Mozo Banking Roundup the Withdrawal of One Card from the Market

A range of lenders have tweaked variable Home Loan rates, but the real competition continues to be in fixed rates which seem to fall to new lows every month. A major bank subsidiary now offers

the lowest in our database for any fixed term.

A handful of changes to Credit Card offers to report, along with Mozo Banking Roundup the withdrawal of one card from the market.

Several providers have cut rates on various Personal Loans, all January 2021 (incorporating changes from 17th December 2020) of them fixed, plus one of the major banks is waiving its application fee.

A summary of the key changes to pricing & offers in The pace of At Call Deposit rate cuts has slowed at last. Most of the past month, and the current price leaders, in the cuts recently have been driving down ongoing bonus rates. Australian consumer banking. While the volume of cuts has also slowed for Term Deposit rates, we still recorded 36 of the providers tracked by the Mozo database reducing rates which saw the average 1 year rate fall once again.

Published 1 February 2021

Home Loans

Since we last reported, just before the holiday break, the real action Fixed Rates continues to be in fixed rates where the battle for bragging rights Gateway Bank reduced its 3 year rate for owner occupiers under its (and headlines) for the lowest rates continues. premium Package by 15bp to 2.04% (3.27% comp rate*).

ME reduced its range of investment fixed rates by 29-40bp. Variable Rates Newcastle Permanent cut its range of 4 year fixed rates by 19bp, Aussie made cuts of between 24 and 95bp to the rates on its but increased its 5 year terms 20bp. As a part of its Special pricing in Activate Prime loan for owner occupiers. It now offers 2.45% (2.48% the Premium Plus Package, rates are now 1.99% (3.46% comp rate*) comp rate*) for LVR’s up to 75%, 2.59% (2.62% comp rate*) for up to and 2.19% (3.43% comp rate*) for 4 and 5 year terms respectively. 80%, and 2.89% (2.92% comp rate*) for anything higher. After making cuts of between 5bp and 20bp P&N Bank now offers Freedomlend trimmed its range of variable rates with reductions of rates of 1.99% for terms from 1 (3.71% comp rate*) to 4 years (3.27% between 2bp and 12bp. Owner occupier rates now at 2.17% (2.17% comp rate*). The 5 year rate is at 2.39% (3.29% comp rate*) . comp rate*) for an LVR <80%. UBank cut between 15 and 35 basis points on its range of fixed ME reduced several rates offered under its Flexible Home Loan. For lending options at 1, 3 and 5 years. It now offers the most owner occupiers with an LVR below 80% rates start from 2.49% competitive 3 year fixed rate owner occupier loan on the market at (2.95% comp rate*). 1.75% (2.22% comp rate*) on its UHomeLoan product.

Mozo Banking Roundup - January 2021

Market Snapshot

Basic Variable, Variable Comparison Major banks Best package fixed rates, Owner Occupier (comparison rate*) Major Banks Owner Occupier, 80% LVR Rate Rate* 1 year 2 years 3 years 4 years 5 years ANZ Simplicity PLUS 2.72% 2.76% ANZ 2.09% 2.09% 2.09% 2.29% 2.29% CommBank Extra Home Loan 2.69% 2.70% (4.13%) (3.98%) (3.84%) (3.77%) (3.67%)

NAB Base Variable Rate Home Loan 2.69% 2.69% Commbank 2.19% 2.14% 2.14% 1.99% 2.99% (4.12%) (3.97%) (3.11%) (3.66%) (3.93%) Westpac Flexi First Option Home Loan 2.79% 2.80% NAB 2.19% 2.09% 2.09% 1.98% 2.79% (4.17%) (4.00%) (3.86%) (3.69%) (3.87%) Best package variable rates, Variable Comparison Major banks Owner Occupier Rate Rate* Westpac 2.09% 2.09% 2.09% 1.99% 2.29% (3.59%) (3.50%) (3.40%) (3.29%) (3.31%) ANZ Over $500,000 (LVR<80%) 3.49% 3.91%

CommBank Over $750,000 (LVR<95%) 3.85% 4.27% Comparison Current Rate Leaders ($400,000 80% LVR) Fixed Rate Rate* NAB Over $750,000 (LVR<95%) 3.62% 4.03% Greater Bank 3.51% Westpac Over $150,000 (LVR<70%) 3.19% 3.60% Hume Bank 3.93% 1 Year Fixed 1.89% RACQ Bank 4.17%

Tic:Toc 2.18% Current Rate Leaders Variable Comparison ($400,000 80% LVR) Rate Rate* RACQ Bank 4.00% 2 Years Fixed Suncorp 1.89% 2.94% Owner Reduce Home Loans Tic:Toc 2.15% 1.99% 2.08% Occupier Super Saver Variable 3 Years Fixed UBank 1.75% 2.22% Tic:Toc Investor 2.33% 2.34% Variable Home Loan Bank of Melbourne 3.21% 4 Years Fixed 1.94% St.George 3.21% *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, 5 Years Fixed Aussie 1.99% 2.35% 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.

