Mozo Banking Roundup, November 2020

By Peter Marshall ·

With less than a month to go before we bid farewell to 2020, many lenders are taking the opportunity to sharpen their offers across home loans and credit cards. Fixed home loan rates in particular have officially hit record lows with many sitting before the 2% mark. And while only a handful of lenders chose to pass on the most recent RBA rate cut, Mozo’s database recorded 44 cuts to ongoing savings rates. 

For a more comprehensive look at all the banking movements recorded during November, read on for this month’s installment of the Mozo Banking Roundup.

Key facts

Many lenders left variable Home Loan rates untouched following the RBA’s rate cut announcement. But the other measures announced by the RBA at the same time drove fixed rates to new lows with rates up to 3 years at 1.89% and as low as 1.99% for 5 years. 

A range of changes to Credit Card offers to report this month, along with a reduced interest rate for one card. 

A quiet month for Personal Loans with just a few providers making cuts to rates, but also a couple increasing rates. 

No surprise that there were plenty of cuts to At Call Deposit rates, but what was a surprise is just how big the cuts were to introductory specials. 

Most Term Deposit issuers cut rates across all terms, driving the average 1 year rate down to just 0.65%. One provider still offers 1.95% for 9 months or up to 1.25% for long terms.

Home Loans

Around one third of the lenders in the Mozo database passed on some or all of the RBA’s cash rate cut to variable rate loans, dropping the average variable rate for owner occupiers 3bp to 3.31%. There was more action on the fixed rate front, where rates below 2.00% are now easy to find, even for terms as long as 5 years. The average 2 year fixed rate for owner occupiers is down 13bp to 2.35%.

Variable rates

The majority of the 96 lenders in the Mozo database, including the big 4 banks, opted out of providing borrowers variable rate reductions. However, 33 lenders made cuts to many of their variable rates, 15 of which passed on 15bp or greater to borrowers, as follows: Athena (15bp), Freedomlend (20bp), GMCU (15bp), Goldfields Money (15bp), (15bp), Homestar (15bp), ME (15bp), MOVE Bank (15bp), MyState Bank (20bp), Pacific Mortgage Group (16bp), Qudos Bank (34bp), Reduce Home Loans (15bp), Resi (15bp), SWSCU (15bp), UBank (15bp), and Yellow Brick Road (15bp). 

The most competitive rates in the Mozo database fell to new record lows. For owner occupiers, with a 20% deposit, 1.99% variable (2.05% comp rate*) is now on offer from Reduce Home Loans. With an LVR of 60%, that rate drops to 1.77% (1.83%) from the same lender.

Fixed rates

While the big 4 banks did not pass on variable rates following the reserve bank announcements, they were keen to further reduce their fixed rates for owner occupiers. 

cut 20 to 40bp on both its packaged and standard fixed rates. 

Commonwealth Bank
focused on longer term offerings, cut a full 100bp for 4 year terms (now 1.99%, 3.66% comp rate*, packaged) and cut 10 to 15bp on 1 to 3 year terms. 

followed suit, cutting 81bp on 4 years terms, to just 1bp less than the CBA at 1.98% (3.69% comp rate*, packaged), and also passed on 10 to 20bp cuts on shorter terms. 

was the only one of the big 4 to make reductions to both owner occupied and investment fixed lending rates, cutting between 10 and 80bp across all terms. While only available with an LVR less than 70%, their best offering is a 4 year 1.89% (3.19% comp rate*) for owner occupiers.

For the rest of the market, the largest wide-ranging fixed rates cuts in response the the RBA cash rate target were observed from: AMP Bank (22-70bp), Bendigo Bank(5-110bp), Defence Bank (30-110bp), Greater Bank (10-70bp), ING (5-50bp), Newcastle Permanent (1-111bp), RACQ Bank (10-50bp), St.George Group (20-80bp), Teachers Mutual Bank (14-84bp) and Virgin Money (20-60bp).

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

A very mixed bunch of Credit Card changes this month with bonus points changes, extended balance transfer offers, a new introductory rate and just one rate cut. 

American Express
increased the bonus points available on its Explorer Card from 50,000 to 120,000, plus another 30,000 at the start of the second year. The Platinum Edge Card incentive swapped from $150 cash back to 50,000 bonus points. For the Velocity Platinum Card the bonus has been boosted from 50,000 points to 100,000, plus 75 status credits and $100 cash back. The Qantas Premium Card offer was changed from 100,000 bonus points and 50 status credits to 30,000 bonus points only. 

Auswide Bank
cut the rate on its Low Rate Visa by 15bp, now 8.05%.

