This is a round-up of rates in November and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
There wasn’t a whole lot of rate movement in November but longer term fixed home loan rates are heading up again, and even though the RBA has refrained from cutting the cash rate over the last few months, at call deposit rates have continued to slide down.
There have been very few changes in variable rates, however there is still some competition in fixed rates, particularly for shorter terms. Greater Building Society offered the best 1 year fixed rate of 4.29% throughout the month. However at the start of December when writing this article IMB has jumped into the market with an offer of 3.99% for 1 year, but only for loans of more than $300,000 with an LVR of less than 90%.
Longer term fixed rates are on the way up with the average 5 year fixed rate 6 basis points higher, and the cheapest 5 year fixed rate in the Mozo database jumping 39 basis points, from 5.05% to 5.44%.
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
If we exclude short term introductory rate offers and just look at ongoing rates, whether conditional or unconditional, the average rate fell by a massive 20 basis points during November. The average introductory rate fell only slightly but we still saw 5 providers trim their offers.
More alarmingly, from 1 August to the end of November 12 of the 16 ‘high interest’ online savings accounts offered by the big 4 banks and their subsidiaries were each subject to rate cuts of more than the 25 basis points announced by the RBA in August.
There were only two positive moves in the Savings Account market during the month. ME Bank has brought back its Online Savings Account introductory rate offer of 4.60% for the first 5 months, but after that you get a fairly ordinary 2.90%. Defence Bank increased its iSaver 3 month introductory rate by 30 basis points, but that only pushes it up to 3.70%.
Average rates for term deposits barely shifted during the month across all terms. As usual the best rates are for the longest terms with RaboDirect offering 5.0% for 5 years. With rates likely to go back up well before the end of a 5 year investment though, most people wouldn’t want to lock their savings away for that long. Some of the best rates for shorter terms are UBank’s 3.95% for 6 months or a bunch offering 4.0% for one year such as UBank, Suncorp and Heritage Bank.