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.
With no change in the cash rate from the RBA at its October meeting there will be little impetus for variable rates to change during the month. Over the last year the average variable rate home loan has dropped 99 basis points, from 6.26% to 5.27% now. Over the same period average rates for fixed home loans have not fallen as far – 1 year rates are down 93 basis points to 4.85% and 2 year rates are down 86 basis points to 4.92%.
While record low fixed home loan rates have received much attention over the past few months recently we’ve seen the most competitive of those rates dry up as lenders start to change gear in anticipation of the current rate reduction cycle coming to an end. The best fixed rates are still lower than the best variable rates – but only just.
If we are at an interest rates turning point it would be a good idea to make sure at least part of any mortgage is fixed, and it’s not too late to do that now even if you’ve missed locking in at the record lows.
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.
The news for savers remains pretty grim. While average rates aren’t moving much, any shifts are still following a downward trend.
The best rates for most fixed terms are around 4.0% but most are even less than that. The only way to get an attractive term deposit rate is to lock your money away from 5 years, then rates can be found that are closer to 5.0%.
With expectations that rates are more likely to be rising again next year it might be best to stick with variable at call rates for now and wait for fixed term rates to improve.
UBank launched its ‘Ultra’ transactional account during October and while that account by itself doesn’t pay interest, if you have a USaver and Ultra and you can make a $2,000 deposit into the Ultra account each month (such as your salary) you can earn a mighty 4.77%. Even if you don’t make the minimum deposit requirement every month you’ll still get 3.71% which right now is better than many fixed term deposit rates.
The RAMS Saver continues to offer tempting rates with 4.51% paid for a minimum $200 deposit in the month while those who don’t want to meet conditions should look at ING Direct’s Savings Maximiser which has a 4 month introductory rate of 4.50%, or Bankwest’s TeleNet Saver which counters with a 4.30% introductory rate for 6 months.