Rethinking money priorities in 2021

Two Indigenous Australian woman sit on sofa, looking at a tablet and reviewing finances.

Over the past year a lot of plans have either been cancelled, delayed or put on pause. Indeed, there’s a high chance that your money priorities look considerably different now compared to this time last January.

Maybe you had big plans to travel or live overseas. If that was the case then you might have decided to bump up other priorities such as buying a house, a car or landing your dream job. To help you with this, we’ve come up with a short list of home loans and car loans. We’ve even included a few savings accounts, in case you still want to save for future travel.

Some home loan options

Basic Home Loan (Fixed, Owner Occupier, Principal & Interest, LVR 70-80%)
  • 2.09% 3-year-fixed rate (2.43% comparison rate*)
  • Free extra repayments and redraw facility

While house prices may be high, interest rates are the lowest they have ever been. So there is potential to cut down repayments considerably with a low interest home loan. One such loan is Macquarie Bank’s Basic Home Loan. It comes with a fixed 3-year-rate as low as 2.09% p.a. (2.43% p.a. comparison rate*) for borrowers with a 30% deposit. Or if you don’t quite have that much to put down, rates start from 2.19% p.a. (2.53% p.a. comparison rate*) for borrowers with a 20% deposit. You can make free extra repayments and there’s a free redraw facility. Just bear in mind that there is a $400 discharge fee.

Back to Basics Special (LVR<90%, Owner Occupier, Principal & Interest)
  • 2.54% variable rate (2.55% comparison rate*)
  • No loan establishment fee
Find out more

If your deposit is a bit smaller, you may instead be more interested in a loan such as Suncorp’s Back to Basics. This loan comes with a 2.54% p.a. variable interest rate for 80% LVRs (2.55% p.a. comparison rate*), or a 2.69% p.a. variable interest rate for 90% LVRs (2.70% comparison rate*). This means that if you only have a 10% deposit you can still get a loan. Just keep in mind that for deposits less than 20% you will have to pay lenders mortgage insurance. You can borrow a minimum of $150,000 and there is no maximum amount. There are no loan establishment fees, but there is a $350 discharge fee.

For more low deposit home loans, check out Mozo’s low deposit home loans comparison page.

A few car loans on offer

New Car Loan (Including Demo, Fixed, Secured)
  • Low 4.67% p.a. interest rate (5.22% p.a. comparison rate*)
  • Borrow between $5,000 and $100,000

If you’ve decided to get yourself a set of wheels, then you may be interested in’s New Car Loan. This particular loan is for a new car and comes with a low, fixed interest rate of 4.67% p.a. (5.22% p.a. comparison rate*). You can borrow between $5,000 and $100,000 and make repayments weekly, fortnightly or monthly. Loan terms are available between three and five years. Extra repayments are allowed, but you should keep in mind that there is a $700 early repayment penalty. There is also a $400 upfront fee to take into account.

Car Loan (Up to 5 years old, Fixed, Secured)
  • Interest rates fixed from 4.89% p.a. (5.53% p.a. comparison rate*)
  • Available for new or used vehicles, up to 5 years old
Find out more

You may have your eyes on a second hand car. If that’s the case then you’ll be happy to hear that there are a number of used car loans available. One of these is Heritage Bank’s Car Loan. This can be used to finance both new and used vehicles up to 5 years old. It comes with a fixed interest rate from 4.89% p.a. (5.53% p.a. comparison rate*). You can borrow between $5,000 and $100,000 and loan terms are available between 1 and 7 years. You can make repayments weekly, fortnightly or monthly and extra repayments are allowed. It should be noted that there is a monthly $5 service fee and a $200 upfront, application fee.

Head to Mozo’s compare car loans page for more options to finance your vehicle.

A couple of savings accounts to think about

Bonus Saver Account
  • 1.20% p.a. maximum interest rate
  • No account keeping fees

Instead of buying a car or a home, you might be keen to save your hard earned dollars. If so, why not take a look at MyState Bank’s Bonus Saver Account. The account comes with a competitive bonus interest rate of 1.20% p.a. (0.10% p.a. base rate). To earn this bonus interest rate, each month you will have to deposit at least $20 and make five Visa debit transactions via a linked MyState Bank Everyday Account or Glide Account. Plus, MyState Bank recently introduced a number of new features to help you keep track of your money. These include personalised insights and auto savings.

Saver Account
  • 1.10% p.a. maximum interest rate
  • Optional round-up feature
Find out more

Neobank Up’s Saver Account comes with a maximum 1.10% interest rate, which is available for balances up to $1 million. To achieve the full rate you will also have to make at least five successful card purchases each month through your linked Up Bank Everyday Account. Otherwise the interest rate will fall to 0%. There is also an optional roundup feature, to help boost your savings. If you opt for this, every time you make a purchase with your linked transaction account Up will round-up the difference and deposit it into your savings account!

For more options to store your rainy day fund, head to Mozo’s compare savings accounts page.

Or, if you want more ideas on how to get on top of your money, check out our article: 5 easy savings tactics to try in 2021. Here’s to reaching all our money goals this year!

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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