This is a round-up of rates in September and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
Lenders have continued to increase the gap between owner occupier and investor rates this month. There are now quite a few lenders offering rates below 4.00% for owner occupiers making principal and interest repayments with loan-to-value ratios of up to 80%, while 13 lenders introduced new rate premiums for investors.
Variable rates – 3.99% and under
There are a number of lenders now offering owner occupiers a variable rate up to 3.99% but you need to check what loan amounts and loan-to-value ratios these rates are available for. These include: Credit Union SA, Easy Street, Freedomlend, Homeloan HQ, Homeloans, Homestar, HSBC, iMortgage, ING Direct, loans.com.au, Mortgage House, MyState, Newcastle Permanent, State Custodians, the Rock Building Society and UBank.
The best variable rates at the time of writing are:
- iMortgage at 3.84% (owner occupiers making principal and interest repayments, up to 80% LVR and a loan amount between $200,000 and $2,000,000).
- 3.89% from Mortgage House (owner occupier with LVR up to 50%)
- Homestar on 3.94% (owner occupier refinancing with LVR up to 85% for loans less than $500,000).
Major bank variable rate changes
NAB cut the rate on its Base Variable Home Loan from 4.28% to 4.15% for both owner occupiers and investors making principal and interest repayments. The bank is also making 250,000 Velocity points available for customers whose owner occupier loans of more than $250,000 are approved by the end of 2015 and drawn down by 30 April 2016, and within 30 days of loan drawdown have both a NAB Velocity Rewards card and a NAB transaction account.
Westpac decreased the rate on its Flexi First Home Loan by 43bp to 4.19% for owner occupiers and to 4.46% for investors.
Commonwealth Bank is waiving the $600 application fee and the $8 monthly service fee on its 3 Year Economiser Special Loan for owner occupiers (at a variable rate of 4.19% for 3 years then 4.99%).
Last month we reported seeing some increases in fixed rates for longer terms, however that has now ceased on the back of increased expectation that the RBA’s cash rate will stay at its current levels or perhaps even go further down over the next couple of years. There were a large number of changes so here are just a few highlights….
Aussie reduced its owner occupier rates by 10bp for 1 year (now 4.49%), by 20bp for 2 and 3 years (to 4.29% and 4.39% respectively) and by 24bp for 4 and 5 years (both now 4.65%). Investor loans were being charged a 27bp premium but that’s now increased to 37bp for all fixed terms.
Citibank has reduced fixed rates with its owner occupier Mortgage Plus packaged loan option down 10bp for 2 years and down 30bp for 3 years, both now at 4.29%.
loans.com.au cut its owner occupier rates by 11bp for 1 year (now 4.12%), 30bp for 2 years (now 3.99%), and 17bp for 3 years (now 4.22%).
St.George/BankSA/Bank of Melbourne reduced its fixed rates for investors by 5bp for 1 year (now 4.64%), 25bp for 2 and 3 years (now 4.44% and 4.54% respectively), and 5bp for 4 and 5 years (both now 4.84%). Non-packaged rates are 15bp higher.
The best fixed rates at the time or writing are:
- 1 year: Illawarra Credit Union at 3.50%
- 2 years: Newcastle Permanent at 3.69%
- 3 years: Greater Building Society and Newcastle Permanent at 3.89%
- 4 and 5 years: Freedomlend at 4.24%
The majority of lenders now charge higher interest rates for investor loans. During the last month we saw a further 13 lenders introduce new rates for investors, ranging between 20bp and 42bp over their rates for owner occupiers, including Abode, Adelaide Bank, Auswide Bank, Bendigo Bank, Citibank, Credit Union SA, CUA, firstmac, HSBC (no longer accepting any new investment loans), loans.com.au, ME, People’s Choice Credit Union, and Suncorp.
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
Very few changes were made to credit card offers in September and the changes that were made were only minor tweaks with several providers making changes to their cash advance rates.
Westpac cut the cash advance rate on its Altitude cards from 21.24% to 20.74%. Similarly, the St.George/BankSA/Bank of Melbourne group of brands took the cash advance rate on its Amplify cards down from 20.74% to 20.24%.
