Mozo Rates to Riches blog – January 2017

Mozo Rates to Riches blog – January 2017

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

Home Loans:

Last month we reported that lenders were increasing variable rates with a focus on investors. That trend has continued however we’ve seen more rate rises also applied to owner occupier borrowers.

The majority of fixed rate changes have been increases, with any rate reductions largely applying to shorter fixed terms. Last month the best 5 year fixed rate was 3.99%, but it’s now 4.03%.

Variable rates

  • AMP: increased rates for investors by 15bp, and for owner occupiers the Essential Home Loan rate is now up 11bp to 3.89%.
  • Auswide Bank: cut the rates on its Special Discount Home Loan Plus to 3.79% for owner occupiers (down 20bp) and 3.99% for investors (down 19bp).
  • Bank of Queensland: increased all of its variable rates by 15bp, now starting from 4.35%.
  • HSBC: increased investor rates by 10bp while the owner occupier rate on its Home Value Loan is up 107bp to 4.62%.
  • Bankwest: increased variable rates for investors by 20bp, and introduced a new product. The Equaliser loan is priced at a discount from the average standard variable rates of ANZ, NAB and Westpac. The owner occupier discount is 1.35% and the investor discount is 1.00% with rates currently at 4.25% for owner occupiers and 4.72% for investors.
  • ME: increased most rates by 10bp, except low LVR owner occupier rates which are up 5bp and some investor rates for loans less than $700k up 15bp.
  • SCU: cut its Basic Home Loan rate by 72bp to 3.77%, Suncorp increased its variable rates by 15bp, now starting from 4.17%.

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

Fixed rates

For owner occupiers ANZ increased its 2 year rate by 23bp to 3.98% and the 3 year by 34bp to 4.19% while the 4 year rate is down 10bp to 4.49%. For investors the 2 year rate is up 20bp to 4.19% and the 3 year up 40bp to 4.39% while the 4 year rate is down 20bp to 4.79%.

CUA increased both 1 and 2 year rates by 15bp to 3.84% and its 3 year rate by 7bp to 3.96%.

NAB cut its 1 year rate for owner occupiers by 10bp to 3.89% but increased other terms with its 2 year rate up 23bp to 3.98%, its 3 year rate up 20bp 4.09% and its 4 year rate up 60bp to 4.59%. Investor rates are down 15bp to 3.99% for 1 year, up 29bp to 4.19% for 2 years, up 40bp to 4.29% for 3 years, up 80bp to 4 years and up 5bp for 5 years, both now 4.79%.

The best fixed rates are:

1 year – 3.59% from Greater Bank

2 years – 3.64% from Homestar

3 years – 3.59% from Easy Street

4 years – 3.75% from BCU

5 years – 4.03% from Gateway Credit Union

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:

Over January we have seen a few new credit cards enter the arena and a range of changes applied to honeymoon offers. Read on for details:

New cards in the market

  • NAB has added two cards to its range – the Rewards Classic and Rewards Platinum. Both earn points via NAB’s new in-house rewards program which doesn’t tie cardholders to the big airline rewards programs, but points can be transferred to several airline rewards programs or used to purchase flights via Webjet. The Classic card has an annual fee of $95, earns 0.75 points per dollar spent and bonus 40,000 rewards points. The Platinum card has an annual fee of $195, earns 1 point per dollar and comes with 80,000 bonus rewards points. The annual fee is waived on both cards for the first year.
  • American Express: has relaunched its Low Rate Card with a purchase rate of 11.99%, no annual fee and no rewards program. The card had been absent from AMEX’s line-up since March 2016.

Introductory offers

On all cards, Westpac changed the introductory purchase rate offer from 1% for 12 months to 0% for 6 months and reduced the 0% BT period from 16 to 12 months. The bank also introduced a 0% balance transfer for 24 months offer only available through affiliates, on its Low Rate Credit Card. Cardholders should keep in mind, the card comes with a 2% handling fee for balances transferred, and the introductory purchase rate period won’t apply.

Citibank extended the BT period on two of its cards to 15 months, from 12 months on its Classic card and from 9 months on its Simplicity card. However, 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 is for 12 months on Virgin Money’s Velocity Flyer Card.

Lowest credit card rate

The lowest credit card purchase rate is 6.99% on Police Credit Union’s recently launched SoLo Credit Card.