The Coles No Annual Fee Mastercard gained a 0% for 12 months introductory purchase rate while the 0% for 18 months BT period was reduced from 18 to 12 months. The Rewards Mastercard now has the annual fee waived for the first year. 

Heritage Bank
now has a 0% for 12 months BT period on both its Gold Low Rate and Platinum cards. 

increased the 0% for 22 months BT offer to 26 months on its Platinum Credit Card and is instead now offering the choice between the Balance Transfer term or 84,000 bonus Rewards Plus Points on the same card.

Kogan Money
increased the 0% BT period available on its Black Card from 12 to 18 months, at the same time lifting the credit available from $300 to $500. 

The St.George group removed the 0% for 7 months introductory purchase rate from its Vertigo card, and increased the 0% BT offer from 22 to 24 months. 

The Bank of Melbourne and BankSA Vertigo Platinum cards now offer a $300 cashback while St. George customers have the choice of the cashback or a 0% purchase rate for the first 15 months and discounted annual fee in the first year. 

Virgin Money
trimmed the 0% BT period on its Low Rate Card from 18 months to 15 months.

Personal Loans

Once again there are only a handful of changes to report, and while most changes were cuts, there were a couple of rate increases as well. 

Australian Military Bank
increased rates on it range of loans with its Car Loan starting rate now 3.99% (4.90% comp rate*) up 39bp, its Unsecured Green Loan now 3.65% (4.59% comp rate*) up 50bp and its Unsecured Personal Loan now 5.35% (6.21% comp rate*) up 50bp. 

took 50bp off the fixed rate for its Unsecured Personal Loan, now 9.39% (9.64% comp rate*). 

Goldfields Money
cut 15bp off the rates for a range of loans including its Car Loan, now 5.44% (6.07% comp rate*) and Unsecured Personal Loan, now 12.44% (12.66% comp rate*). 

cut 30bp off its New Car Loan rate, now 4.59% (4.86% comp rate*). 

Qudos Bank
reduced the rate on its Qantas Points Car Loan by 60bp, now 6.99% (7.20% comp rate*). 

The St.George Group lifted variable Unsecured Personal Loan rates by 150bp to 12.99% (14.06% comp rate*). The fixed option remains at 11.49% (12.57% comp rate*).

*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

Unsurprisingly, rates for at call deposits fell further following the cash rate reduction. We recorded 44 cuts to ongoing bonus rates with an average reduction of 16bp, and 16 cuts to introductory bonus rates averaging 23bp. 

86 400
took 15bp off the ongoing bonus rate on its Save Account, now 1.20%. 

cut both the ongoing bonus rate on its Progress Saver and the introductory rate on its Online Saver by 20bp, now 0.50% and 0.45% respectively. 

Commonwealth Bank cut 15bp off the GoalSaver ongoing bonus rate for balances up to $50k, now 0.45%, and 20bp off the rate for larger balances, now 0.55%. Its NetBank Saver intro rate is down 15bp to 0.60%. 

dropped its headline rates by 15bp taking its Reward Saver ongoing bonus rate to 0.55% and iSaver introductory rate to 0.60%. 

HISA introductory rate is down 25bp to 1.75%, but remains the highest introductory rate in the Mozo database. 

Saver Account ongoing bonus rate is down 50bp to 1.10%. 

premium ongoing bonus rate is down 15bp to 1.31%. 

cut 20bp off its Life ongoing bonus rate, now 0.55%, and the same off its eSaver introductory rate, now 0.55%.

Term Deposits

The majority of term deposit issuers made cuts to rates in the last month, with the Mozo database recording 71 of 86 providers acting to reduce rates. 

In total, we recorded 785 cuts across all terms with an average reduction of 13.7bp. 

The average 1 year term deposit rate fell 11bp to 0.65% during November. 

The reaction to the November 15bp cash rate target cut from Australia’s largest banks included: ANZ cut 20bp from all terms, Commonwealth Bank and NAB applied a mix of 5, 10 and 15bp cuts across the board, while Westpac reduced by 5 to 25bp across all terms. 

The largest across the board cuts were observed from: Australian Unity (15-30bp), BankVic (10-40bp), ING (2-23bp), Newcastle Permanent (5-30bp), People’s Choice Credit Union (10-20bp), Police Credit Union (20bp), Rabobank (20-30bp), St.George Group (15-35bp) and Teachers Mutual Bank (20-25bp).

The content of this report is produced using Mozo's extensive database of banking products, which is updated every day. If you'd like access to more detailed information, please contact us at

Peter Marshall
Banking expert

Peter Marshall has been working in the Australian banking and finance industry for over 20 years and oversees Mozo’s extensive product database. He is regularly sought out for his expert commentary and analysis on banking and interest rates trends by print, radio and TV media.