Mozo Rates to Riches blog – October 2016

Mozo Rates to Riches blog – October 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 October and some may have changed since the time of writing. To check the latest information click on the highlighted product.

Home Loans:

While the lowest home loan rates are unchanged from last month we continue to see more lenders cutting rates than increasing them, meaning there are lots of good options from a wide range of lenders.

Variable rates

AMP introduced a rate discount of 20bp for owner occupiers borrowing more than $500k with its Essentials Home Loan, now 3.78%.

Bank Australia dropped its Basic Home Loan rate (for owner occupiers) from 3.73% to 3.59%.

loans.com.au reduced its owner occupier rates by 12bp, to 3.59% for the Essentials and 3.67% for the Offset.

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

Reduce Home Loans – 3.35%

loans.com.au – 3.39%

Fixed rates

Longer terms are attracting the largest cuts for fixed rates as lenders seek to lock new customers in for a longer period. My Credit Union introduced a 3 year fixed rate at 3.49%, the lowest for the term. Other new three year rates worth noting are ING Direct’s 3.59% and Suncorp’s 3.64%. ING Direct is also now offering 3.89% for 4 years and 3.84% for 5 years.

The best fixed rates are:

1 year – 3.59% from Greater Bank and QT Mutual Bank

2 years – 3.59% from QT Mutual Bank

3 years – 3.49% from My Credit Union

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:

Commonwealth Bank cut the rate on its Low Rate and Low Rate Gold cards from 13.49% to 13.24%, and is also offering $250 cashback when new customers spend more than $500 on either of these cards before the end of December.

Introductory purchase rates on credit cards tend to become more common in the lead-up to Christmas and this year is no different. ANZ has a combination of an interest free period and cashback offers on its Low Rate and Low Rate Platinum cards. Both offer no interest on purchases for the first 6 months, and $100 cashback on the Low Rate or $250 cashback on the Low Rate Platinum card.

To get 0% for 15 months on purchases try the Coles No Annual fee MasterCard, or take your pick of any of NAB’s credit card range.

Police Credit Union launched a new credit card and it has the lowest rate available at 6.99%. The card also has no annual fee, however if you are used to paying your card in full each month to avoid interest charges this isn’t the card for you as it doesn’t have any ‘interest free days’ at all.

The next lowest credit card purchase rate is 8.99% on Bankwest’s Breeze range of cards, and Community First’s McGrath Pink Visa. The longest 0% balance transfer period is 24 months on Citibank’s Platinum card and the American Express Explorer card is offering the most bonus points at 100,000.

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 great new rates for personal loans this month, one for a general purpose unsecured loan and the other for a secured car loan.

Commonwealth Bank has cut the fixed rate on its Unsecured Personal Loan from 13.90% to 12.40%, available until 4 December. The variable rate remains unchanged at 13.90%.

Greater Bank cut its New Car Loan rate by 0.50% to 5.99%.

The top 3 rates for secured loans are:

loans.com.au – Car Loan – 4.69%

Police Credit Union – Fixed Car Loan 4.99%

loans.com.au – Used Car Loan – 5.19%

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

Term Deposits:

Most changes to term deposit rates this month were cuts as all deposit rates continue to go down, however ME is once again offering some of the best short term rates available.

ME increased its 6 month rate by 25bp to 3.10%, and its 9 month rate by 50bp to 3.00%, both now best for their respective terms and the best rates for any terms less than one year.

ANZ increased most short term rates by up to 50bp, however its best rate for less than one year is its 6 month rate, unchanged at 2.20%. Westpac reduced rates for longer terms with its 1 year rate down 50bp to 2.50%, its 2 year rate down 10bp to 3.00%, its 3 year rate down 10bp to 3.10% and its 5 year rate down 25bp to 2.85%.

The best rate for 1 year is 3.05% available from Big Sky and QT Mutual Bank, while the top 2 year rate is 3.20% from ANZ and People’s Choice Credit Union.

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

Savings accounts:

We saw no rate increases at all last month. RAMS still has the top ongoing bonus rate unchanged at 3.15%, but the next best ongoing bonus rate is ME’s 3.05%, down 0.05% from last month. The highest introductory rate last month has also been reduced. Australian Unity’s 3.15% on its Easy Saver is down 0.05% to 3.10%, paid for the first 4 months.

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 RaboDirect’s 3.20%.

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 – October 2016 was last modified: November 2, 2016 by Peter Marshall

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