RBA rate cut, climate change, Christmas gift card: This week’s best banking news

By Polly Fleeting · · 4 min read
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Australian money in a jar cut interest rate
  • The Reserve Bank of Australia cuts its official cash rate to 0.1% 
  • Australia faces losing $3 trillion if no climate action is taken 
  • SendFX announces $100 gift card for money transfers 
  • Is a no annual fee or low interest credit card better? 
  • How to transfer your insurance policy when you buy a new car 
  • October 2020 Mozo Banking Roundup 

All in this week’s best banking news: editor’s pick.

RBA rate cut: Which banks have cut rates so far in November? 

On Tuesday, the Reserve Bank of Australia (RBA) dropped its official cash rate to 0.1%.

Unlike previous cuts where the board slashed rates by 25 basis points, this time they decided on 15 basis points instead. 

In response, there has been a major focus by home loan bank lenders on fixed rates rather than variable ones. 

So far, CommBank, NAB and Westpac have all announced reductions to fixed home loan rates, while ANZ has made no announcement. Similarly, banks like Bank of Melbourne, BankSA and St.George also cut fixed mortgage rates. 

Alternatively, online lenders turned their attention to variable rates, with Athena, FreedomLend, Homestar and homeloans.com.au announcing drops. 

Read full article: November RBA cut: Which banks have cut home loan rates? For a full rundown of products affected by the rate cut. 

More than $3 trillion could go down the drain if Australia doesn’t take climate action over the next 50 years 

The Australian economy could lose $3.4 trillion or more by 2070 if a sustainable way of growth isn’t prioritised, says Deloitte Access Economics. 

Fresh numbers from their report revealed a projection of 880,000 fewer jobs over the next 50 years as a number of industries face losses if carbon emissions continue unchecked. 

Those expected to be hit the hardest are the mining, manufacturing, tourism and service industries, each set to lose approximately $330 billion to $1.5 trillion in growth. 

SendFX gift customers $100 reward this Christmas

woman using SendFX gift card online

As Christmas approaches, international money transfer service SendFX is offering new customers a $100 EFTPOS gift card. 

Until the end of December, if you register for a free SendFX account and make transfers greater than $1,000 AUD you could receive the gift card.  

After you apply and make your first transfer, the card should arrive within 30 days or less. You can then redeem the $100 credit at any checkout that accepts EFTPOS. 

Read full article: Christmas is coming! SendFX announces $100 reward for your money transfer for more on SendFX. 

Credit card comparison: No annual fee vs Low interest rate

Don’t know if your current credit card fits quite right in your budget? It might be time to compare other options! 

This week, we weighed up no annual fee credit cards against low interest rate options. Here’s what we found: 

No annual fee: 

  • Good for someone who uses card sparingly and pays down balance month on month, as generally come with higher interest rate 

Low interest rate: 

  • Useful for a credit card user that doesn’t always pay down their balance in full. These cards can be handy for big purchases to pay down gradually, as rates are often below 14%. 

Read full article: No annual fee vs Low interest credit card, which is better? for some hot credit card deals to weigh up right now. 

Can I transfer my existing insurance policy to my new car?

man getting into his new car with same insurance policy

Buying a new car but don’t want to go through the fuss of getting fresh insurance? Well, your insurer might let you transfer your existing policy to your new vehicle. 

You can do this by calling up your insurer or changing the details of your car online. However, while it may just be a matter of listing a different car on your policy, it’s likely your premium will be affected. 

Things like the age, make and model of your new set of wheels all come into play as your insurer assesses how high or low your payments are going to be. 

Read full article: New car: Can I transfer my insurance policy? and find out if it is actually financially savvy to stay with your current policy or make the switch. 

Here’s Mozo’s monthly Banking Roundup: October 2020

With the anticipation of the RBA’s rate cut, lenders adjusted their product offerings over October. Here’s what happened over last month: 

  • Home loans: A number of lenders made cuts to both variable and fixed rates, plus CommBank withdrew some introductory rates. 
  • Credit cards: Bonus points offers were changed across a bunch of providers as well as balance transfer offers and the introduction of new cash incentives. 
  • Personal loans: Most cuts were in the fixed loan space and across car loan offerings, while CommBank introduced a discounted unsecured option. 
  • At call deposits: Rates keep declining across the board, with both major banks, challengers and neobanks making cuts. 
  • Term deposits: The top rate on the Mozo database for 12 months is 16 basis points lower than last month, while the average dropped by 7 basis points. 

    Want to compare home loans today? Check out the killer options below! Or if you just want to get your finances up to scratch this month, read our November 2020 Financial Checklist for all you need.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.