Happy New Year, and welcome to the first Ratehacker round-up for 2020! Here are all the latest credit card deals, plus the best savings accounts and home loans that you need to know about in January 2020.
As we enter a new decade, it’s the perfect time to reflect on the year that has just passed, and set yourself resolutions for the year ahead. Whilst many of us will most likely focus on how to work off those extra festive season kilos, outlining your financial resolutions for 2020 could be the ticket to a more prosperous 2021.
If you’re in the market for a home loan, looking to get out of debt, or travelling abroad in the new year, Rachel Wastell from comparison site Ratecity has found the lowest home loan rates, highest savings accounts rates and much more.
Get a home loan rate starting with 2
If you’re going to live in the home you’re buying, an owner occupier home loan is the one for you. These rates are currently at record lows due to the current cash rate sitting at just 0.75%, and you can now apply for home loans with rates starting with 2.
- Well Home Loans offers a two-year fixed principal and interest home loan, aptly named the Well Balanced Home Loan, for the lowest rate of just 2.68%.
- Reduce Home Loans variable rate principal and interest Low Rider Home Loan, comes a close second with a rate of just 2.69%.
- UBank also offers a very low rate of 2.69% on it’s three-year fixed UHomeLoan owner occupier loan, rounding out the top two lowest rates for fixed home loans.
- Homestar Finance Star Essentials Home Loan is the second lowest variable rate home loan on the market, offering a rate of just 2.74%.
Earn up to 150,000 Frequent Flyer points
If you’re thinking about a holiday overseas in 2020, and you’re considering flying with Qantas, you could boost your Frequent Flyer points by over 100,000!
If you use your credit card for most expenses, and pay it off in full every month, these cards could get you the points you need to fly to your dream destination.
- Qantas Money Qantas Premier Titanium credit card offers 150,000 bonus Frequent Flyer points when you spend $5000 within 90 days of approval
- Qantas Money Qantas Premier Platinum will deliver 120,000 Frequent Flyer points for signing up, and 20,000 points every month for six months, when you spend $1500 or more each month
- NAB’s Qantas Rewards Signature Card could see you getting 120,000 points for signing up, 90,000 points when you spend $3000 within 60 days, and 30,000 points if you keep your card for 12 months.
- ANZ’s Frequent Flyer Black Credit Card is also offering 120,000 bonus points, when you spend $4000 on eligible purchases in the first three months of approval.
These points bonuses are all subject to different terms and conditions, so be sure to read the PDS before you apply.
Credit cards with interest rates under 9%
The festive season, which could technically be referred to as the spending season, may have left you a little short on cash.
If you’re in the market for a credit card to help you get through the first few months of 2020, you don’t want to waste money on paying excessive interest rates.
Here are six credit cards on offer this month, all with purchase rates under 9%.
- G&C Mutual Bank’s Low Rate Visa Credit Card is the lowest on the market, with a very low 7.49% rate on purchases. Its annual fee is $50, and offers 50 days interest free
- Auswide Bank’s Low Rate Visa Card is the next lowest, offering 8.7% interest on purchases, an annual fee of $50, and 55 days interest free on purchases
- Northern Inland CU’s Low Rate Visa Credit Card has a rate of 8.99%, yet offers no interest free days. It does, however, charges no annual fee
- Community First Credit Union’s Low Rate Visa Card also has an 8.99% purchase rate, and has 55 interest free days, with a low annual fee of $40
- Easy Street Financial Services’s Low Rate Visa Credit Card matches Community First’s offering, with a low annual fee of $40, 8.99% purchase rate and 55 days interest free
- MOVE Bank’s Low Rate Credit Card rounds off the top six with 8.99% interest on purchases, an annual fee of $59 and up to 45 interest free days
Before you apply for a credit card, make sure you check the Product Disclosure Statement (PDS) and Key Facts Sheet to be sure you are aware of all charges before you sign anything.
Invest in property with rates under 3.1%
If 2020 is the year you decide to invest in the property market, you’ll need to look at investment home loans, rather than owner occupier loans.