Mozo Banking Roundup - January 2021

Credit Cards

Only a handful of changes to offers to report, and all are from American Express. Summary of card offers American Express made changes to a range of bonus points offers. ANZ The Explorer Credit Card had its bonus points reduced from 120,000 - 0% for 17 months on purchases on Platinum. to 50,000 and removed the additional 30,000 paid at the start of the - $0 first year annual fee on Low Rate, Platinum. - 0% for 18 months BT (+2% fee) on First. second year. The Platinum Edge Card was offering 50,000 bonus - 0% for 25 months BT (+1.50% fee) on Low Rate. points but that offer has been removed. Bonus points on the - Offers between 50k and 130k bonus points on Rewards and 25k to 120k Qantas Premium Card were more than doubled, up from 30,000 to on Frequent Flyer. 80,000. The Qantas Ultimate Card also had its bonus points CommBank increased, up from 55,000 to 100,000. - 5.99% for 5 months BT on all cards excluding Essentials. - 0% for 15 months purchase rate on Low Fee, Low Fee Gold, Low Rate Citi withdrew the Premier Card from its product range. and Low Rate Gold cards. - $0 first year annual fee on Low Fee, Low Fee Gold cards with a spend of Market Snapshot $1,000 p.a or $10,000 p.a. for Gold. - Offers between 80k and 100k bonus points on Awards cards.

NAB Top offers - 0% for 6 months BT (+2% fee) on all cards. - 0% for 20 months BT (+2% fee) on Low Rate Card. 0% Balance 30 months - Offers between 60k and 120k bonus points on Rewards and 30k to 130k Citi Rewards - BT offer Transfer (no BT fee) Qantas cards.

0% Westpac Introductory ANZ Platinum 17 months - 0% for 24 months BT (+1% fee) on Low Rate. Purchase Rate - $200 cashback on Low Rate with a minimum $1,000 spend. - 0% for 15 months and 0% for 6 months BT on Low Fee. Lowest - 0% for 18 months BT (+1% fee) on Altitude Platinum. G&C Mutual Low Rate Visa 7.49% Purchase Rate - Discounted $99 first year annual fee on Altitude Platinum - 60k Frequent Flyer or 80k Altitude bonus points on Altitude Platinum, St.George Amplify Signature 200,000 Amplify 120/150k on Altitude Black. Introductory American Express Explorer 150,000 Membership Bonus Points Qantas Money Premier Titanium 150,000 Qantas Westpac Altitude Black 150,000 Altitude Mozo Banking Roundup - January 2021

Personal Loans Market Snapshot

Very few changes to report for personal Loans, and the few rates Major Banks Product Headline Rate Comparison Rate* that were adjusted were all fixed with variable rates being left ANZ Unsecured Loan 10.50% fixed 11.38% untouched. Car Loan 6.99% fixed 8.05% CommBank Beyond Bank reduced rates on its Environmental range of options Unsecured Loan 9.50% fixed (3 year) 10.40% by 50bp. The unsecured Flexi Personal Loan is now at 12.24% NAB Unsecured Loan 12.69% var/fixed 13.56% (12.50% comp rate*), the secured No Fee personal Loan is at 7.24% Car Loan 7.49% fixed 8.68% (7.24% comp rate*) and the Low Rate Personal Loan is at 6.24% Westpac Unsecured Loan 11.99% fixed 13.15% (6.93% comp rate*), all with an environmental purpose eligibility requirement.

Hume Bank cut rates on both its Unsecured Personal Loan and Current Rate Leaders Headline Rate Comparison Rate* Secured Personal Loan by 100bp, now 8.95% (9.17% comp rate*) 5.35% and 4.95% (5.16% comp rate*) respectively. Unsecured Aust Military Bank 6.21% Personal Loan - Excellent Credit variable/fixed NAB is waiving the $150 fee on its unsecured Personal Loan until loans.com.au the end of March. Secured Clean Green Car Loan 3.97% fixed 4.51% RAA reduced rates on its car Loan by 25bp, now starting from 5.20% (5.55% comp rate*) for members and 6.20% (6.69% comp rate*) for non-members. *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, 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.

