Mozo Rates to Riches blog – December 2016

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

Home Loans:

A range of providers increased variable rates during the month, and more have announced changes that aren’t yet implemented. Most have been focused on investor loans, however a few have applied increases to both investors and owner occupiers. 1 year fixed rates had an even split between increases and decreases, however for all other terms there were many increases and negligible cuts.

Variable rates

ANZ added 8bp to its variable investor rates, taking the total premium charged to 35bp on the bank’s Breakfree Package.

Bankwest increased variable rates for investors by 15bp, with the total premium now varying between 42bp and 62bp, depending on the loan.

Commonwealth Bank added 7bp to its investor premium on variable rate loans, now a total of 34bp. The bank increased some fixed rates, with 3 years up 20bp to 4.09% and 5 years up 60bp to 4.59%, while the 4 year rate is down 20bp to 4.39%.

ING Direct increased all variable rates by 15bp.

NAB added 15bp to its variable rates for investors taking the premium for principal and interest loans to 30bp and for interest only loans to 40bp.

Suncorp increased its investor premium by 15bp, now 47bp on its Standard Variable rate loan, while its Back to Basics Special is up 31bp, now 4.02% for owner occupiers and 4.29% for investors.

Westpac and its St.George group of brands introduced a premium of 8bp on interest only variable rate loans.

The best variable rate for owner occupiers borrowing up to 80% is Reduce Home Loans at 3.35%.

Fixed rates

Newcastle Permanent increased fixed rates for all terms, but of particular note are the 4 and 5 year rates, both up 100bp to 4.80%. The 5 year was best for the term last month but the best for 5 years now is 3.99%.

QT Mutual Bank had the equal best 1 year and the best 2 year fixed rates last month at 3.59%, but increased both of those 10bp.

The best fixed rates are:

1 year – 3.59% from Greater Bank

2 years – 3.64% from Homestar

3 years – 3.49% from My Credit Union

4 years – 3.75% from BCU

5 years – 3.99% from Bank Australia and 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:

This month saw rate increases on a few low rate cards, another ‘online only’ offer from a major bank, and two new low rate cards launched.

After cutting rates on its Breeze cards to 8.99% in August, this month Bankwest returned the rate on both cards to 12.99%. The balance transfer offer on both was changed from 2.99% for 9 months to 0% for 21 months, and the cards no longer have annual fees waived for the first year.

Citibank removed the 0% for 9 months balance transfer and introductory purchase rate on its Clear Platinum card.

Coles increased the rate on its Low Rate MasterCard from 9.99% to 12.99%.

CUA removed the 25,000 bonus points offer on its Platinum Credit Card.

Easy Street launched its first credit card products called the Easy Low Rate Visa Credit Card. The card has a rate of 8.99% and annual fee of $40.

NAB launched a Low Rate version of its Platinum card. The rate is the same 13.99% as the standard card, but the annual fee is $100 instead of $59, and has extras such as concierge and a variety of insurances. The bank also introduced an online only offer on its Premium Card with a 0% for 24 months balance transfer rate, attracting a one-off 3% fee.

The lowest credit card purchase rate is 6.99% on Police Credit Union’s recently launched SoLo Credit Card. The longest 0% balance transfer period is 24 months on Citibank’s Platinum card and NAB’s Premium Card (for online applications only) while the longest 0% introductory purchase rate can be had with any of NAB’s card range, or the Coles No Annual Fee MasterCard.

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 major banks increased unsecured personal loan rates while others were cutting them. Some of the largest rate reductions were made to car loans.

ANZ dropped the rate on its Online Car Loan from 6.80% to 6.15%.

Bank of Queensland cut the rate on its Unsecured Personal Loan from 13.90% to 12.39%.

Commonwealth Bank increased its Unsecured Personal Loan rate from 12.40% to 13.90%.

CUA cut its Unsecured Personal Loan rate from 12.99% to 11.89%.

Gateway Credit Union dropped its New Car Loan rate from 7.04% to 5.69%.

IMB Bank took its Car Loan rate down 35bp to 5.99%. The annual fee on all personal loans was increased by $51 to $250.

NAB increased its Personal Loan rates with the variable rate going from 13.69% to 14.69%, and the fixed going from 14.19% to 14.99%.

The top secured loan rate is loans.com.au’s New Car Loan at 4.94% and the best unsecured loan rate is G&C Mutual Bank’s fair Rate Personal Loan, available from 5.99%.

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

Term Deposits:

There was a more balanced mix of increases and decreases with far fewer rates reduced than we’ve seen in recent months. The top rate for terms of less than 1 year is now 2.90%, down from 2.95% last month and 3.10% at the end of October.

The best rate for 4 years went down from 3.20% last month to 3.10% this month following rate cuts by Big Sky and QT Mutual Bank.

Commonwealth Bank’s best rate for less than one year is still its 7 month term, but down 10bp to 2.10%. The bank’s 2 year rate is also down, from 2.45% to 2.30%.

NAB’s best rate for less than one year is still its 8 month term, but down from 2.40% to 2.20%.

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

Savings accounts:

Very few changes to at call deposit rates, and of those only one rate was increased.

ING Direct increased the ongoing bonus rate on its Savings Maximiser from 2.75% to 3.00%.

P&N Bank reduced the ongoing bonus rate on its SwiftSaver Account by 20bp to 2.00%.

RaboDirect cut the 4 month introductory rate on its High Interest Savings Account from 3.20% to 3.05%, but it remains the top short term bonus rate in the market.

Best ongoing bonus rate at the time of writing is RAMS at 3.15%. For a short term bonus the top rate is RaboDirect’s 3.05% for the first 4 months.

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 – December 2016 was last modified: December 23, 2016 by Peter Marshall

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