Big Sky increased the cash advance rate on both its cards to 18.99% (Low Rate Visa was at 13.58% and Visa (Cash Rewards) was at 16.58%).
Citibank reduced the 0% balance transfer terms on its Classic and Simplicity cards by 6 months, now at 12 months and 6 months respectively.
Bonus rewards points offer changes
Bankwest gave the bonus Qantas Frequent Flyer points available on its Qantas Platinum MasterCard a boost from 8,000 to 50,000, but you need to spend at least $2,500 on eligible purchases in the first 3 months.
Qantas Credit Union introduced 5,000 bonus points on its Visa Platinum Credit Card when the card is issued and an additional 5,000 points for each month an eligible purchase is made (for the first 5 months)
The Citibank Qantas Signature card’s bonus point offer has hiked up from 10,000 bonus points to 50,000 bonus points for making any purchase on the card in the first 3 months.
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.
The lowest interest rate for purchases is 7.99% available from Quay Credit Union on its Visa Credit Card. The card also has a 0% for 6 months balance transfer offer and the $36 annual fee is waived in the first year.
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.
For the major banks, ANZ’s fixed Online Secured Car Loan rate was cut from 7.29% to 7.20%, and Westpac increased the fixed rate on its unsecured Personal Loan from 13.39% to 14.39%.
People’s Choice Credit Union introduced a new rate option for its Discounted Personal Loan for loans over $20,000 used to purchase of new cars, at 5.64%.
Bankwest increased its fixed Car Loan rate from 7.79% to 8.49%, while cutting the fixed rates on its unsecured Flexible Personal Loan (from 14.49% to 13.39%) and its Unsecured Personal Loan (from 13.90% to 12.69%). The application fee on its Car Loan was reduced by $65 to $285.
Peer to peer lender RateSetter is waiving the $200 application fee on its Unsecured Personal Loan.
The best personal loan rates at the time of writing are:
- Victoria Teachers Mutual Bank is lowest for secured loans at 5.29% (Green Car Loan). They also have the best New Car Loan rate at 5.79%.
- The lowest general-purpose unsecured rate is 7.99% fixed from Newcastle Permanent.
- Among the majors, the best secured rate is ANZ’s 7.20% Car Loan, and for unsecured loans its NAB’s 13.39% (variable).
Find the best deals you can get right now with Mozo’s Personal Loans comparison.
Most changes to term deposit rates were down again this month, continuing the trend we’ve reported for a long time now.
Westpac was the only one of the major banks to make changes in September. The bank bucked the rate cut trend, increasing some rates slightly with its best for less than 1 year now 2.40% for 6 months, 1 year now at 2.45% and 5 years unchanged at 3.10%.
The best term deposit rates at the time of writing are:
Less than 1 year: 3.20% for 6 months from Citibank
1 year: 3.00% from Arab Bank Australia
2 years: 3.05% from Arab Bank Australia
3 years: 3.20% from Maitland Mutual
4 years: 3.30% from Greater Building Society
5 years: 3.50% from RaboDirect
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
Some signs of competition in at call deposits this month with two of the four major banks increasing their short term introductory bonus rates. ANZ added 20bp to the 3 month introductory rate on its Online Savings Account, taking the rate to 3.30%. This move was followed soon after by Westpac increasing the introductory rate on its eSaver by 6bp to 3.31%.
Commonwealth Bank left the introductory rate on its NetBank Saver at 2.85% but took the ongoing bonus rate on its Goal Saver account down 10bp to 2.80%.
There weren’t many other changes in September but Teachers Mutual Bank/UniBank added a 3 month introductory rate to its Online Savings Account at 3.00% for balances over $2,000.
Newcastle Permanent Building Society no longer has the highest unconditional ongoing base rate after it cut the rate on its Online Savings Account by 15bp to 2.50%. CUA cut the ongoing bonus rate on its eSaver Plus by 5bp to 3.00%, and cut the unconditional base rate by 10bp to 2.05%.
The best savings account rates at the time of writing are:
- For ongoing bonus rates there is 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, matched by the St.George group of brands’ Maxi Saver.
- The best ongoing base rate is AMP’s 2.60% available on its Saver Account and Online Saver, followed by RaboDirect’s High Interest Savings Account on 2.55%.
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.