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

Personal Loans:

There were only a handful of rate changes to personal loans again this month, but more than we’ve seen in recent months. Large cuts to car loan rates by a couple of providers, but the rate leader moved up as did one of the big 4 banks.

  • ANZ: increased the rate on its Secured Car Loan by 25bp, now 6.40%.
  • Arab Bank Australia: added 15bp to the rates for its variable rate loans with the secured option now at 12.55% and unsecured at 15.25%.
  • Commonwealth Bank: cut its Secured Car Loan rate from 8.49% to 7.49%.
  • Heritage Bank: reduced its Car Loan rate from 8.99% to 7.99%, and is waiving the usual $200 application fee on all personal loans until the end of February.
  • loans.com.au: increased its New Car and Used Car loans by 50bp, now 5.44% and 5.94% respectively.

The top secured loan rate is Victoria Teachers Mutual Bank’s Discounted Green Car Loan at 5.29% 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:

The top rate for terms less than 1 year is down 5bp from last month at 2.85%, while the best rates for longer terms are unchanged except for a 3 year deposit which is up 10bp to 3.30% (the same as the best 5 year rate). For terms of one year or more there weren’t many changes, but unlike shorter terms the number of rate increases outnumbered cuts.

Term deposit rate changes

ANZ cut its 2 year rate from 3.20% to 2.60%, but longer terms are all up with 3 year increasing 35bp to 2.60%, 4 years up by 40bp to 2.70% and 5 years up 30bp to 2.80%.

CUA cut its 7 month rate by 35bp to 2.30%, but now has the equal best 8 month rate at 2.80% (up 50bp) and equal best rate for any term less than one year with its 11 month rate now at 2.85% (up 10bp).

ME increased its 6 and 7 month rates by 10bp taking its 6 month rate to 2.85% (equal best rate for any term less than one year) and its 7 month rate to 2.70%, while its 8 month rate is down 15bp to 2.70%, 10 months is up 20bp to 2.70% and 11 months down 10bp to 2.80%.

Best term deposit rates

Maitland Mutual now has the top 2 year rate at 3.20% and the top 3 year rate at 3.30%, both up 10bp from December.

Teachers Mutual Bank/Unibank now has the third best 4 month rate at 2.60% (up 20bp), the second best 6 month rate at 2.80% (up 30bp), and the best 1 year rate at 3.00% (up 10bp).

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

Savings accounts:

A challenger bank launched a triple account package with a savings rate of 3.00%. Rates continue to head south for savings at call, including 3 of the 4 major banks making cuts. The previous market leader is no more, leaving ME’s 3.05% as the top rate, followed by 3.00% from 5 providers.

New savings account launched

AMP launched a bundled package that includes two transactional and one savings accounts. The Bett3r Save Account offers an ongoing bonus rate of 3.00% and comes with a ‘Spend Account’ and a ‘Pay Account’ attached. The ‘Pay’ account is for salary deposit with the $5 monthly fee waived if more than $2,000 has been deposited, and this account pays 1.50% interest. Savings are transferred to the ‘Save’ account and money free for discretionary spending goes into the ‘Spend’ account.

Savings account changes

  • ANZ: reduced the introductory bonus rate on its Online Saver by 20bp to 2.65%.
  • Bank of Queensland: cut both its headline savings rates by 10bp, with the introductory bonus rate on its WebSavings account now 2.65% and the ongoing bonus rate on its Bonus Interest Saver now 2.20%.
  • Commonwealth Bank: took the introductory bonus rate on its NetBank Saver down 10bp to 2.50% and the ongoing bonus rate on its GoalSaver down 5bp to 1.80%.
  • RAMS: previous rate leader RAMS cut the ongoing bonus rate on its Saver Account by 15 bp to 3.00%, now equal second best rate available.
  • St.George group: dropped the introductory rate on its Maxi Saver by 25bp to 2.75%, and the ongoing bonus rate on its Incentive saver by 10bp to 1.75%.
  • Westpac: slashed its eSaver introductory rate 20bp to 2.51% and the ongoing bonus rate on its Reward saver 10bp to 1.75%.

Best ongoing bonus rate at the time of writing is from ME at 3.05%. 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 – January 2017 was last modified: February 1, 2017 by Peter Marshall

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