Mozo Banking Roundup, January 2021

While other industries might like to start the new year with a bang, it seems that the banking industry does not. Over January, the Mozo database saw minor adjustments to variable home loan rates, credit cards and and at-call deposits. 

Fixed home loan rates on the other hand continue to dominate market movements, with one major banking in particular now offering the lowest rates for any fixed term. 

For a more detailed look at all the changes that the Mozo database recorded over the last month, read on for our January 2021 edition of the Mozo Banking Roundup.

Key facts

A range of lenders have tweaked variable ​Home Loan rates, but the real competition continues to be in fixed rates which seem to fall to new lows every month. A major bank subsidiary now offers the lowest in our database for any fixed term.

A handful of changes to ​Credit Card offers to report, along with the withdrawal of one card from the market.

Several providers have cut rates on various ​Personal Loans​, all of them fixed, plus one of the major banks is waiving its application fee.

The pace of ​At Call Deposit ​rate cuts has slowed at last. Most of the cuts recently have been driving down ongoing bonus rates.

While the volume of cuts has also slowed for ​Term Deposit ​rates, we still recorded 36 of the providers tracked by the Mozo database reducing rates which saw the average 1 year rate fall once again.

Home Loans

Since we last reported, just before the holiday break, the real action continues to be in fixed rates where the battle for bragging rights (and headlines) for the lowest rates continues.

Variable rates

Aussie made cuts of between 24 and 95bp to the rates on its Activate Prime loan for owner occupiers. It now offers 2.45% (2.48% comp rate*) for LVR’s up to 75%, 2.59% (2.62% comp rate*) for up to 80%, and 2.89% (2.92% comp rate*) for anything higher.

Freedomlend
trimmed its range of variable rates with reductions of between2bpand 12bp. Owner occupier rates now at 2.17%(2.17% comp rate*) for an LVR <80%.

ME
reduced several rates offered under its Flexible Home Loan. For owner occupiers with an LVR below 80% rates start from 2.49% (2.95% comp rate*).

Fixed rates

Gateway Bank ​reduced its 3 year rate for owner occupiers under its premium Package by 15bp to 2.04% (3.27% comp rate*).

ME
​reduced its range of investment fixed rates by 29-40bp.

Newcastle Permanent
cut its range of 4 year fixed rates by 19bp, but increased its 5 year terms 20bp. As a part of its Special pricing in the Premium Plus Package, rates are now 1.99% (3.46% comp rate*) and 2.19% (3.43% comp rate*) for 4 and 5 year terms respectively.

After making cuts of between 5bp and 20bp ​P&N Bank now offers rates of 1.99% for terms from 1 (3.71% comp rate*) to 4 years (3.27% comp rate*). The 5 year rate is at 2.39% (3.29% comp rate*) .

UBank
cut between 15 and 35 basis points on its range of fixed lending options at 1, 3 and 5 years. It now offers the most competitive 3 year fixed rate owner occupier loan on the market at 1.75% (2.22% comp rate*) on its UHomeLoan product.

*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.

Credit Cards

Only a handful of changes to offers to report, and all are from American Express.

American Express ​made changes to a range of bonus points offers. The Explorer Credit Card had its bonus points reduced from 120,000 to 50,000 and removed the additional 30,000 paid at the start of the second year. The Platinum Edge Card was offering 50,000 bonus points but that offer has been removed. Bonus points on the Qantas Premium Card were more than doubled, up from 30,000 to 80,000. The Qantas Ultimate Card also had its bonus points increased, up from 55,000 to 100,000.

Citi ​withdrew the Premier Card from its product range.

Personal Loans

Very few changes to report for personal Loans, and the few rates that were adjusted were all fixed with variable rates being left untouched.

Beyond Bank
reduced rates on its Environmental range of options by 50bp. The unsecured Flexi Personal Loan is now at 12.24% (12.50% comp rate*), the secured No Fee personal Loan is at 7.24% (7.24% comp rate*) and the Low Rate Personal Loan is at 6.24% (6.93% comp rate*), all with an environmental purpose eligibility requirement.

Hume Bank
cut rates on both its Unsecured Personal Loan and Secured Personal Loan by 100bp, now 8.95% (9.17% comp rate*) and 4.95% (5.16% comp rate*) respectively.

NAB
is waiving the $150 fee on its unsecured Personal Loan until the end of March.

RAA
reduced rates on its car Loan by 25bp, now starting from 5.20% (5.55% comp rate*) for members and 6.20% (6.69% comp rate*) for non-members.

*WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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.

At-Call Deposits

While there were fewer cuts to At Call Deposit rates last month than we’ve seen for a while there were still quite a few rates reduced, particularly ongoing bonus rates.

Bank Australia
reduced the ongoing bonus rate on its Bonus Saver account by 20bp, now 0.60%.

Bank of us
cut the ongoing bonus rate on its Save up account from 0.80% to 0.50%.

Commonwealth Bank
trimmed 5bp off the introductory rate on its NetBank Saver, now 0.50%.

CUA
​ cut the ongoing bonus rate on its eSaver by 25bp, now 0.95%. Greater Bank​’s Bonus Saver had its ongoing bonus rate cut by 15bp to 0.60%.

MyState Bank
cut its Bonus Saver Account’s ongoing bonus rate by 15bp to 1.20%.

NAB
​cut 15bp from both the iSaver introductory bonus rate to 0.45% and the Reward Saver ongoing bonus, now 0.40%.

The ​St.George Group dropped both the ongoing bonus rate on its Incentive Saver Account and the introductory rate on its Maxi Saver by 15bp to 0.45%.

Teachers Mutual Bank
and and its sub-brands reduced the ongoing bonus rate on its Reward Saver Account by 15bp to 0.85%

Westpac
cut 15bp off the ongoing bonus rate on its Life account, and the introductory rate on its eSaver account, both now at 0.40%.

Term Deposits

While volumes have been lower than in previous months, term deposit rates continue to fall with 382 cuts from 36 banks. The average rate for a 12 month term is down 4bp to 0.58%.

ANZ ​made reductions of 5-20bp on selected terms, Commonwealth Bank ​cut 5-10bp on all terms 6 months or greater, while ​Westpac ​cut 5-15bp on all available terms. ​NAB ​did not adjust term deposit rates during the period.

Highlights from the remainder of the market include: ​Bank Australia ​(10-15bp on all terms, except for its 3 year term which received a 10bp increase), ​Credit Union SA (15bp cuts), ​Greater Bank ​(10-15bp cuts), ​HSBC (5-15bp cuts), ​MOVE Bank (10-20bp cuts), ​Qudos Bank (20bp), ​St.George Group (5-15bp), ​Suncorp (5-25bp cuts, 15bp and 20bp increases on 3 and 6 month terms) and The Mutual Bank (5-20bp cuts). ​Judo Bank ​increased rates for terms up to 1 year by 15bp and cut 2, 3 and 5 year rate terms by 10bp to 1.20%.

The content of this report is produced using Mozo's extensive database of banking products, which is updated everyday. 

If you'd like access to more detailed information, please contact us at data.services@mozo.com.au.