Mozo Rate Chasers Roundup – March 2015

Mozo Rate Chasers Roundup – March 2015

This is a round-up of rates in March and some may have changed since the time of writing. To check on today’s rates click on the highlighted product. 

Home Loans:

Most lenders have now reduced their variable rates by the full amount of the February rate cut. The real action though has been in fixed rates as lenders seek to lock borrowers in for at least a few years. One year fixed rates are some of the lowest, but even 4 and 5 year fixed rates are starting to fall and are carrying only small premiums over shorter term rates compared with the margins we usually see.

Non-bank lender Homestar took the razor to its fixed rates with its 1 year rate down 80 basis points to 3.95% (3rd best in market), 2 year rate down 69 basis points to 4.11% (3rd best in market), 3 year rate down 91 basis points to 4.91% (6th best in market), 4 year rate down 120 basis points to 4.35% (3rd best in market), and 5 year rate down 125 basis points to 4.40% (5th best in market).

The lowest 1 year fixed rate is Hume Bank’s 3.60% introductory rate on its Home Loan with Property Package, while Newcastle Permanent has the lowest fixed rates for 2 and 3 years (3.89% and 3.99% respectively), and 4 and 5 years (both 4.29%).

For variable rates Homestar and loans.com.au are both at 4.23%, beaten only by Mortgage House’s 4.19% which is available only to borrowers with LVR’s less than 50%, and eMoney’s 4.20% which requires a loan amount of more than $500,000.

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:

Only three providers have reduced the interest rates on their credit cards since the RBA cash rate cut, one last month and two in March.

Bendigo Bank cut the rate on its Platinum card from 19.99% to 18.99% and 25 basis points off both its Basic Black (now 12.24%) and Ready Red (now 19.74%) cards. Victoria Teachers Mutual Bank also took 25 basis points off its Visa Classic rate, now 12.94%.

If you think you might be paying too much for your credit card the Mozo site lists 58 cards with interest rates less than 14.00%. In March there were 55 cards offering 0% introductory purchase rates and 100 offering 0% balance transfers for varying lengths of time.

The card with the lowest purchase rate, Community First’s McGrath Pink Visa, lost its long-running 4.74% for 9 months balance transfer and introductory purchase rate, but still has the lowest ongoing purchase rate at 8.99%.

NAB is offering 0% for 12 months on both balance transfers and purchases, across its entire range of cards, and its Low Rate card has an ongoing purchase rate of just 13.99%.

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

Personal Loans:

Very few rate cuts for personal loans again this month as lenders largely hold on to the February RBA rate cut, but of those that did reduce rates there are some great deals.

The biggest move we saw was the St.George/Bank of Melbourne/BankSA group heavily discounting its unsecured line of credit Get Set Loan rate to 13.75% – all previously over 17% pa.

Bendigo Bank took 70 basis points off its fixed rates – Generation Green secured now 6.79%, Generation Green unsecured now 11.79%, Secured Personal Loan now 7.79% and Unsecured Personal Loan now 12.79%. Liberty took its Drive Car Loan rate down to 6.69% from 8.99%.

Newcastle Permanent and loans.com.au continue to have the best fixed secured loan rate at 6.49%, unchanged again this month.

The lowest general-purpose unsecured rates are 7.99% fixed from Newcastle Permanent and a promotional rate of 9.99% variable from Victoria Teachers Mutual Bank. Peer-to-peer lender RateSetter also advertises an indicative rate of 7.90% fixed.

Among the majors, the best advertised rates are 7.63% secured from ANZ and 13.39% unsecured from NAB.

Find the best deals you can get right now with Mozo’s Personal Loans comparison.

Term Deposits:

As expected, rates for term deposits continue to slide with 325 cuts and only 34 increases over the month. Cuts averaged around 15 basis points, about half the size of the average cut in February, and were spread across all terms with the majority affecting 6 month, 1 year and two year terms.

ME Bank cut back its short term special from 3.60% for 6 months to 3.30% for 7 months, but it still has the best rate under 1 year. The Rock Building Society now has the best 4 month rate at 3.25% after increasing it by 110 basis points, and this is the second best rate for any term less than one year.

At 6 months, NAB advertises 2.60% while Westpac has the same rate at 7 months and Commonwealth at 8 months. ANZ’s best short term rate is 2.55% for 3 or 6 months. At 1 year the major banks pay between 2.60% and 2.70% and at 2 years from 2.70% to 2.80%. Commonwealth is a fraction behind the others at these terms. Major bank 5 year rates are now between 3.00% and 3.20%.

Teachers Mutual Bank and ME Bank have the best rate for 1 year at 3.30%, even after ME Bank took 20 basis points off during March. ME Bank also has the best 2 year rate of 3.35% along with BankVic.

A sign of how quickly rates have dropped during the month, the best 5 year rate at the end of February was 4.00%, but this is now 3.75% (from BankVic).

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

At Call Deposits:

ING Direct cut the base rate on its market leading Savings Maximiser to 2.50%, and from 1st April also reduced the ongoing bonus rate from 4.00% to 3.75%.

More cuts of 25 basis points to headline savings rates flowing through following the February RBA cash rate cut including: ADCU; B&E Personal Banking; bankmecu; BankVic; Catalyst Money; Community First; Credit Union SA; Easy Street; Hume Bank; MMPCU; People’s Choice Credit Union; Queensland Country Credit Union; Unicredit and Victoria Teachers Mutual Bank.

A group of mutuals have reduced their headline savings rates by more than the amount of the RBA rate cut. BankVic, SCU and Teachers Mutual Bank all took 35bp off their ongoing bonus rates. P&N Bank cut 50bp off the ongoing bonus rate on its SwiftSaver Account, now 3.00%. Police Bank’s Online SuperSaver had its ongoing rate cut 30bp to 2.50%. G&C Mutual Bank slashed the ongoing bonus rate on its Bonus Saver account to 2.50%, down 75bp (and cut the same off the base rate, now 0.50%).

The best ongoing bonus rate is now RAMS Saver, unchanged at 3.91%. ME Bank still has the best introductory rate, unchanged at 3.85%. The best ‘no-strings attached’ rate is still Rural Bank ONE’s Saver, unchanged at 3.00%.

Find the best at call savings rates including any hoops that must be jumped through to qualify for them using Mozo’s Savings Account Compare tool.

Mozo Rate Chasers Roundup – March 2015 was last modified: June 29, 2015 by Peter Marshall

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