This week in banking - How to prepare for a cash rate cut

By Niko Iliakis ·

In this week’s banking recap, we brace ourselves for a potential RBA rate cut, and look at the latest moves from banks and providers that will affect you. 

What to do before a cash rate cut

You might not know it, but the cash rate plays a pretty big part in shaping your finances, not to mention the economy, so any talk of a cut is a big deal. And now that the federal election is out of the way, many are tipping June to be the month the RBA finally makes a move. But what are the sorts of things you should be doing in the lead-up to a cut? We provide some tips on how to prepare

Term deposits continue to trend downwards

With the interest rate environment set to drop in the coming months, dedicated savers might be eyeing term deposits as an attractive alternative to savings accounts. But if you were planning on scoring a decent rate, you better move quickly. Just this month, we saw 53 providers slash rates for term deposits.

According to Mozo Director Kirsty Lamont, “It’s vital to compare your options to ensure you lock in the best possible rate. By shopping around you can still lock in up to 2.70% for a 1-year term or up to 3.00% for terms of 3 or more years.”

Are credit card late fees hurting your budget?

Does the sting of credit card late fees seem much more painful nowadays? That’s because late fees on many cards have jumped up by as much as 200% in recent years. Ever since a ruling by the High Court in 2016, in which fees of $35 were found to be reasonable, we’ve seen a flurry of providers raising late fees on their credit cards. In fact, there were plenty of hikes this month alone, ranging between $10 and $30. 

Revamped Pension Loan Scheme to help older Aussies

The Federal government has announced the existing Pension Loan Scheme will be getting a facelift. Starting on July 1, eligible retirees will be able to access additional cash flow on top of their pension to help pay for things like care and support services. Our resident property expert, Steve Jovcevski, is optimistic it will help ease the financial stress of many older Australians.

“It can be a real challenge to get loan approval once you’ve retired, so with a fresh scheme like this, it’s likely they’ll be a number of seniors taking up the offer and able to not only keep their property but have the freedom to stay at home longer,” he said.

Need a refresher course on the NBN?

When it comes to the NBN, do you know your FTTC from FTTB? Whether you’ve made the switch already or are still waiting for rollout to reach your neighbourhood, it pays to be informed. Our NBN guide details everything you need to know about the National Broadband Network and what it has to offer. 

ING joins the rate cut party

On the home loan front, ING has cut rates for its Orange Advantage and Mortgage Simplifier home loans by 17 basis points. Owner occupiers borrowing between $500,000 and $999,999 will now be treated to a low 3.63% p.a. variable rate (3.66% p.a. comparison rate*) if they sign up for the ING Mortgage Simplifier home loan.

If you’re wondering how those rates stack up against offerings from other providers, we’ve assembled some options below for you to peruse. And if you want a more comprehensive overview, be sure to check out our variable rate home loan comparison page.

Home loan comparisons on Mozo - last updated February 20, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    variable rate
    comparison rate
    1.99% p.a.variable for 12 months and then 2.48% p.a.
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

    Compare
    Details
  • mini-meca-2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.19% p.a.
    2.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

    Compare
    Details
  • mini-meca-2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.34% p.a.
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    Compare
    Details
  • Discounted Variable Home Loan

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.94% p.a.
    3.34% p.a.

    Enjoy a great low rate with no ongoing fees. Ability to split your loan between fixed and variable. 100% offset account. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.

    Compare
    Details
  • Well Balanced

    Owner Occupier, Principal & Interest, LVR <80%

    variable rate
    comparison rate
    2.17% p.a.
    2.20% p.a.

    Well Balanced home loan is a low rate home loan with free online redraw and no valuation fee. Purchase, Refinance or Equity Release purposes allowed.

    Compare
    Details
  • Basic Home Loan

    Owner Occupier, LVR<80%, Principal & Interest

    variable rate
    comparison rate
    2.64% p.a.
    2.64% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    Compare
    Details
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*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.

^See information about the Mozo Experts Choice Home Loans Awards

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.