Mozo Rates to Riches blog – May 2017

Mozo Rates to Riches blog – May 2017

Every month the Mozo Rate Chasers help you to 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 May and some may have changed since the time of writing. To check the latest information click on the highlighted product.

Home Loans:

Lenders continue to adjust mortgage pricing in response to regulatory changes around investor and interest only loan volumes. All four of the major banks announced they would limit interest only loans to a maximum LVR of 80%.

Commonwealth Bank has returned to the investor space after halting refinances from other lenders (except where the customer already had a CBA mortgage) back in February.

HSBC has ceased taking applications from investors, except from existing HSBC customers.

Variable rates

Commonwealth Bank lifted variable rates for owner occupiers making P&I (Principal & Interest) repayments by 3bp and for those making IO (Interest Only) repayments by 25bp. For investors making P&I repayments variable rates are up by 24bp, and for investors making IO repayments rates increased by 26bp.

ING Direct is offering $1,000 for loans refinanced to its Orange Advantage product for owner occupier loans of more than $300,000 with an LVR less than 80%, and making principal and interest repayments.

People’s Choice Credit Union lifted owner occupier P&I rates by 4bp and IO rates by 24bp. For investors P&I rates increased 25bp and IO rates increased 36bp.

St.George (and BankSA/Bank of Melbourne) left rates unchanged for owner occupiers making P&I repayments but for those wanting IO repayments rates are up 8bp. For investors P&I rates are up 23bp and IO rates up 31bp.

Fixed rates

We recorded more cuts than increases for owner occupier fixed rates during the month with the majority of the rate reduction applied to 3 year terms. For investors the story is quite different with increases heavily outweighing cuts, although again there were still quite a few reductions to 3 year rates. The best 4 and 5 year rates are both higher than last month.

Greater Bank reduced some rates on its Discounted Ultimate loan for owner occupiers. 1 year is unchanged at 3.59% (and remains best rate for the term) but the two year rate is down 10bp to 3.79%, 3 years down 15bp to 3.84%, 4 years down 10bp to 4.19%, and 5 years down 20bp to 4.19%.

NAB improved some P&I rates for both owner occupiers and investors. For owner occupiers its 2 year term is down 10bp to 3.88% and 3 year term down 15bp to 3.94%. For investors its 2 year term dropped 31bp to 3.88% and 3 year term went down 5bp to 4.24%. However for interest only loans rates were increased across all terms, the largest of which were applied to the two year term for both owner occupiers and investors – the OO rate is up 41bp to 4.49% and the investor rate is up 20bp 4.49%.

The best fixed rates are:

1 year – 3.59% from Greater Bank

2 years – 3.64% from Newcastle Permanent

3 years – 3.59% from Easy Street

4 years – 4.04% from Homestar

5 years – 4.17% 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:

American Express doubled the bonus points on offer on its Velocity Platinum to 100,000. Bonus points on other cards were reduced or removed such as its Explorer Credit Card where the bonus points were halved to 50,000 and the Qantas Ultimate Card where bonus points have been reduced from 75,000 to 50,000 and the 75 bonus status credits removed.

ANZ replaced its previous $250 Westfield gift card offer with bonus points on its Rewards card range with the standard card now offering 25,000 points, the Platinum 50,000 points and the Black 75,000 points.

Bankwest has added bonus rewards points to its More Mastercard range with 19,500 available on the standard card, 75,000 on the Platinum card and 115,000 on the World card. Introductory bonus points are paid after an initial spend criteria is met, and the same number of bonus points can be earned every year that a total annual spend criteria is met.

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

Personal Loans:

Car loan rates were reduced by a few lenders but general purpose personal loans saw more rate increases than reductions.

ANZ dropped the rate on its Online Secured Car Loan from 6.99% to 6.59%.

Citi increased the 2 year introductory rate on its Ready Credit loan from 7.90% to 9.90% and halved the up-front fee from $149 to $74.50.

Commonwealth Bank reduced the fixed rate on its Unsecured Personal Loan from 13.70% to 12.70%.

Lattitude increased its Low Rate Personal Loan rate from 9.99% to 10.99%.

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:

While rates for at call accounts have held up so far this year, rates for term deposits keep heading down, however a few providers increased key rates.

Westpac dropped key rates to be more in line with its major bank competitors while Commonwealth Bank now has the best rate from a major bank for terms of less than a year.

Commonwealth Bank increased its 11 month rate by 70bp to 2.50%, the best rate available from any major bank for less than 1 year.

Maitland Mutual was one of few providers that bucked the downward trend by increasing rates across a number of terms. While not quite the best rates for their terms, its 3, 6 and 12 month rates are all up 10bp, now 2.60%, 2.70%, and 2.80% respectively. Maitland Mutual also increased its 3 year rate, up 10bp to 3.40%, now best for the term.

Westpac reduced its 4 and 5 month rates by 15bp to 1.85%, its 7, 8, 9 and 11 month rates by 10bp to 1.90% and its 7 month rate by 70bp, also to 1.90%. For longer terms the bank’s 3 year rate is down 60bp to 2.50% and its 4 year rate down 10bp to 2.60%.

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

Savings accounts:

Barely any changes to at call rates this month but one major bank dropped its best ongoing rate while two others reduced the rate applicable after the end of a high interest introductory period.

ANZ left the introductory rate on its Online Saver account at 2.55% but dropped the ongoing rate by 15bp to 1.00%.

Commonwealth Bank took the ongoing bonus rate on its GoalSaver account down 10bp to 1.70% on balances up to $50,000, while increasing the rate on balances over $250,000 by 10bp to 1.90%.

Westpac made a move similar to ANZ, leaving the introductory rate on its eSaver untouched at 2.51% but taking the base rate down 5bp to 1.00%.

Find the best savings rates including any hoops that must be jumped through to qualify for them using Mozo’s Savings Account Compare tool.

Mozo Rates to Riches blog – May 2017 was last modified: June 2, 2017 by Peter Marshall

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