Mozo Rates to Riches blog – June 2016

Mozo Rates to Riches blog – June 2016

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 June and some may have changed since the time of writing. To check the latest information click on the highlighted product.

Home Loans:

Variable rates

Most providers cut rates during May in response to the RBA’s cash rate reduction and there were far fewer changes in June, although still some sharp new offers introduced.

Commonwealth Bank took the rate on its Extra Home Loan down from 4.63% to 4.24% for owner occupiers, and from 4.92% to 4.51% for investors. The bank’s usual $600 application fee on this loan is being waived for a limited time.

Other new low rates include 3.64% from iMortgage (down 0.10%) and 3.79% from Homeloans. There was some good news for investors with Homestar cutting its Variable Rate Loan from 4.28% to 4.08%, leaving its owner occupier rate unchanged at 3.73%. HSBC dropped all of its main variable rate loans to 3.85% for owner occupier borrowers.

The best variable rates for owner occupiers borrowing up to 80% are:

Reduce Home Loans – 3.59%

Loans.com.au – 3.63%

iMortgage – 3.64%

Fixed rates

A few providers cut key rates and introduced special rates to attract new customers.

Suncorp launched a special 2 year rate at 3.74%, joining its 3.99% for 3 years rate, both under its Home Package Plus which has an annual fee of $375. ME took its 3 year rate down 0.10% to 3.79%, now the third best for the term. Illawarra Credit Union increased its 1 year fixed rate by 0.15%, but at 3.65% it’s still the best available for the term. ANZ’s 3.75% for 2 years is the lowest fixed rate available from the ‘big 4’ banks.

The best fixed rates are:

1 year – 3.65% from Illawarra Credit Union

2 years – 3.74% from Newcastle Permanent & Suncorp

3 years – 3.67% from loans.com.au

4 years – 3.80% from BCU

5 years – 3.99% from Greater 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.

Credit Cards:

While there were no changes to standard purchase rates during June, there were some new cards launched and a few cashback offers introduced or extended.

New cards

ANZ launched its Rewards Travel Adventures card with a purchase rate of 20.24%, an annual fee of $225 and, if $500 is spent on the card in the first 3 months, a complimentary Virgin Australia domestic flight as well as two single lounge entry passes each year. Both an American Express card and Visa card are issued with 2 rewards points earned per dollar spent on the American Express card and 1 point per dollar spent on the Visa. There is no cap on the amount of points that can be earned, but they do expire after 3 years.

CUA launched two new credit cards. There’s a Low Rate Credit Card with a purchase rate of 11.99% and annual fee of $49, and a Platinum Credit Card which comes with a rewards program, purchase rate of 19.99%, and annual fee of $149. For now, both cards also have a 0% for 13 months balance transfer rate and the annual fee is waived for the first year. Rewards points are earned at 1 point per dollar and capped at 100,000 per year.

Rewards and cashback offers

Woolworths is giving new Everyday Platinum Credit card customers a $100 gift voucher and new Qantas Platinum Credit Card customers 10,000 bonus Qantas Points. Both Woolworths cards also have 0% for 14 months balance transfer rates.

ANZ is now offering $200 cashback on its First and Platinum credit cards.

The biggest bonus points offers at the time of writing are:

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.

Personal Loans:

Two of the four major banks slashed car loan rates, and a range of other lenders are offering big discounts on either rates or fees.

ANZ’s New Car Loan rate is down 1.15% to 6.80%, and the bank is also waiving its $150 application fee on its Unsecured Personal Loan. Commonwealth Bank cut its New Car Loan rate by 1.00% and is now at 7.49%. Gateway Credit Union also slashed its New car Loan rate, down 1.05% to 5.99%.

If you’re after an unsecured loan, Easy Street cut a huge 3.19% off its rate, now at 9.99%. Heritage Bank is waiving its usual $200 application fee on all personal loans up until the end of July.

The top 3 rates for secured loans are:

Loans.com.au – Car Loan – 4.69%

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 Deposits:

Term deposit rates are down again this month and many of the best rates that were around at the start of the month have vanished.

CUA’s new 9 month rate of 3.10%, up 0.75% from last month, is equal best for the term. ME also introduced a 9 month rate of 3.10%, up from 2.50%. QBANK (formerly Queensland Police Credit Union) has a rate of 3.05% available for 6 or 9 months, or 3.01% for 1 year. UBank is also offering a 3.01% rate, with a choice of 6 months or 1 year.

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

Savings accounts:

Savings rates continue to tumble as more providers passed on cuts following the RBA cash rate reduction in May.

CUA was one of only a few to buck the trend, increasing its eSaver Reward ongoing bonus rate by 0.30% to 3.15% (now equal second highest), and its eSaver Plus bonus rate by 0.10% to 2.85%. St.George (and related brands Bank of Melbourne and BankSA) increased the introductory rate on its Maxi Saver from 3.05% to 3.20%.

The four major banks have all cut back their ongoing bonus rates in favour of increasing short term introductory rates, with one exception. NAB has reduced its introductory rate (now 2.25% for 4 months) while keeping its ongoing bonus rate higher (up 0.10% in June to 2.95%). The other 3 major banks all have introductory rates at either 2.95% or 2.96% and ongoing bonus rates between 2.10% and 2.35%.

Best rates are unchanged from last month, with Citibank’s 3.40% introductory rate for 4 months the best short term rate, and ME’s Online Savings Account ongoing bonus rate at 3.35% the best for the longer term.

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 roundup@mozo.com.au.

Mozo Rates to Riches blog – June 2016 was last modified: July 5, 2016 by Peter Marshall

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