The knives are out and busy slashing variable rates for Home Loans. However the story is different for fxed rates where rates are being increased, particularly for longer term options.

Relatively few changes were made to Credit Cards last month, but a handful of issuers made changes to introductory offers. Mozo Banking Roundup Most of the changes to Personal Loans in May were cuts applied May 2021 to the fxed rates available on unsecured loans, these included cuts from two of the big 4 .

Not as many cuts to report for At Call Deposit rates as we have A summary of the key changes to pricing & offers in seen in recent months, but there was also one provider that the past month, and the current price leaders, in increased its key ongoing bonus rate. Australian consumer banking. Overall the picture for Term Deposit rates remains one of a falling market, however we have seen what might be the start of a shift in direction with a couple of small ADI’s bucking the trend and increasing rates.

Published 1 June 2021 Macquarie cut variable rates across its suite of products by Home Loans between 10 and 40bp. The Basic Home Loan now starts at 2.34% (2.34% comp rate*) for owner occupiers with an LVR less than 60%. Lately we have observed lenders cutting variable rates but at the Tic:Toc reduced its owner occupier variable rate by 15bp, now same time starting to increase fxed rates, particularly for the 4 and 2.04% (2.05% comp rate*). 5 year terms. Variable rate competition is running hot with already sharp rates reduced even further. The lowest rate available for a 5 year term is slightly from 2.19% a month ago to 2.24% now and Fixed Rates available from either major or a subsidiary of another major increased the 3 and 4 year fxed rate terms bank. by 5bp to 2.19% (3.85% comp rate*) and 2.24% (3.74% comp rate*). ING cut 1-3 year rates by 15-25bp with the lowest rate now the 2 Variable Rates year fxed 1.84% (3.73% comp rate*), while the 4 and 5 year rates Athena already had quite sharp variable rates and has reduced were increased by 35bp (2.34%, 3.54% comp rate*) and 30bp them even further. For owner occupiers with an LVR less than 60% (2.49%, 3.48% comp rate*) for LVRs less than 80%. For higher loan to the rate was cut 20bp to just 1.99% (1.99% comp rate*) for LVRs up value ratios, new pricing structures were introduced for both LVRs to 70% the cut was 15b p to 2.09% (2.02% comp rate*), and for LVRs 80%-90% as well as 90%-95%, with premiums of 45-55bp above the up to 80% the rate was cut 10bp to 2.19% (2.08% comp rate*). Rates <80% tier. for investors were also reduced, now starting from 2.39% (2.39% NAB increased 4 and 5 year terms by 21bp and 25bp to 2.19% comp rate*). (3.76% comp rate*) and 2.49% (3.76% comp rate*) for packaged Auswide Bank cut variable rates across its product range with the loans. sharpest option - its basic Home Loan with an LVR of less than 75% - Other providers that made increases to 4 or 5 year fxed rates for owner occupiers down 30bp to just 2.09% (2.11% comp rate*). include: bcu, Citi, , Macquarie, Mortgage House, Bendigo Bank dropped the owner occupier rate on its Express , Regional Bank, Tic:Toc, Well Home Home Loan by 50bp to 2.19% (2.36% comp rate*). Loans. Homestar reduced several variable rate options by 10bp, now starting from 2.04% (2.07% comp rate*).

Mozo Banking Roundup - May 2021 Market Snapshot

Basic Variable, Variable Comparison Major banks Best package fxed 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 2.04% 2.04% 2.04% 2.24% 2.24% CommBank Extra Home Loan 2.69% 2.70% (3.33%) (3.26%) (3.18%) (3.18%) (3.13%)

NAB Base Variable Rate Home Loan 2.69% 2.69% Commbank 2.09% 1.94% 2.19% 2.24% 2.99% (4.11%) (3.93%) (3.85%) (3.74%) (3.93%) Flexi First Option Home Loan 2.79% 2.80% NAB 2.09% 1.89% 1.98% 2.19% 2.49% (4.16%) (3.97%) (3.83%) (3.76%) (3.76%) Best package variable rates, Variable Comparison Major banks Owner Occupier Rate Rate* Westpac 2.09% 1.89% 1.98% 2.29% 2.59% (3.59%) (3.46%) (3.38%) (3.38%) (3.43%) ANZ Over $150,000 (LVR<80%) 2.99% 3.42%

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% 1 Year Fixed bcu 1.67% 3.84% Westpac Over $150,000 (LVR<70%) 3.19% 3.60% 2 Years Fixed bcu 1.78% 3.67%

