2,835 fixed rate increases in 90 days: Navigating interest rate rises

Mozo’s guide to help you navigate interest rates for home loans, savings accounts and term deposits as rates start rising

4 February 2022

  • Mozo’s database shows there has been 2835 individual fixed rate increases from 78 providers since 1 November
  • Top variable home loan rate is 1.77% through Reduce Home Loans, with the average 3.08%
  • Top big bank variable home loan rate 2.29% through ANZ, NAB and Westpac, with the average 3.46%
  • Top 1 year fixed rate is 1.79% through UBank and RACQ Bank and the top 3 year fixed rate is 2.19% through Bank of us and Southern Cross Credit Union, with the average 2.98% 
  • Top at-call savings rate is 1.35%, with the average savings 0.36%
  • Top 1 year term deposit is 1.12% through Judo Bank, while the top overall rate is 1.85% for 5 years from AMP Bank.

With the Reserve Bank set to meet tomorrow for the first time in 2022, financial comparison site Mozo has crunched the numbers to help consumers navigate interest rates across their personal finance products as rates continue to rise.  

“No matter when the RBA hikes the official cash rate, the fact is interest rates across a range of personal finance products are rising and consumers need to act to ensure they’re in a position to weather the new high rate environment,” says Mozo spokesperson Tom Godfrey.       

“From fixing your home loan at a rate that allows you to comfortably meet your repayment requirements, to locking in a low risk term deposit at a decent rate to safeguard your cash reserves, there are steps you can still take to set yourself up to weather higher interest rates.”

Variable Home Loans

Mozo’s database shows the top variable home loan rate being offered is 1.77% through Reduce Home Loans, while the average owner occupier, principal & interest rate is 3.08%. This is significantly better than the top big four bank rate offered by ANZ, NAB and Westpac (2.29%), and the average big four bank rate of 3.46%.

“As wholesale funding costs continue to increase, we’re likely to see the big banks hike variable interest rates this year regardless of what move the RBA makes. So it pays to stress test your ability to make higher monthly repayments, compare rates and switch to the best value loan you can find,” Godfrey says.

Fixed Home Loans

When it comes to fixed rates, Mozo’s database shows there has been 2,835 individual fixed rate increases from 78 providers since 1 November. It also shows if you have a 20% deposit one of the lowest fixed rates is 1.79% for 1 year offered by both UBank and RACQ Bank.

“While we are seeing banks hike fixed rates, there’s still a window to consider locking in a decent medium term rate that will give you predictable payments during what is almost certainly going to be a very turbulent time,” says Godfrey.

Deposit Accounts Interest Rates 

Mozo found there has been two increases in savings accounts this year, with its database showing the best ongoing bonus rate on a savings account is 1.35% through ING and AMP Bank, which is 0.99% higher than the average. Mozo also found the average 1 year term deposit rate is 0.51%, with the highest 1 year term deposit rate 1.12% through Judo Bank. The highest term deposit rate in Mozo’s database is 1.85% on a five year term through AMP Bank.

"If you’re looking for a little more certainty than investing in a crypto currency, putting some money aside in a term deposit might not be the biggest return you’ll get but you can count on it,” Godfrey says.

Notes: Reduce home loan variable comparison rate is 1.86%.  Variable average owner occupier, principal & interest rate (3.08%) is for an owner occupier paying principal and interest with a loan to value ratio of 80%. 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.