This week in banking - Things are looking up for first home buyers

In this week’s banking recap, we take a look at the current state of the property market, the latest news in the banking app world, and the things business owners should be doing to give their business the best shot this financial year.

Outlook for first home buyers improves

With interest rates at historic lows, we’ve seen a spike in confidence among first home buyers as of late, with many who’ve had their sights on the property market gearing up to take the next step. 

In Sydney and Melbourne, auction clearance rates - which are often an indicator of market strength - have bumped up to 73% and 74%, respectively. For perspective, those numbers were sitting around the 50% mark this time last year. 

“Prices have become more realistic and lower. First home buyers can now borrow more because APRA has gotten rid of the 7% serviceability buffer, which means banks are willing to hand over a larger loan,” said Mozo’s property expert, Steve Jovcevski.

“And with the RBA’s back-to-back rate cuts, they can also lock in a great deal, as the market currently has variable rates of under 3% or really good fixed rates for 4 or 5 years.”

The CommBank app gets a facelift

The CommBank app, a multi-Mozo Experts Choice Award winner, has just undergone a facelift. CommBank app 4.0 was rolled out this week, promising users a smorgasbord of new insights and features. 

Not only will it tell you if you’ve accidentally paid a utility bill twice and remind you if any grace periods on any subscription services are wrapping up, but it will also give you helpful tips for what to do with your tax return once it arrives.

Business owners - start the new financial year right

The 2017-18 financial year is behind us, and business owners are likely cracking open the books and drawing up plans for the year ahead. And with a number of legislative changes entering the picture, there’s a lot they’ll need to get their heads around. If you’re a business owner, we’ve compiled four tips to help you keep your head above water.

Investor rates shaping up

Since June 1 - just before the first RBA rate cut of the year - the average home loan rate for investors paying principal and interest has dropped by 0.35%, while the average rate for interest only loans has fallen 0.37%.

And while the gap between owner occupier and investor rates isn’t set to close any time soon, the reductions have seen sentiment among investors improve.

“It’s encouraging that as well as rate cuts for investors paying principal and interest, we’re seeing a downward movement on interest only loans,” said mozo’s property expert, Steve Jovcevski.

“This time two years ago property investors were staring down average interest only rates of 5.12% and lenders were handcuffed around the volume of loans they could issue by the APRA cap.” 

Whether you're looking for your next investment property or your future home, it pays to keep an eye on the sorts of rates that are available. Be sure to check out our home loan comparison page for an idea.

Home loan comparisons on Mozo - last updated February 27, 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

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

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    2.09% p.a.
    fixed 2 years
    2.56% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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  • Mozo Experts Choice 2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

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

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  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

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

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  • Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    1.99% p.a.
    fixed 4 years
    3.45% p.a.

    Ability to split your loan between fixed and variable. $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

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    Details
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Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

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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

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