This is a round-up of rates in January and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
Welcome to the first Rate Chasers Roundup of 2016, where we uncover everything from the top rates through to the market movements to help you choose the best banking products for you.
Last year there was plenty of movement in the home loan world with lenders increasing interest rates to meet capital building requirements by APRA. While a few lenders started the year by following this trend and increased some rates, the majority of the changes we saw were cuts. Check out some of the highlights from the month below:
Beyond Bank cut its Low Rate Special Variable Home Loan by 35bp for owner occupiers to 3.99% and by 20bp for investors to 4.14%, but also reduced the maximum LVR allowed from 80% to 70%.
Mortgage House introduced its Easy Start Home Loan, available for owner occupiers for loan amounts up to $500k with a 3.69% variable rate for the first year, then 4.19% after.
AMP took 9bp off the Essential Home Loan for owner occupiers over the course of the month down to 4.08%, while the Basic Package was also cut by 9bp for owner occupiers to 4.28%. Also worth a mention is HSBC who cut 11bp off the Home Value Loan for owner occupiers to 3.99%.
Looking to lock in the interest rate on your home loan? Here are the providers that offer the best fixed rates at the time of writing:
1 year – 3.50% from Illawarra Credit Union
2 years – 3.74% from Greater Building Society
3 years – 3.89% from Greater Building Society, Queensland, Police Credit Union
4 years – 4.29% from Newcastle Permanent
5 years – 4.30% from Freedomlend
Newcastle Permanent is offering $1,000 cashback for owner occupiers refinancing from another financial institution until 30 April. The minimum loan amount is $250k and the loan must commence by 30 June.
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
For those who love to be rewarded and want the benefits of a Platinum card, the new year kicked off with a number of improved bonus points offers.
American Express increased the number of bonus points available on its Qantas Premium Card from 30,000 to 80,000 while Bankwest increased the bonus points on its More Platinum MasterCard from 28,000 to 80,000. Citibank now pays 75,000 points on its signature card and 60,000 on its Platinum card. All of these offers are only paid when a certain amount is spent on card purchases within the first 3 months.
There are also plenty of balance transfers around and many were increased during the month. However we are seeing more providers charge a balance transfer fee for their longer offers so be sure to check the fine print before signing up for a card.
For example, Bankwest’s Breeze cards now have a 21 month 0% balance transfer rate, however a 2% balance transfer fee applies. Similarly, ANZ increased the 0% balance transfer period on its First, Low Rate, Low Rate Platinum and Platinum cards from 16 to 18 months, but increased the fee charged from 2% to 3%. The longest interest free balance transfer period is on NAB’s Low Rate Card at 24 months, and it has a 2.50% fee.
The longest 0% balance transfer in Mozo’s database that doesn’t attract a fee is 20 months on the St.George/Bank of Melbourne/BankSA Vertigo and Amplify Platinum cards.
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.
2015 ended with providers cutting rates on personal loans, and the direction continues in 2016 with four lenders taking their rates down.
Australian Military Bank had its Used Car Loan at 9.39% and its New Car Loan at 6.73% – both have now been reduced to 6.59%.
Bankwest cut the rate on its Unsecured Personal Loan from 13.90% to 12.99%, Suncorp dropped its Unsecured Personal Loan rate from 11.99% to 10.99% and Westpac reduced the rate on its Personal Loan (unsecured) from 14.39% to 12.99%.
Find the best deals you can get right now with Mozo’s Personal Loans comparison.
For the second month in a row we saw term deposit rate increases outnumber decreases.
Greater Building Society and Maitland Mutual both added 20bp to their 5 month rates, both now offering the best rate for the term at 2.90%.
Greater, ING Direct and Maitland Mutual all added 10bp to their 1 year rates, now at 3.00%.
ME’s 3.30% for 6 months (up 60bp) is now the best rate for less than 1 year, but it also reduced its 7 month rate by 65bp to 2.50%.
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
ME was leading the way with a 3.55% ongoing bonus rate, and they’ve increased their lead over the rest of the market by making it 3.60%. Next best is ING Direct’s Savings Maximiser at 3.50%, and there are a few other providers at that rate but for shorter introductory periods without conditions.
The only other change of note during the month was NAB increasing the ongoing bonus rate on its Reward Saver from 2.85% to 3.10%.
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.
Detailed information about changes to bank pricing, offers, incentives, product launches, changes and price leaders can be obtained by subscribing to the Mozo Banking Roundup, a monthly newsletter. See here for more information, or email firstname.lastname@example.org.