer terms. We saw small falls in the average rate offered for each term but a few providers bucked the trend and have been increasing their rates, you just need to know where to find them.
The highest rate for 6 months is UBank’s 4.40% but the best for 1 year is ME Bank’s 4.30%. To beat these rates you have to look at 2 years (UBank again, with 4.51%), 3 years (CUA and Bank of Queensland both offering 4.50%), 4 years (Greater Building Society’s 4.60%) or even 5 years (RaboDirect or Greater Building Society offering 4.70%)
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
While writing this blog the RBA announced that the cash rate would not be changed again in July. It seems unlikely that fixed rates could keep falling in the absence of a further cut to the cash rate, but there’s always someone looking for a larger slice of the pie and better rates is a good way to get attention, so let’s see how far they will go.