Current Rate Leaders Variable Comparison 3 Years Fixed Credit Union SA 1.79% 3.33% ($400,000 80% LVR) Rate Rate* 4 Years Fixed BankVic 1.95% 3.40% Owner Reduce Home Loans 1.99% 2.05% ANZ 3.13% Occupier Super Saver Variable 5 Years Fixed 2.24% UBank 2.33% Tic:Toc Investor 2.19% 2.20% Variable Home Loan

*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 infuence 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 - May 2021 Credit Cards Market Snapshot

Top offers Activity in the Credit Card category last month was quite subdued with fewer changes than we usually see, although there were still a 0% Balance 36 months HSBC Platinum range of adjustments to offers. Transfer (no BT fee) 0% American Express reduced the number of bonus Membership Introductory ANZ Platinum 17 months Rewards points offered on its Explorer Credit Card from 90,000 to Purchase Rate 50,000. The bonus Qantas Points on offer with its Qantas Ultimate Lowest G&C Mutual Low Rate Visa 7.49% Card were increased from 55,000 to 120,000 with the spend criteria Purchase Rate lifted from $3,000 to $4,500 in the frst 3 months. ANZ Rewards Black 180,000 ANZ Citi Prestige 200,000 Citi Rewards ANZ extended the 0% balance transfer period on its Low Rate card Introductory St.George/BoM/BSA Amplify from 20 to 30 months. Bonus Points Signature 200,000 Amplify Qantas Money Premier Titanium 150,000 Qantas CUA increased the interest free balance transfer period on both its Westpac Altitude Black 150,000 Altitude Low Rate and Platinum Credit Cards from 20 to 25 months.

Kogan Money increased the bonus credit on its Black Card from $300 for spending $1,500n in the frst 90 days to $50 paid on the frst eligible append within 30 days plus $350 when $2,500 is spent in the frst 90 days.

Qantas Money cut the number of bonus points available on its Qantas Premier Platinum card from 100,000 to 80,000, with no change in the qualifying criteria of spending $4,000 on the card in the frst 3 months.

Mozo Banking Roundup - May 2021 Summary of Big 4 card offers

ANZ - 0% for 17 months on purchases on Platinum, 12 months on First. - $0 frst year annual fee on Low Rate, Platinum, Rewards Black, Rewards Platinum. - 0% for 30 months BT on Low Rate. - Offers between 40k and 180k bonus points on Rewards and 25k to 120k on Frequent Flyer.

CommBank - 5.99% for 5 months BT on all cards excluding Essentials and Neo. - 0% for 15 months purchase rate on the Low Rate card. - $0 frst year annual fee on Low Fee, Low Fee Gold cards with a spend of $1,000 p.a or $10,000 p.a. for Gold. - $150 cashback on the Low Fee card and $200 cashback on the Low Fee Gold card. - Offers between 80k and 100k bonus points on Awards cards.

NAB - 0% for 6 months BT (+2% fee) on all cards. - 0% for 26 months BT (+2% fee) on Low Rate Card. - Offers between 60k and 120k bonus points on Rewards and 30k to 110k Qantas cards.

Westpac - 0% for 28 months BT (+1% fee) on Low Rate. - 0% for 15 months purchase rate on Low Fee. - 0% for 18 months BT (+1% fee) on Rewards Platinum and Rewards Black. - Discounted $99 frst year annual fee on Altitude Platinum and frst year annual fee waived for Low Rate (usually $59). - 60k Frequent Flyer or 80k Altitude bonus points on Altitude Platinum, 120/150k on Altitude Black.

Mozo Banking Roundup - May 2021 Personal Loans Market Snapshot

Most of the rate changes for Personal Loans during May were cuts, Major Banks Product Headline Rate Comparison Rate* and those were largely applied to fxed rates for unsecured personal ANZ Unsecured Loan 8.99% fxed 9.89% loans. Two of the major banks were amongst those cutting rates. Car Loan 6.99% fxed 8.05% CommBank Alex trimmed the starting rate for its fxed unsecured Personal Loan Unsecured Loan 9.00% fxed (3 year) 9.90% by 4bp, now at 5.45% (5.45% comp rate*). 6.99% var/fxed NAB Unsecured Loan 7.91% (indicative rate) ANZ reduced the fxed rate on its Unsecured Personal Loan by Car Loan 7.49% fxed 8.68% 151bp, now 8.99% (9.88% comp rate*), and the variable rate by Westpac Unsecured Loan 9.99% fxed 11.16% 249bp, now 10.50% (11.38% comp rate*) as a promotional offer.

