Every month the Mozo Rate Chasers uncover the biggest bonuses, special offers and the best rates to help you keep more money in your pocket rather than the banks!
This blog is a summary of offers in May and some may have changed since the time of writing. To check the latest information click on the highlighted product.
What a difference a month makes – the RBA cut its official cash rate by 0.25% and lenders rushed to announce rate reductions. Half of the 81 lenders in the Mozo database cut their headline rates by the full amount, 34 lenders passed on less than that, and we’re still waiting to hear the changes of 6 lenders.
In other news, Virgin Money is again offering home loans after a lengthy absence. With loans backed by Bank of Queensland, Virgin Money‘s best rates start from 3.99% and customers can score Velocity Frequent Flyer points at settlement as well as throughout the life of their loan.
Even the lenders that announced they were passing on the full cash rate reduction did not necessarily apply that to all of their loan options, so it’s worth checking your current interest rate and comparing it with the best rates in the market. Investors in particular missed out on some or all of the reduction in many cases.
The only one of the big 4 banks to not pass on the full cut was ANZ, which dropped variable rates by 0.19%. NAB has the lowest ‘no frills’ loan rate at 4.20%.
The best variable rates for owner occupiers borrowing up to 80% are:
Although not as directly tied to the cash rate, fixed rates were also slashed following the RBA announcement. Three of the big 4 banks cut their 2 year rates, ANZ to 3.75% and both NAB and Westpac to 3.89%, and NAB also cut its 3 year rate, now 3.99%.
While most of the big fixed rate reductions were focused on 2 and 3 year rates, Greater Bank made a splash by introducing the lowest 4 and 5 year rates at 3.99%, which were then matched by Teachers Mutual Bank.
The best fixed rates are:
- 1 year – 3.50% from Illawarra Credit Union
- 2 years – 3.64% from Newcastle Permanent
- 3 years – 3.69% from UBank
- 4 years – 3.99% from Greater Bank/Teachers Mutual Bank
- 5 years – 3.99% from Greater Bank/Teachers Mutual Bank
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount, property value and purpose.
Only two providers reduced rates on credit cards – Bank Australia cut rates on its card range by 0.25% while G&C Mutual Bank took the rate on its Low Rate Visa down 0.50% to 9.49%, and on its Platinum Visa the rate was reduced by 0.25% to 18.74%.
NAB is now offering 0% for 15 months on purchases and balance transfers, with balance transfers attracting a one-off fee of 2% of the amount transferred.
Rewards and cashback offers
Cashback and bonus point offers are largely unchanged from last month with just a few providers tinkering around the edges or removing offers.
American Express increased the bonus points available on its Platinum Edge card from 5,000 to 10,000, but removed the first year annual fee waiver worth $195.
The Coles $100 cashback that was available on two of its three cards has ended, however Commonwealth will still pay $250 to new Low Rate Card customers who apply before 30 June and spend $500 before 31 July.
The best bonus points offers at the time of writing are:
- Commonwealth Bank – Diamond/Platinum Awards – 80,000
- ANZ – Frequent Flyer/Rewards Black – 75,000
- Citibank – Signature – 75,000
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.
As we saw in credit cards, very few personal loan rates were reduced in line with the lower cash rate.
Bank Australia reduced its Unsecured Lifestyle Personal Loan rate by 0.25% to 12.14% and Gateway Credit Union took the rates on its range of personal loans down by the same amount. Its New Car Loan is now at 7.04% and its Unsecured Personal Loan is 9.84%.
Providers making larger rate reductions were Heritage with its Car Loan down 1.00% to 7.99%, and Suncorp which cut its Fixed Car Loan rate by 0.80% to 6.99%.
The top 3 rates for secured loans are:
- Loans.com.au – Car Loan – 4.50%
- Community First Credit Union – New Car Loan – 5.34%
- People’s Choice Credit Union – Discounted Personal Loan – 5.64%
Find the best deals you can get right now with Mozo’s Personal Loans comparison.
Term deposit rates were down sharply during the month, with many of the best rates that were around at the end of April now gone.
ANZ increased its 4 month rate by 1.00%, now 3.00% and 3rd best for the term. The bank reduced rates for all other terms by 0.25%.
ME’s 3.30% for 6 months (up 0.80%) is the best rate for any term up to 2 years. In fact, it’s the best rate for any term with the exception of Maitland Mutual’s 3.40% for 3 years.
QPCU’s 6 month rate is up 30bp to 3.20%, the second best rate for up to 1 year. The mutual also increased its 9 month rate by 15bp to 3.15%, the best for that term.
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
ING Direct’s Savings Maximiser rate was 3.50% and second best in the market at the start of the month, but has now been reduced to 3.00%.
Commonwealth Bank took the ongoing bonus rate on its GoalSaver down 0.35% to 2.35% and the introductory rate on its NetBank Saver down 0.30% to 2.80%. The other three major banks all matched the RBA’s 25bp cut on their headline rates, with Westpac only reducing its eSaver introductory rate by 0.16%, now 2.95%, at the same time extending the term for that rate from 3 to 5 months.
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, 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.