This is a round-up of rates in July and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
With the APRA putting pressure on providers to reduce their investment loan portfolios to under 10% growth per annum, over July we saw a number of lenders lift rates for investor and/or interest only loans, and a small number limit maximum loan-to-value ratios. Over the month we also saw significant movements in the fixed rate world.
Changes to investment loans
ANZ is charging investors an additional 30 to 60 basis points on fixed rates. Commonwealth is charging between 10 and 40bp on fixed rate loans and from 10th August will lift variable investor rates by 27bp. NAB will lift variable rates for investors by 29bp while Westpac has so far only increased the rate on the 2 year introductory period on its Flexi First Option Home Loan.
While there was plenty of movements by the majors when it came to investment loans, we are still yet to see any changes to investor lending from two-thirds of the lenders listed in our database.
Variable interest rates
The lowest variable rate of 3.89% is available from Mortgage House (owner occupier with LVR up to 50%) followed by Homestar on 3.94% (owner occupier refinancing with LVR up to 70%). 3.98% is the next best, available from both Homestar (up to 95% LVR) and Freedomlend (up to 80% LVR).
Fixed interest rates
Shorter term fixed rates are still being cut, however the trend is clearly up for 4 and 5 year rates, and we’ve now seen some increases in 3 year rates from large second-tier institutions. These are some of the more interesting fixed rate changes….
Greater Building Society launched a new discounted fixed rate product for loans over $300,000 and LVR up to 80%. Rates are 20bp lower than its standard fixed rates.
ING Direct added 15bp to take its 1 and 2 year rates to 4.39%, increased its 3 year rate by 21bp to 4.45% and its 5 year rate up by 9bp to 4.58%.
Loans.com.au introduced a special 2 year fixed rate of 3.99% for owner occupiers with an LVR of less than 80% with a mandatory rate-lock fee of $350.
Newcastle Permanent cut its 1 year rate by 20bp to start from 3.69% (equal best for the term), its 2 year rate by 10bp to start from 3.79% (best for the term), but increased its 3 year rate by 10bp to 4.09% and its 5 year rate by 10bp to start from 4.49%.
SCU slashed its 1 year rate by 60bp to be at 3.79% for packaged loans and 3.94% for non-packaged.
The best fixed rates at the time of writing are:
1 year: Greater Building Society and Newcastle Permanent at 3.69%
2 years: Newcastle Permanent at 3.79%
3 years: Mortgage House at 3.94%
4 and 5 years: Freedomlend at 4.24%
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
Purchase rate offers
No changes to purchases rates this month but there were a few changes to the various offers available. Coles launched a Low Rate MasterCard which has a purchase rate of 11.99%, an annual fee of $49 and 0% balance transfer rate for 6 months.
Community First’s McGrath Pink Visa has the lowest purchase rate in the market at 8.99%, and comes with 4.99% for 6 months on balance transfers and purchases.
Intro rate offers
St.George/BankSA/Bank of Melbourne cut the 0% introductory purchase rate from 6 months to 3 months on its No Annual Fee card, and added a 0% for 12 months balance transfer rate.
The longest 0% introductory purchase rate at 12 months is available on NAB’s Low Rate Card and Virgin Money’s Velocity Flyer Card. Citibank’s 0% for 24 months balance transfer rate on its Platinum Card is still the longest.
Bonus point offers
American Express has doubled the bonus points available on its Velocity Platinum card to 100,000, but also doubled the $500 spend in the first 3 months to $1,000 to qualify.
Citibank’s Prestige card continues to have the largest swag of bonus points, with 70,000 Qantas Frequent Flyer or Citibank Rewards points if you spend in the first 3 months.
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.
After a number of incredibly low rates were introduced for personal loans last month we saw the smallest volume of changes to personal loan rates since we started writing this blog.
There were several moves when it came to car loans with ANZ lifting the rate on its Online Secured Car Loan by 34bp to 7.29%, Loans.com.au taking its fixed Car Loan rate down 10bp to 6.39% and SCU removing its $100 application fee on its fixed Car Loan.
Secured personal loans
IMB took its fixed Secured Personal Loan down 10bp to 7.49%. Victoria Teachers Mutual Bank has the best rate for secured loans at 5.29% (Green Car Loan) and RACV took 10bp off its fixed Personal Loan rate, now 9.15%.
Among the major banks, the best rate is 7.29% secured from ANZ.
Unsecured personal loans
Over July Bankwest increased its fixed Unsecured Personal Loan rate by 91bp to 13.90%. The lowest general-purpose unsecured rate is 7.99% fixed from Newcastle Permanent and the best rates for unsecured among the big four are 13.39% from NAB (variable) and Westpac (fixed).
Find the best deals you can get right now with Mozo’s Personal Loans comparison.
While there continue to be more cuts than increases to term deposit rates, very few providers made any changes to term deposit rates in July.
Less than 1 year
The best rates for less than 1 year are Arab Bank’s 3.10% for 9 months (up 20bp since last month) and UBank‘s 2.96% for 6 months (up 10bp since last month).
The best rate for 1 year is at 3.05%, available from Teachers Mutual Bank and Queensland Police Credit Union.
Taking the lead when it comes to 2 year term deposits is QPCU’s 3.10%.
Maitland Mutual and Greater Building Society have 3.30% for 3 years.
Greater Building Society offers the goods with 3.40% for 4 years.
Once again Greater Building Society offers a competitive 3.50% for 5 years, also matched by RaboDirect.
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 Bank increased the introductory rate on its NetBank Saver from 2.75% to 2.85% but dropped the ongoing base rate by 15bp to 1.85%. The bank left the onoing bonus rate on its Goal Saver account at 2.90%.
NAB made no changes in the month, leaving the ongoing bonus rate on its Reward Saver account at 3.05%, and the introductory rate on its iSaver at 2.70%.
For the second month in a row Westpac has cut the ongoing bonus rate on its Reward Saver account. The rate was cut by 25bp in June, and that’s been followed by a 20bp in July, taking the rate down to 2.50%. The introductory rate on its eSaver remains at 3.11% but the standard base rate is down 25bp to 1.75%.
Bankwest cut rates across its range of savings accounts. The TeleNet Saver introductory rate is down 10bp to 3.15%, the Hero Saver ongoing bonus rate is down 10bp to 3.25%, and the Smart eSaver ongoing bonus rate is down 5bp to 3.00%.
St.George/BankSA/Bank of Melbourne cut its Incentive Saver account ongoing bonus rate by 30bp to 2.50%, the base rate on its Maxi Saver is down 25bp to 1.50% and the base rate on its SENSE Savings account is down 20bp to 1.75%.
Maitland Mutual Building Society took 20bp off the ongoing bonus rate on its Bonus Saver account, now 2.80%, bankmecu took the ongoing bonus rate on its Bonus Saver down 25bp to 3.00% and Summerland Credit Union cut the ongoing bonus rate on its Bonus Saver by 25bp to 2.30%.
The best ongoing bonus rates are 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 RaboDirect’s 3.50% on its High Interest Saver, followed by Citibank’s Online Saver at 3.40%.
The best ongoing base rate is 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.