Mozo Rate Chasers Roundup – February 2016

Mozo Rate Chasers Roundup – February 2016

This is a round-up of rates in February and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.

Home Loans:

Variable rates

There were a couple of big moves in variable rate home loans. Citibank has slashed its Basic Variable Promotional rate by 0.45% to 4.08% for owner occupiers and by 0.32% to 4.21% for investors. Illawarra Home Loans cut its variable rate for owner occupiers down to 3.99%, and after 5 years there’s a further rate reduction available of 0.05% to reward customer loyalty.

The best variable rates are:

Homestar – 3.86% (for LVR’s up to 70%)

Mortgage House – 3.89% (LVR’s up to 40%)

Homestar – 3.94% (LVR’s up to 85%)

QPCU – 3.97% (LVR’s up to 95%)

Then a host of lenders are offering a variable rate of 3.98%.

Fixed rates

Fixed rates can be had as low as 3.89% for up to 3 years, however over the last month we did see a few providers lift their cheapest offers so that some of the lowest rates reported in our last Rate Chaser’s Roundup have already disappeared.

The best fixed rates are:

1 year – 3.50% from Illawarra Credit Union

2 years – 3.85% from Illawarra Credit Union

3 years – 3.89% from Illawarra Credit Union

4 years – 4.29% from Police Credit Union

5 years – 4.34% from Greater Building Society

Cashback offers

The Newcastle Permanent $1,000 cashback for owner occupier borrowers who are refinancing from another lender we reported last month is still available. Commonwealth Bank has upped the ante by offering $1,500 for owner occupier loans refinanced from another lender, as long as the loan is for more than $250,000.

Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.

Credit Cards:

Interest rates

Very few changes to credit cards this month with most reducing or removing introductory rate and balance transfer offers but there was one stand-out change. Coles dropped the rate on its Low Rate Credit Card from 12.99% to 9.99%, now the fourth lowest in the Mozo database and one of just 8 cards we’re aware of with a purchase rate less than 10%.

The longest 0% balance transfer rate is NAB’s 24 months on its Low Rate Card, and the big 4 bank also has the longest 0% introductory rate period of 15 months on its Premium Card.

Rewards points

Coles is also looking after customers who want its Rewards MasterCard with an offer of 20,000 bonus points.

Commonwealth Bank Diamond and Black Awards customers earning Qantas Frequent Flyer points have had their earn rate cut by 20%, after a reduction in the number of Qantas points that each CBA Awards point is worth.

See all the great credit card offers along with the important fees and rates here to find a deal that suits you.

Personal Loans:

The big news for bargain hunters is Bankwest reducing the fixed rate on its Car Loan from 8.49% to 7.99%.

Queensland Country Credit Union also reduced rates, taking 1.00% off both its New Car Loan (now 7.95%) and its general purpose Secured Personal Loan (now 9.75%).

The cheapest new car loan is still loans.com.au’s 4.50% while the best from the big 4 is ANZ’s 7.55%.

Find the best deals you can get right now with Mozo’s Personal Loans comparison.

Term Deposits:

Westpac made some changes to term deposit rates, the first for a major bank since July 2015. The bank cut its 4 month rate by 50bp and 7 month rate by 65bp, both now 2.00%, while the 1 year rate was cut by 25bp to 2.45%. At the same time, the 3 and 6 month rates were increased from 2.00% to 2.35% and 2.40% respectively.

ME Bank cut their best-in-market rates, falling from 3.30% for 6 months to 2.80% for 7 months and cutting 12 and 13 month rates by 20bp to 3.00%.

ING Direct continues to have the best rate for 11 months, but now 25bp higher at 3.15%. It is also now the best rate under 1 year.

CUA’s new 3.00% for 10 months rate is best for that term.

Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.

Savings accounts: 

ME took the unconditional base rate on its Online Savings Account down 0.20% to 1.80% but at the same time increased the ongoing bonus rate to 3.60%, now the best available.

Previous market leader RAMS cut its savings account rate again. This month the unconditional base rate was reduced 0.30% to 1.50% and its conditional bonus rate is down from 3.40% to 3.15%.

Westpac cut the introductory bonus rate on its eSaver from 3.10% to 2.85% while St.George (and Bank of Melbourne/BankSA) cut the introductory rate on its Maxi Saver from 3.25% to 3.00%.

Bank accounts:

Your bank account could reward you with cash back if you like using payWave for small purchases. There are two new offers available this month.

Citibank is paying customers of its Plus Transaction Account 5% cashback on payWave purchases under $100 for the first 4 months, when $3,000 or more is deposited into the account each month (to a maximum of $150 per month).

HSBC have a similar offer on their Day-to-Day Account but only for the first 3 months to a maximum of $100 per month and without the minimum deposit requirement.

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 roundup@mozo.com.au.

Mozo Rate Chasers Roundup – February 2016 was last modified: March 1, 2016 by Peter Marshall

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