Bankwest cut 100bp off its fxed Car Loan rate, now 6.99% (7.34% comp rate*). Current Rate Leaders Headline Rate Comparison Rate*

Commonwealth Bank discounted its fxed Unsecured Personal Unsecured Symple Loans 5.75% variable 6.47% Personal Loan Loan rate by 250bp, now 9.00% (9.90% comp rate*).

Secured loans.com.au 3.97% fxed 4.51% took 110bp off its fxed Car Loan rate, now 4.89% Clean Green Car Loan (5.53% comp rate*), and 100bp off its fxed unsecured Standard Personal Loan, now 7.99% (8.62% comp rate*).

SocietyOne reduced the starting rate on its fxed Unsecured *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 Personal Loan by 44bp to 5.95% (5.95% comp rate*). 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 - May 2021 At-Call Deposits Market Snapshot Major Banks Current Rate

A relatively quiet month for At Call Deposit rates with only 11 Progress Saver 0.40% ongoing bonus ANZ providers reducing their key ongoing bonus rates and one Online Saver 0.35% intro for 3 months implementing an increase. Goalsaver 0.35% ongoing bonus CommBank NetBank Saver 0.40% intro for 5 months Australian Unity cut its Active Saver’s ongoing bonus rate by 25bp Reward Saver 0.30% ongoing bonus to 0.75%, its Easy Saver’s introductory rate by 20bp to 0.60% and its NAB iSaver 0.35% intro for 4 months Freedom Saver’s unconditional rate by 20bp to 0.35%. Life 0.40% ongoing bonus CUA cut the ongoing bonus rate on its eSaver Reward by 10bp to Westpac Life (under 30) 3.00% ongoing bonus 0.85%. eSaver 0.40% intro for 5 months

Heritage Bank reduced the ongoing bonus rate on its Target Bonus Current Rate Leaders Rate Condition account by 25bp to 0.51%. Min deposit $1,000, 5 debit card Ongoing ING Savings MyState increased the ongoing bonus rate on its Bonus Saver 1.35% transactions, grow balance in the Bonus Maximiser Account by 10bp to 1.20%. month. QBank’s Bonus Saver had its ongoing bonus rate trimmed by 5bp to Intro High Interest Savings 1.50% for 4 months, then 0.25% 0.90%. Account

Base Macquarie Savings Unconditional, up to $250,000, Qudos Bank reduced the ongoing bonus rate on its Bonus Saver by 0.95% Rate Account 1.10% intro rate 10bp, now 0.80%.

Volt Bank dropped its unconditional base rate by 10bp to 0.90%. * rate tables based on an account balance of $10,000

Mozo Banking Roundup - May 2021 Term Deposits Market Snapshot

Overall the term deposit market was largely fat in May with just 21 Major Banks Less than 12m 12 Months 24 Months 36 Months deposit-taking institutions active with changes, presenting a mix of ANZ 0.25% (7 to 11m) 0.30% 0.30% 0.30% upwards and downwards adjustments. The 12 month term average is unchanged at 0.52%, with only small one basis point movements CommBank 0.15% (9 to 11m) 0.30% 0.25% 0.25% in other key terms observed. The last time we saw an improvement NAB 0.25% (9 to 11m) 0.25% 0.25% 0.30% in the average 12 month rate was December 2018. Westpac 0.25% (10 to 11m) 0.35% 0.25% 0.25% AMP Bank made the largest cuts this month, slicing 20 to 30 basis points from all advertised terms. Current Rate Leaders Rate

Australian Unity also made reductions in May, cutting 20bp from Less than 12 Months 1.01% all terms. (6 months)

MyState Bank improved its 9 month (+30bp, now 0.80%) and 12 1 Year Judo Bank 1.00% month terms (+20bp, now 0.85%) 2 Years Judo Bank 1.20%

Summerland Credit Union improved its rates 6 months and longer 3 Years Judo Bank 1.15% by 10 to 12 basis points, its 12 month rate now 0.60% 4 Years Judo Bank 1.40%

Suncorp adjusted selected rates upwards by 1 to 10 basis points. Its 5 Years Judo Bank 1.60% 1 year term is now advertised at 0.40%. * rate tables based on a deposit of $25,000

Mozo Banking Roundup - May 2021 Mozo Banking Roundup

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Mozo Banking Roundup - May 2021