This week in banking - Prospa’s Billion Dollar Milestone

By Niko Iliakis ·

There was plenty going on in the world of Australian banking. Here are our top headlines from the past week, plus a look at key rate changes across home loans and term deposits.

Prospa hits $1 billion milestone

If there were ever a patron saint of business loans, it would be Prospa. The online lender has just cemented its position as one of the more popular options for business owners, announcing it’s delivered more than $1 billion in loans to small businesses across Australia and New Zealand. Just as impressive, Prospa also revealed it’s made a pretty sizeable contribution to the economy, adding $3.65 billion to Australia’s GDP. 

Do you have bank-xiety?

Does thinking about your bank leave you with an unshakeable sense of unease? You might have what ME Bank CEO, Jamie McPhee, calls ‘bank-xiety,’ and you’re not alone. A survey of 1,000 Aussies conducted by ME revealed that 95% believe banks lack transparency, and 92% believe that banks often push products and services that are inappropriate or unnecessary.

That said, not many Australians are doing anything about it. In fact, only 14% of those surveyed admitted they had switched banks, or were about to. If you’re among the many that were dismayed by the findings of the Royal Commission but have yet to dump their bank in favour of a more trustworthy one, don't put it off any longer.

Is another economic crisis around the corner?

With the current housing downturn yet to stabilise and levels of household debt reaching distressing highs, there’s a lot of talk about another crash potentially in the works. And while many remain skeptical, it doesn’t hurt to be prepared. We ran through some of the things the average Australian should do to make sure they’re able to stay afloat in case disaster strikes. 

Variable home loans

Turning to rates, Bank of Queensland introduced a new 2 year intro rate for its Variable Home Loan. Owner occupiers can now receive 3.69% p.a. (4.55% p.a. comparison rate*) for the first 24 months. And loans.com.au has lowered its Offset Variable 90 by 0.32%, putting it at 3.72% p.a. (3.74% p.a. comparison rate*).

Fixed home loans

BoQ has made a number of changes across its Discount Fixed Rate offerings. 2 and 3 year rates for both owner occupiers and investors saw cuts of 0.05%.

Meanwhile, Suncorp made some adjustments to its Fixed Home Loan and the Home Package Plus option. Longer duration terms for owner occupiers saw cuts of up to 0.20%, while 1 year fixed rates for the package deal jumped up 0.20% to 3.69% p.a. (4.90% p.a. comparison rate*).

3 year rates for Macquarie Bank’s Offset Home Loan Package were reduced by 0.10%. Owner occupiers will now receive 3.99% p.a. (4.15% p.a. comparison rate*). 

Term deposits

Suncorp has shuffled around its term deposit rates, raising some while cutting others. The 5 month rate saw the biggest drop - 0.40% - leaving it at 2.15% p.a., while the 6 month rate increased 0.05%, putting it at 2.40% p.a.

Gateway Bank decreased its 1 year annual rate by 0.15%. It now sits at 2.70% p.a. And Credit Union SA, G&C Mutual Bank and Heritage Bank made cuts of between 0.10-0.20% to various offerings.

For a look at which term deposits still offer decent value, be sure to check out our term deposits comparison page.

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

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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.

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