This is a round-up of rates in August and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
In last month’s Rate Chaser Roundup we talked about how many of the lenders we track were increasing pricing for investor loans. That trend continued in August but we also saw some lenders try to increase their appeal to owner occupier borrowers with lower rates and other incentives.
HSBC’s Home Value Loan is now available only to owner occupiers, and has a special discounted rate of 3.99%, down from 4.23%. Greater Building Society now has a Great Rate offer that’s only available to owner occupiers. The rate is 4.09% for loans larger than $150,000 and with an LVR up to 80%. Heritage Bank has cut the owner occupier rate on its Discount Variable Home loan from 4.19% to 4.14%. Mortgage House trimmed the rate on its Advantage Home Loan Special by 4bp, now 3.95%. The loan must be over $350,000 and have an LVR less than 80% to get this rate.
The lowest variable rates are the same as reported last month: 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).
Cash back offer
Newcastle Permanent is paying $2,000 cashback for owner occupiers who refinance from another lender to its Premium Plus Package (minimum loan amount $150,000).
Fixed term rates up to 3 years are still going down. However we have noticed a definite trend of 4 and 5 year rates increasing, so if you want to know what your repayments are going to be for that long you should think about locking in a rate now.
There’s a new lowest 1 year fixed rate after Illawarra Credit Union dropped to just 3.50% and a new lowest 2 year rate as Newcastle Permanent took its rate down 10bp to 3.69%. The best 3 year rate is unchanged from last month (Mortgage House’s 3.94%) as are the best 4 and 5 year rates (Freedomlend offers 4.24% for either fixed term).
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
While we saw very few changes to credit card offers this month, the Mozo team uncovered a new cheapest credit card – Quay Credit Union’s Visa Credit Card that has a purchase rate of just 7.99%, and comes with a 0% for 6 months balance transfer period. The card’s annual fee of $36 is waived in the first year.
Bonus point offers
ANZ changed its rewards points offers so that instead of all cards getting 50,000 bonus points when you spend $3,000 in the first 3 months you now get 25,000 points for $2,500 spend on standard card, 50,000 points for $5,000 spend on Platinum cards and a massive 75,000 for $7,500 spend on Black cards. The annual fee is still waived in the first year on all rewards cards.
The new ANZ offer means that its Frequent Flyer Black and Rewards Black cards now have the largest amount of bonus rewards points available, taking over from Citibank’s 70,000 points offer which is still available on its Prestige card.
Intro rate offers
Westpac increased the 0% balance transfer period on its Altitude cards from 16 to 20 months, and from 16 to 18 months on its Low Rate card.
NAB’s Low Rate card and Virgin Money’s Velocity Flyer Card continue to have the longest 0% introductory purchase rate periods at 12 months, and Citibank still has the longest 0% balance transfer period at 24 months.
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.
Heritage Bank is waiving the application fee on its personal loans through to the end of September. The fee is usually $160 for car loans and $105 for other personal loans.
Commonwealth Bank increased the rate on its Car Loan from 7.99% to 8.49%, while Suncorp increased its New Car Loan from 6.99% to 7.79%. Car loan rates at RACQ and RACV went in the other direction with the best rate from both going from 6.70% to 6.50%.
Secured personal loans
Victoria Teachers Mutual Bank has the best rate for secured loans at 5.29% (Green Car Loan). Among the major banks, the best rate is 7.29% secured from ANZ.
Unsecured personal loans
The lowest general-purpose unsecured rate is 7.99% fixed from Newcastle Permanent. From the big four, the best is offered by NAB (variable) and Westpac (fixed) at 13.39% .
Find the best deals you can get right now with Mozo’s Personal Loans comparison.
Big four banks
The major banks sat on their hands with their term deposits in August, leaving rates untouched. Across the four major banks the best rate for less than 1 year is Commonwealth bank’s 2.80% for 8 months, and for longer terms it doesn’t get much better with rates topping out at 3.10% for 5 years from Westpac.
The one bright spot this month is Citibank introducing a special offer on its 3.20% for 6 months rate. The bank usually only makes its best rates available for those with more than $100,000 to invest, but right now its 6 month rate is available for deposits from $10,000.
The best rate for 1 year is at 3.05%, available from Teachers Mutual Bank and Queensland Police Credit Union.
For longer terms the top rates are 3.20% from Greater Building Society, The Rock Building Society and Maitland Mutual, for 4 years it’s 3.30% from Greater Building Society and People’s Choice Credit Union, and for 5 years it’s 3.50% from RaboDirect.
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
Big four banks
Westpac was the only one of the four major banks to make any changes to its at call rates during August. The bank increased the introductory rate on its eSaver by 14bp to 3.25%.
St.George/Bank of Melbourne/BankSA increased the introductory rate on its Maxi Saver by 30bp to 3.50%, the equal best introductory rate available.
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, now matched by the St.George group of brands’ Maxi Saver mentioned above.
The best ongoing base rate is 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.