Mozo Rate Chasers Roundup – June 2014

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.

Home Loans:

Very few changes in home loans rates this month but we are still seeing some trimming of rates as lenders compete for new business. Here’s a summary of the main changes we saw during June:

• Greater Building Society have introduced a new loan option with a rate as low as 4.74%, called “Discount Ultimate Home Loan”. To qualify for this rate the loan needs to be at least $300,000 and have an LVR of no more than 80%, and features are the same as its existing Ultimate loans.

• ING Direct restructured the pricing tiers on both its Mortgage Simplifier and Orange Advantage with rates now starting from 4.83% instead of 4.88%.

• RESI cut the rates on its Smart Pro/Smart Pro Plus range between 7 and 12 basis points.

• Newcastle Permanent is waiving the application fee on its range of home loans, usually $550.

• Qantas Credit Union renamed its Step Ahead Home Loan to Low Cost Home Loan Package, and has a special payment of $747 for applications received by 30 September.

• UBank took 16 basis points off its 3 year fixed rate, now 4.72%, and 13 basis points off its 5 year rate, now 5.43%.

loans.com.au continues to have the lowest variable rate at 4.54%, closely followed by eMoney’s 4.55%. The top fixed rates are for 1 year IMB’s 3.99%, for 2 years Newcastle Permanent’s 4.49%, and for 3 years ME Bank’s 4.69%.

Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.

Credit Cards:

Credit cards continue to be the hot spot with providers seeing how far they need to push their balance transfer offers to stand out from the crowd.

Virgin Money has a 0% balance transfer offer on its No Annual Fee card, but make sure you read the fine print. To qualify you would have to spend at least $1,000 on the card in the first three months otherwise the balance transfer period is cut back to 6 months. Virgin has the same balance transfer offer on its Velocity Flyer card, but without the conditions attached.

From 1 July ANZ has the longest 0% balance transfer offer at 16 months. This is available on the bank’s non-rewards cards (First, Low Rate, Low Rate Platinum and Platinum). Also from 1 July ANZ is waiving the annual fee in the first year for most of its rewards cards and giving a bonus 50,000 rewards points (includes Frequent Flyer, Frequent Flyer Platinum, Frequent Flyer Black, Rewards, Rewards Platinum, and Rewards Black).

NAB also increased the 0% introductory purchase rate on its Low rate Card from 6 to 12 months.

HSBC has a special offer on its Platinum Credit Card where there is no annual fee for life, usually $129, but has reduced the bonus points from 30,000 to 10,000.

See all the great credit card offers along with the important fees and rates here to find a deal that suits you.

Term Deposits:

Another disappointing month for savers where we saw 30 term deposit rate increases compared with 116 decreases.

The only one of the big 4 banks to change term deposit rates was Westpac which shifted its best short term rate of 3.15% from 3 and 7 months to 4 and 6 months, as well as cutting some longer term rates. The 2 year rate is down 20 basis points to 3.40%, 3 years down 30 basis points to 3.70%, 4 and 5 years both down 20 basis points to 3.90% and 4.35% respectively.

The best rate for under 1 year is Arab Bank’s 3.90% for 9 months. The next best is 3.80% offered by a number of providers over a range of terms including Arab Bank, Heritage Bank, Newcastle Permanent, The Rock and Maitland Mutual for 6 months, and CUA for 7, 8, 10 and 11 months. The top 1 year rate is 3.90% from The Rock, while for 2 years the best is 4.10% from MyState.

Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.

At Call Deposits:

As for term deposits, at call savings rates continue to drift down, making really good deals harder to find.

NAB took 10 basis points off the introductory rate on its iSaver, now 4.00% for the first 4 months. RaboDirect removed the introductory rate on its High Interest Savings Account, reduced the ongoing bonus rate on its Premium Saver from 4.00% to 3.85%, and cut rates across its Notice Saver product. Maitland Mutual took 25 basis points off its Internet Saver introductory rate, now paying 4.00%until the end of September.

Accounts combining a savings and transactional component still lead the way on rates.

• UBank’s USaver with Ultra pays 4.37% p.a. on balances up to $200,000. Account must be opened with a minimum $10,000 balance and deposit of at least $2,000 must be paid into the Ultra bank account each month.

ME Bank’s Online Savings Account pays 4.60% p.a for 5 months up to $250,000, but must be linked to an Everyday Transaction Account.

For stand-alone savings accounts the best are:

• RAMS Saver’s ongoing bonus rate of 4.11% on balances up to $500,000

ING Direct’s Savings Maximiser paying 4.35% on balances up to $250,000 for the first 4 months.

We’ve been watching the conditional bonus rates falling over the last few months, so much so that a couple of the unconditional ongoing rates are starting to look more appealing:

• Virgin Money’s Virgin Saver is paying 3.75%

• Newcastle Permanent’s Online Savings Account pays 3.60%

Try our Savings Compare tool that makes it easy to see the conditions that can apply to special rates.

Mozo Rate Chasers Roundup – June 2014 was last modified: July 1, 2014 by Peter Marshall

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