This week in banking - Savings rates take a hit

In this week’s banking recap, we review what’s been happening on the home loan and savings front since the RBA cut official interest rates, plus take a look at some helpful tax and energy tips.

Variable rate cuts continue

In the wake of last week’s RBA rate cut, we sat back and watched as banks and lenders scrambled to revise their home loan interest rates. Among the latest to make moves were UBank and Bendigo Bank, with the former passing on the full 0.25% cut for the second time in a row. Bendigo Bank, on the other hand, was less willing to wield the axe, reducing rates by 0.20%.

Which lenders passed on the cut twice?

July marks the second month in a row that the RBA has cut the cash rate, and while plenty of lenders opted to pass on the full cut in June, we didn’t see anywhere near as many do the same in July. In fact, only six home loan lenders dropped variable home loan rates by 0.25% on both occasions. Can you guess which ones?

Savings cuts ramp up

Unfortunately, it’s customary for savings account rates to drop too as banks look to make up for lost revenue. Take ING, which cut rates on its popular Savings Maximiser, Savings Accelerator and Business Optimiser accounts this week, much to the dismay of its devoted base of customers. 

Thankfully, there’s a silver lining. Rates for both business and personal term deposits have jumped up as of late, with the ING term deposit now offering 2.30% p.a. for 11 month terms, an increase of 0.80%.

Key changes for small business owners this financial year

The new financial year is here, and it brings with it a number of important tax changes small business owners will need to know about. Number one on the list is the mandatory rollover to Single Touch Payroll (STP) - which will now apply to all businesses, not just those with 20 or more employees - but there’s plenty more.

“Being aware of these regulatory changes and how they can affect you and your business, may assist in the smooth operation of your business and help you maximise your return,” said Chartered Accountants Australia and New Zealand Senior Tax Advocate, Susan Franks. 

Keep your energy bill low this winter

Talk of energy bills might leave many downright despondent, and it’s no wonder - for so long, sneaky penalties and exorbitant costs were the name of the game. But the good news is that there are a handful of discounts and rebates available to pensioners, low-income households, and those experiencing financial hardship to help ease the burden. 

Is now a good time to fix?

With the interest rate environment having reached record lows, several fixed rates are now sitting at or below the 3.00% mark. And while the next few weeks are likely to bring more news of cuts to variable rates, you might be eyeing some of the fixed options out there and wondering if now is a good time to lock one in instead. 

"Whether you choose to fix now, or just opt for a really competitive variable rate and see what happens later in the year, this is the perfect time to be refinancing or getting into the home loan market," said Mozo Director Kirsty Lamont.

So if you're looking to finally take your first steps up the property ladder, be sure to visit our home loan comparison page for a look at some quality deals, or check out some of the options below.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    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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    Details
  • 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
  • placeholder
    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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  • placeholder
    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.