This week in banking news - RBA, IMT, and the circular economy

In this week’s banking recap, we look at Tuesday’s RBA decision, the circular economy, and the ways that loyalty to the big banks is costing Australians.

RBA leaves the cash rate unchanged

Following its meeting earlier this week, the Reserve Bank announced it will be keeping official interest rates at 1.00% for another month. But with the economy currently stalling, more rate cuts in the near future are pretty much a certainty at this point.

“The persistent downside risks to the global economy combined with subdued inflation have led a number of central banks to reduce interest rates this year and further monetary easing is widely expected,” said RBA Governor, Philip Lowe.

Are you paying a convenience tax on your home loan?

When you’ve held your savings with the one bank all your life, it might be convenient to turn to them when it comes time to take out a home loan, but is it really the best call? A recent report by ASIC found that while 60% of Aussie home buyers stick with their existing bank when signing up for a mortgage, their loyalty isn’t always rewarded with lower rates.

Big banks overcharging on IMT

We aren’t just relying on our banks when it comes to home loans. They’re also first on the call sheet for Aussies looking to send money abroad or transfer between currencies. This comes via a new report from the ACCC, which found that opting for the big banks over alternative IMT providers is costing Australians hundreds of millions of dollars each year. With better deals available elsewhere, Aussies are being urged to shop around.

The circular economy: a way to save?

One of the big things holding people back from embracing sustainable living is that it’s not always cheap. But that doesn’t mean there aren’t ways to be kind to the planet and your wallet at the same time. This week, we took a look at the circular economy, and how borrowing, swapping, and buying pre-owned items make for a cost-effective way to help the environment.

Average household sitting on $5,300 in unwanted goods

On that note, if you’re looking to clear out your house of any unused goods, you might find you’re sitting on much more money than expected. According to Gumtree’s Second Hand Economy Report, the average Aussie household has around $5,300 worth of unused or unwanted items, adding up to a whopping $43 billion. 

Earn Velocity Points with the new Virgin Money home loan offer

Rewards points aficionados will appreciate the latest deal from Virgin Money. It’s currently offering customers who apply for its Reward Me Home Loan the chance to earn hundreds of thousands of bonus Velocity Points, just as long as they apply before November 29 this year. Borrow between $300,000 and $999,999 and you could be looking at 100,000 bonus Velocity Points. Take out a loan of more than $1 million and that number bumps up to 200,000.

If you’d like to see how that stacks up to other home loans on the market, be sure to visit our home loans comparison page, or check out the selection of quality offers below.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
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    Mozo Experts Choice 2021
    Smart Booster Home Loan

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

    interest rate
    comparison rate
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.85% p.a.
    fixed 3 years
    2.24% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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  • Hot DealFor a chance to win $100K towards your home loan, apply with Athena before Oct 31 & approved by Dec 15 (Please read the full T&C's)
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    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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    Details
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    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Apply Online & Refinance before 29 October 2021 for the chance to WIN your home loan interest free - Save up to $1.1 million. T&Cs apply.

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    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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    Details

*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, loan amount and term entered. 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.