Mozo Banking Roundup - January 2021

At-Call Deposits

While there were fewer cuts to At Call Deposit rates last month than Westpac cut 15bp off the ongoing bonus rate on its Life account, we’ve seen for a while there were still quite a few rates reduced, and the introductory rate on its eSaver account, both now at 0.40%. particularly ongoing bonus rates. Market Snapshot Bank Australia reduced the ongoing bonus rate on its Bonus Saver account by 20bp, now 0.60%. Major Banks Current Rate

Progress Saver 0.50% ongoing bonus Bank of us cut the ongoing bonus rate on its Save up account from ANZ Online Saver 0.45% intro for 3 months 0.80% to 0.50%. Goalsaver 0.45% ongoing bonus CommBank Commonwealth Bank trimmed 5bp off the introductory rate on its NetBank Saver 0.50% intro for 5 months NetBank Saver, now 0.50%. Reward Saver 0.40% ongoing bonus NAB iSaver 0.45% intro for 4 months CUA cut the ongoing bonus rate on its eSaver by 25bp, now 0.95%. Life 0.40% ongoing bonus Greater Bank’s Bonus Saver had its ongoing bonus rate cut by Westpac Life (under 30) 3.00% ongoing bonus 15bp to 0.60%. eSaver 0.40% intro for 5 months

MyState Bank cut its Bonus Saver Account’s ongoing bonus rate by Current Rate Leaders Rate Condition 15bp to 1.20%. Ongoing ING Savings Min deposit $1,000, 5 debit card NAB cut 15bp from both the iSaver introductory bonus rate to 1.35% Bonus Maximiser transactions. 0.45% and the Reward Saver ongoing bonus, now 0.40%. Rabobank The St.George Group dropped both the ongoing bonus rate on its Intro High Interest Savings 1.75% for 4 months, then 0.30% Account Incentive Saver Account and the introductory rate on its Maxi Saver Base Macquarie Savings Unconditional, stepped up to by 15bp to 0.45%. 1.20% Rate Account $250k, then 0.95% up to $1mil Teachers Mutual Bank and and its sub-brands reduced the ongoing bonus rate on its Reward Saver Account by 15bp to 0.85% * rate tables based on an account balance of $10,000

Mozo Banking Roundup - January 2021

Term Deposits Market Snapshot While volumes have been lower than in previous months, term deposit rates continue to fall with 382 cuts from 36 banks. The Major Banks Less than 12m 12 Months 24 Months 36 Months average rate for a 12 month term is down 4bp to 0.58%. ANZ 0.35% (7 to 11m) 0.40% 0.40% 0.40% ANZ made reductions of 5-20bp on selected terms, CommBank 0.25% (9 to 11m) 0.45% 0.35% 0.35% Commonwealth Bank cut 5-10bp on all terms 6 months or greater, while Westpac cut 5-15bp on all available terms. NAB did not NAB 0.35% (7 to 11m) 0.40% 0.40% 0.40% adjust term deposit rates during the period. Westpac 0.25% (10 to 11m) 0.25% 0.25% 0.25%

Highlights from the remainder of the market include: Bank Australia (10-15bp on all terms, except for its 3 year term which Current Rate Leaders Rate received a 10bp increase), Credit Union SA (15bp cuts), Greater Judo Bank Bank (10-15bp cuts), HSBC (5-15bp cuts), MOVE Bank (10-20bp Less than 12 Months 0.98% (9 months) cuts), Qudos Bank (20bp), St.George Group (5-15bp), Suncorp 1 Year BankVic 1.05% (5-25bp cuts, 15bp and 20bp increases on 3 and 6 month terms) and The Mutual Bank (5-20bp cuts). Judo Bank increased rates for 2 Years Judo Bank 1.20% terms up to 1 year by 15bp and cut 2, 3 and 5 year rate terms by 3 Years Judo Bank 1.20% 10bp to 1.20%. 4 Years Judo Bank 1.20%

5 Years Judo Bank 1.20%

* rate tables based on a deposit of $25,000

Mozo Banking Roundup - January 2021

Mozo Banking Roundup

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Mozo Banking Roundup - January 2021