Mozo Rates to Riches blog – August 2016

Mozo Rates to Riches blog – August 2016

Every month the Mozo Rate Chasers help you find the biggest bonuses, special offers and the best rates, so you can keep more money in your pocket rather than the banks!

This blog is a summary of offers in August and some may have changed since the time of writing. To check the latest information click on the highlighted product.

Home Loans:

If you haven’t checked how your mortgage rate compares with the rest of the market for a while, now is a great time to take a look. Most lenders held back at least some of the RBA 0.25% cash rate reduction, with only 6 passing on the full amount and the rest cutting variable rates by an average of only 0.11%.

Variable rates

Non-bank lender Homestar passed on the full rate cut and now has the second lowest variable rate for borrowers needing up to borrow 80% of the value of their purchase. By contrast, the big 4 banks only passed on 0.10% to 0.14%, and the best of their rates are ANZ’s Simplicity PLUS at 4.03% or Westpac’s 3.65% variable for 3 years then reverting to 4.19%.

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

Reduce Home Loans – 3.35%

Homestar – 3.44%

Fixed rates

Fixed rates are looking quite attractive with 3.59% available for 1 or 3 years (see lenders below). However we would caution borrowers to consider only fixing part of their loan as rates could fall further yet, and while the fixed rates are undoubtedly low now we may not have seen the bottom of this cycle.

The best fixed rates are:

1 year – 3.59% from Greater Bank

2 years – 3.69% from Bankwest, MyState, Newcastle Permanent

3 years – 3.59% from Bank of Queensland, Police Credit

4 years – 3.74% from Greater Bank

5 years – 3.74% 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:

Bank Australia became the only lender to pass on both the May and August RBA cash rate cuts to its credit card customers with its Low Rate card now down at 9.39%.

More good new for bargain hunters – Bankwest slashed the purchase rate on its Breeze range of cards from 12.99% to 8.99%, and the annual fee on these is waived for the first year.

American Express launched a new card called Explorer Credit Card, with a rate of 20.74% and annual fee of $395. The card earns Gateway Membership Rewards points at a rate of 2 points per dollar, and applicants before the end of November can qualify for 100,000 bonus points.

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

Personal Loans:

Most of the personal loan rate cuts in August were focused on car loans, with 8 providers reducing car loan rates.

For example, Beyond Bank cut its car loan rate from 6.74% to 5.69%, IMB Bank’s car loan rate is down 0.15% to 6.34% and QT Mutual Bank dropped its car loan rate from 6.47% to 6.17%.

The top 3 rates for secured loans are:

Loans.com.au – Car Loan – 4.69%

Police Credit Union – Fixed Car Loan 4.99%

Community First Credit Union – New Car Loan – 5.34%

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

Term Deposits:

Term deposit rates have turned the corner and are heading up! Well for terms of 1 year or more that’s true, however rates for shorter terms are still heading south.

At the same time as the big banks announced they would not be cutting home loan rates by much they balanced this by announcing that they would be increasing term deposit rates. All of the big 4, except NAB, now pay 3.00% for 1 year with NAB down at 2.40%, and all except ANZ pay 3.10% for 2 years with ANZ topping that with a 3.20% rate.

These rates are among the best available. For 1 year the top rate is Gateway Credit Union’s 3.11%, and for 2 years the best rate is ANZ’s, equalled by People’s Choice Credit Union.

For shorter terms the best rates are Arab Bank’s 3.10% for 3 months, and 3.00% for 7 months from Newcastle Permanent and Maitland Mutual, or 3.00% for 6 months from ME.

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

Savings accounts: 

Bad news for savers not prepared to commit to a term deposit, as rates keep on falling and most accounts are now paying less than 1 or 2 year term deposits.

The top ongoing bonus rate from a big 4 bank is ANZ’s Progress Saver at 2.01%. For introductory rates the best they offer is 3.00% for 3 months from ANZ, or 2.71% for 5 months from Westpac.

The best no-strings attached ongoing rate is 2.30% from Queenslanders Credit Union, followed by 2.10% from AMP.

Best ongoing bonus rates at the time of writing are RAMS at 3.15% and ME at 3.10%. For a short term bonus the top rate is 3.20%, available for 4 months from Australian Unity, or for 3 months from St.George.

Find the best 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 Rates to Riches blog – August 2016 was last modified: October 4, 2016 by Peter Marshall

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