This week in banking - Moula, UBank and more

There’s plenty that goes on in Australian banking each week, so we don't blame you if you've fallen behind. Here’s our latest banking recap to get you all up to speed.

UBank unveils new Green Term Deposit

With the Earth lurching irrevocably toward environmental ruin, it’s somewhat comforting to know the occasional company is taking steps to combat climate change. This week UBank launched its Green Term Deposit, which joins a host of other ethical banking products that should appeal to the socially-conscious consumer.

The bank promises to match each balance to a portfolio for investing in environmentally-friendly initiatives, like wind and solar energy. And proving that going green doesn’t have to mean compromising value, you can expect returns of 2.65% p.a. if you lock away your funds for 7 months — plus a bonus 0.10% p.a. if you decide to renew.

Moula adds an extra $250 million to help small businesses

In the world of business loans, it’s well known that online lenders score well on speed and ease of application, and now a recent move by Moula hopes to put them on par with banks when it comes to scale.

The online lender has announced it will be injecting an additional $250 million to fund Australian small businesses, with pricing for loans starting at a low 15.95% p.a. And in a bid to increase borrower flexibility, Moula is also increasing its maximum loan amount from $250,000 to $500,000, as well as extending loan terms from 24 months to 36 months.

Online lenders set off home loans rate cut frenzy

Talk of home loans has centred around Athena and loans.com.au these past few weeks, with the two making headlines with their extraordinarily low (and near identical) rates. Now it seems we’re seeing a race to the bottom as a number of lenders scramble to attract borrowers.

Kogan Money, State Custodians, and Bank of Sydney are just some of the names that have been making cuts. Even NAB has decreased its Base Variable Home Loan special by 0.20%, leaving us wondering whether or not the other big banks will follow suit.

Variable home loans

Not all lenders have gotten the memo, though. Take BankFirst, which hiked rates for its Complete Home Loan for both owner occupiers and investors by 0.08%. Owner occupiers looking to take out a loan with an LVR below 80% will now have to pay 4.07% p.a. (4.12% comparison rate*) in interest.

BankVic has adjusted rates across several offerings for investors. Most notably, its Standard Variable Home Loan jumped up 0.20%, now offering a rate of 5.39% p.a. (5.44% p.a. comparison rate*).

Fixed home loans

This week, Resimac dropped rates across a range of its Ultra Plus products by 0.11%. And Bankwest’s 5 year Complete Fixed Home Loan Package for owner occupiers saw cuts of 0.55%, leaving it at 3.99% p.a. (4.49% comparison rate*). 

Term deposits

The downward trend in term deposits continues well into March. Macquarie made a number of cuts across its term deposit rate sheet, ranging from between 0.05% to 0.15%. Its best offers are now the 6, 9 and 12 month terms, which offer 2.70% p.a.

UBank also decreased rates for its 3, 4, 6, 9 and 12 month terms by 0.10%. Its one month term saw cuts of 0.20%, leaving it at 1.90% p.a. And Westpac made cuts of between 0.05% and 0.15% for term deposits up to 1 year. Longer terms also saw major cuts, with the 5 year rate plummeting 0.40%.

But it’s not all bad news, BoQ Specialist has increased rates for its 2, 3 and 4 year term deposits by up to 0.20%. Its 2 year rate now sits at 2.65% p.a. So if you’re looking to to see what kind of rates are available right now, be sure to check out our term deposit comparison page.

And if you were on the market for a home loan and all the talk of low rates has you willing to take the plunge, take a look at what’s available below.

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 25 July 2024 Important disclosures and comparison rate warning*
  • 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.

  • 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.

  • 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.

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.

* 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.