Dwindling personal loan deals - how you can still find great value
Article by Ceyda Erem
With today marking the official end to summer, many Aussies may have already noticed the slight chill in the air, but here at Mozo we’ve also noticed a change to personal loan discounts - or the lack of them.
According to Mozo data, many personal loan discounts and deals that were originally introduced at the start of February have ended, leaving Aussies wondering if there’s still value to be found in taking out a personal loan.
For instance, the Bank of Queensland increased their Unsecured Personal Loan by 100 basis points - jumping from 9.99% to 10.99%.
The trend also followed among many other providers, with the likes of Westpac and the Bank of Melbourne dropping the $0 application fee offers on their personal products, and then bumping them up to $200 and $195, respectively.
However, Mozo Data Manager, Peter Marshall, believes that this move from providers is not unexpected.
“Traditionally, December and January are months where competition really heats up between providers, especially with personal loans and credit cards,” said Marshall.
“Customers have a lot of short term expenses they need funding for, like a holiday or a new car. The banks know this and will try to get as much business as they can through specials and rate discounts.”
But despite the steady decline in personal loan deals, Marshall has encouraged Aussies by suggesting that there’s still reward to be found in taking the time to shop around and compare products.
“This is just a seasonal issue because there are still plenty of discounts out there - it’s just important that customers look beyond the big banks and consider smaller providers for their financial products.”
In fact, according to the Mozo database, the G&C Mutual Bank Fair Rate Unsecured Personal Loan currently has a low rate of 5.99% which compares to Westpac’s Unsecured Personal Loan which is currently sitting at 11.99%.
What to look for in a personal loan
With all the current offers for personal loans, it can be tough to know what features you should be looking for.
The fees - Upfront, ongoing or early repayments fees are avoidable, so keep your eye out for a policy that offers no or minimal fees.
Your borrowing power - The maximum amount you can borrow will depend on what you can afford. Our personal loan repayment calculator can help you find out this amount.
Repayment schedule - Make sure you’ll be able to make repayments on a flexible schedule that suits your circumstances. Having the ability to make extra repayments is also a handy feature to have - you never know when you’ll fall into some extra cash.
Redraw availability - Another handy feature? Being able to redraw that extra cash in the event of an emergency, like a sudden illness or bill.
Ready to find a top personal loan deal? Then head over to our personal loan comparison tool to check out some of the current offers.