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.
While this month we saw no rate changes by the major banks in the home loan arena, there were some more variable RBA rate cuts over June, as a result of the RBA cutting the official cash rate to 2% in May.
Variable interest rates
The lowest variable rate of 3.94% is available from Homestar (owner occupier refinancing with LVR up to 70%) and Mortgage House (owner occupier with LVR up to 50%). 3.98% is the next best, available from both Homestar (up to 95% LVR) and Freedomlend (up to 80% LVR).
Fixed interest rates
Over June we started to see longer term fixed rates creep up, with 10 lenders increasing rates for terms of three years or longer. We expect this trend will continue, however many long term rates haven’t moved yet and there’s plenty of competition for 1 and 2 year rates.
The best fixed rates at the time of writing are:
1 year: Homestar at 3.85%
2 years: Newcastle Permanent at 3.89%
3 years: Mortgage House at 3.94%
4 and 5 years: Freedomlend at 4.24%
An increasing number of providers have responded to APRA’s requirements that new lending to investors be limited to 10% of the total volume, with stricter LVR requirements, tighter assessment criteria and rate increases for investor loans.
During June the following lenders introduced price premiums for loans to investors: Aussie (10bp), eMoney (15bp), firstmac (15bp), Homeloans (15 to 30 bp), iMortgage 10 to 15bp), UBank (33bp) and Yellow Brick Road (10bp).
New special offers
AMP is now offering $1,000 cashback for Professional Pack loan applications received by 30 September and settled by 30 November 2015. The funds are deposited into an Offset Deposit Account with the bank at the time of settlement.
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
Over June there were few changes in the credit card world, however we did see some special balance transfer offers introduced, as well as a few purchase rate changes.
Balance transfer offers
NAB and Westpac both introduced special balance transfer offers. NAB is promoting a special balance transfer rate only available through Mozo of 0% for 18 months on its Premium Card (usually 15 months), with a 2% handling fee.
Westpac launched ‘online only’ balance transfer rates on its Altitude Platinum and Altitude Black cards – in both cases extending the 0% rate from 16 to 20 months. The bank’s 55 Day cards had a 0% for 6 months balance transfer rate which has now been extended to 14 months (or 16 months for the Platinum).
Citibank’s 0% for 24 months balance transfer rate on its Platinum Card is still the longest.
Purchase rate offers
Macquarie increased the purchase rate on its RateSaver card from 14.95% to 15.95%. The longest 0% introductory purchase rate at 12 months is available on NAB’s Low Rate Card and Virgin Money’s Velocity Flyer Card.
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.
Competition for personal loans has increased and there are now some very low rates available. The best rates are being offered by mutuals, with all of the big rate cuts made to car loans. Here’s a rundown of the big moves during the month….
Victoria Teachers Mutual Bank cut all of its car loan rates by 3.00% with the Green Car Loan now at 5.29%, New Car Loan at 5.79% and Used Car Loan at 6.79%.
BCU cut both its New and Used Car Loan rates by 10bp to 7.39% and 8.39% respectively.
Credit Union SA introduced a Car Loan Special rate at 5.99%.
Community Mutual Group sharpened the rates on its car loans with its fixed rate Accelerator loan down 50bp to 7.49% and its variable rate Car Loan down 250bp to 11.49%.
Victoria Teachers Mutual Bank now has the best rate for secured loans at 5.29%. The lowest general-purpose unsecured rate is 7.99% fixed from Newcastle Permanent.
Find the best deals you can get right now with Mozo’s Personal Loans comparison.
While there were fewer term deposit rate cuts in June than we’ve seen in recent months, the best rate for terms of less than one year is now 3.06% compared with the 3.50% that could be had at the end of May.
Under 1 year
The best rate for less than 1 year is Big Sky’s 3.06% for 9 months (up 61bp during the month), then a range of options at 3.05% including The Rock and MyState at 6 months, Bank of Sydney at 7 months, and Defence Bank and CUA at 8 months. Greater Building Society and Maitland Mutual both increased their 4 month rates by 20bp to 3.00%, now the best for that term.
CUA now has the best rate for 1 year after increasing its rate by 15bp to 3.10%.
ANZ’s best rate for less than 1 year is 2.30% for 6 months, down 10bp from last month. Commonwealth’s best rate for less than 1 year is 2.50% for 8 months, down from 3.05% in May.
NAB’s best rate for less than 1 year is 2.35% for 6 months, down from the 3.05% for 10 months available last month. Westpac’s best for less than 1 year is 2.30% for 6 months, down from 3.05% for 9 months last month.
For 2 year terms the best rate is 3.20% which is available from ING Direct, Greater Building Society and Maitland Mutual.
For 3 years it’s Greater Building Society and Maitland Mutual again, both offering 3.30% but at 4 years it’s just Greater Building Society with the highest rate at 3.40%.
You can do a little better if you’re prepared to lock your money away for 5 years, but not by much – RaboDirect and Greater Building Society are both advertising a 3.50% rate.
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
Big four banks
ANZ made no changes during June, keeping the introductory bonus rate on its Online Savings Account at 3.10% and the ongoing bonus rate on its Progress Saver at 2.71%.
Commonwealth took 15bp off the ongoing bonus rate on its Goal Saver account, now 2.90%, but kept the introductory rate on its NetBank Saver at 2.75%. NAB increased the ongoing bonus rate on its Reward Saver account by 10bp to 3.05%, but left the introductory rate on its iSaver unchanged at 2.70%. Westpac increased the introductory rate on its eSaver by 30bp to 3.11% and reduced the ongoing rate on its Reward Saver by 25bp to 2.70%.
RaboDirect added an introductory rate of 3.50% to its High Interest Savings Account, and the account has an 2.55% ongoing base rate. Newcastle Permanent took 20bp off the unconditional base rate on its Online Savings Account, now at 2.65% and slipping from being the best rate of this type in the market to second best. St.George/ BankSA/ Bank of Melbourne increased the introductory rate on its Maxi Saver account by 10bp to 3.20%.
A number of providers cut ongoing bonus rates by 25bp including Auswide Bank, B&E Personal Banking, Catalyst Money, Community First, Easy Street, G&C Mutual Bank, Hume Bank, Illawarra Credit Union, P&N Bank, SCU, Summerland CU, and Victoria Teachers Mutual Bank.
Other ongoing bonus rate cuts were from BankVic (30bp), Maritime, Mining and Power CU (29bp), Greater Building Society, Newcastle Permanent, Queensland Country CU, Teachers Mutual Bank (all 20bp), ADCU (15bp) and Beyond Bank (10bp).
The best ongoing bonus rates are all unchanged from last month – RAMS’ Saver at 3.60%, ING Direct’s Savings Maximiser on 3.50% and UBank’s USaver with Ultra at 3.37%.
The best introductory rate is now RaboDirect’s 3.50% on its High Interest Saver, followed by Citibank’s Online Saver at 3.40%.
The best ongoing rate is now Rural Bank ONE’s 2.75% for over $5,000 on its Saver account, followed by Newcastle Permanent Building Society’s Online Savings Account at 2.65% (but you must have an everyday account or home loan to qualify) and AMP’s 2.60% available on its Saver Account and Online Saver.
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.