Personal Loans Snapshot: February 2022

Personal Loans Snapshot: February 2022

As we kick off 2022 and reflect on how personal loan interest rates have been tracking over the past couple of months, we saw several discounted rates come out.

We also saw the ever-growing list of low rate loans available for environmentally friendly product purchases continue to grow, with the addition of a new Green Car Loan from MOVE Bank.

More broadly, over the past few months, there’s been a developing trend around the introduction of risk-based pricing among lenders - such as ING, who adopted the model on its single loan option.

Taking a look at the latest ABS Lending Indicators release, there was a 0.7% increase in fixed-term personal loan commitments (seasonally adjusted) in December 2021. Quite a drop when compared to November’s 4.5% increase in fixed-term personal loans from the month prior.

Additionally, the release reported a 0.6% decrease in new loan commitments for road vehicles, as well as a massive 17.4% increase in the value of new loan commitments for personal investment.

Personal loan interest rate changes:

Here’s what’s been happening lately in terms of personal loan interest rates and offer changes:

Interest rate cuts:

  • As the only lender to have made changes to its personal loan rates since our last update - Hume Bank slashed 100 basis points off its fixed Secured Personal Loan option, bringing it down to 5.95% p.a. (6.16% p.a. comparison rate*). It also cut 100 basis points off its fixed Unsecured Personal Loan, which now sits at 9.95% p.a. (10.17% p.a. comparison rate*).

Other changes:

  • Latitude has increased the application fee on both its secured and unsecured personal loans, up $49 to $299.

Ended offers:

  • Commonwealth Bank has removed its application fee waiver offer that had been available for students.

Which lenders stand out?

Once again, we see that the lenders with the lowest personal loan interest rates in the Mozo database are Community First Credit Union, Alex Bank, Transport Mutual Credit Union and Credit Union SA - showing that smaller banks and credit unions are where it’s at if you want a more competitive rate.

How about big-name lenders?

Over the past month, we’ve seen no major movements among big bank personal loan interest rates. It’s also worth noting that rates from the major banks tend to be much higher than most competitor lenders.

Currently, we see that the Commonwealth Bank’s Unsecured Variable Personal Loan interest rate sits at just 9.00% p.a., a significant jump compared to the lowest interest rate in the Mozo database of 3.99% p.a.

Variable rate big 4 personal loans:

At the moment, the lowest big bank variable rate personal loan interest rate in the Mozo database is the NAB Personal Loan (Variable, Unsecured), at 6.99% p.a. (7.91% p.a. comparison rate*).

As for the highest big bank variable rate personal loan in the Mozo database, that would be the Commonwealth Bank Unsecured Variable Personal Loan at 11.50% p.a. (12.38% p.a. comparison rate*).

Fixed rate big 4 personal loans:

In terms of fixed-rate personal loans, the lowest big bank fixed rate in the Mozo database is none other than NAB’s Personal Loan (Fixed, Unsecured), which offers a 3-year fixed rate of 6.99% p.a. (7.91% p.a. comparison rate*).

The highest fixed-rate big bank personal loan in the Mozo database once again belongs to the Commonwealth Bank, with its Unsecured Personal Loan (Fixed), which has a 3-year fixed rate of 9.00% p.a. (9.90% p.a. comparison rate*).

Personal loan rates of note in February:

On the hunt for more personal loan options? Then go take a look at our personal loans comparison tool, where you can start comparing personal loan options right away!

Written by: Rhianna Dews, Personal Loans writer, 1 February 2022.

Compare Personal Loans today - last updated 14 May 2022

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% p.a.based on $30,000
    over 5 years

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  • Home Improvement Loan

    Fixed, Unsecured

    interest rate
    comparison rate
    Monthly repayment
    5.75% p.a.
    5.96% p.a.based on $30,000
    over 5 years

    Handypay offers flexible home improvement loans for Excellent Credit or better. Handypay is a specialist home improvement plan provider and offers loans up to $75,000.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 5.75% would cost $34,840.18 including fees.

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  • Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 7.89% p.a.
    6.39% p.a.to 8.49% p.a.based on $30,000
    over 5 years

    With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. You could qualify by simply earning above $25,000 and you’ll be on the way to start spending (other eligibility criteria may apply).

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 6.39% would cost $35,126.40 including fees.

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.45% p.a.
    6.79% p.a.to 17.86% p.a.based on $30,000
    over 5 years

    Wisr offers personal loans for any worthwhile purpose, tailored to your credit score to ensure you’re getting a fair deal. Plus, no ongoing or early exit fees. Loans from $5,000 to $79,000. Terms of either 3, 5 or 7 years. $595 establishment fee. Eligibility criteria applies.

    Repayment terms from 3 years to 5 years. Representative example: a 5 year $30,000 loan at 5.95% would cost $35,352.21 including fees.

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* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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.

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