These types of loans often carry higher rates than owner occupier loans. However, with rates at record lows, there are some investment loans offering rates starting with 2.
Here are the four lowest interest rates on the market right now for investors, all under 3.1%.
- UBank offers the lowest three-year fixed principal and interest investor loan rate for investors, at just 2.84%
- Tic Toc also offers a three-year fixed principal and interest investor loan rate starting with two. The Fixed Investment Loan rate is just 2.89%
- Reduce Home Loans have the lowest variable rate on the market for investors, with the Rate Slasher Variable Investment Loan offering 2.99%
- State Custodians doesn’t offer a rate starting with two, but have the second lowest investor loan on offer this month. Its Low Rate Investment Loan (with offset) is at 3.08%
Fixed vs variable rate loans
With fixed rate home loans, it’s important to remember that at the end of the fixed period, your loan will most likely revert to your chosen bank’s standard variable rate. However, if you speak to your lender before your fixed term is up, you may be able to negotiate a lower rate, or apply for another fixed term.
With variable rate home loans, think about speaking to your lender or broker to see if you can negotiate a lower rate, as you may be able to secure a better deal if you have a high deposit amount or an excellent credit history.
Make 2020 the year you get out of debt
Could 2020 be the year you pay off your existing debts?
If so, these debt consolidation personal loans could be the perfect option for you, as they currently have the lowest interest rates on the market.
- Symple’s Personal Loan can help you consolidate your debt with rates as low as 5.75%, however, the upfront fee is 1% of the amount borrowed and rates can go up to 19.99%
- Police Bank’s Low Rate Personal Loan starts at just 5.79%, and has an upfront fee of $98, regardless of the amount borrowed.
- RateSetter’s Unsecured Personal Loan has a competitive rate of 6.89%, however you need to have an excellent credit rating, and this is restricted to a three-year term.
However, if your debt is not one lump sum, and is instead scattered across multiple credit cards, you might want to consider getting a 0% balance transfer card.
If this is the best option for you, here are three 0% balance transfer cards with the lowest purchase rates on the market, all under 10%.
- MOVE Bank’s low rate credit card offers a 0% balance transfer for six months. Purchases are charged at a rate of 8.99%, and there’s no annual fee for the first year. It offers 45 days interest free, and you are charged an annual fee of $59 when the first year is up.
- Police Bank’s Visa Credit Card has a higher purchase rate of 10.76%, however it has a 0% balance transfer period of twelve months. It also charges no annual fee for 12 months, instead of six. So, if you’re using this card purely to collate your debt, and not for purchases, this may be the better option for you.
- Australian Military Bank’s Visa Credit Card offers a 0% balance transfer for a period of 12 months, and a purchase rate of 11.99%. It charges a low annual fee of $49, which could be an attractive option for those who need one year to pay off their debts in full.
Get a savings rate above the inflation rate
Have you ever checked whether your current savings account is offering you an interest rate above the inflation rate?
The inflation rate is currently sitting at 1.7 per cent. So, if your savings account is offering you an interest rate less than that, you are basically “parking” your money, rather than earning real interest on it.
Here are the savings accounts with the highest rates above the inflation rate on the market this January.
- 86 400’s Save Account has a 2.25% interest rate when you deposit $1000 each month. This is a neobank, however, so everything is managed via the app or via phone support.
- Up Bank’s Save account has a savings rate of 2.25%, yet is another online-only offering. You need to make five or more card purchases every month from your account, which could eat into your savings, but this account has no $1000 deposit quota.
- Bank of Queensland’s Fast Track Savings Account offers a savings rate of 2.15%, and has physical branches for savers who like personal interaction. Deposit $20 per month and make five visa debit transactions to secure this rate.
That’s it for January!
Keep an eye out for next month’s Ratehacker, to make sure you get the lowest rates on the market.
** Data accurate as at Wednesday 8th January 2020 according to RC database. The lowest rates on the market do not always equate to the cheapest products as fees and charges may apply. Contact the lender directly to request a copy of the Product Disclosure Statement, before you complete any applications, as applying to multiple credit products can negatively impact your credit score. Personal loans often have establishment fees between $200-500, so make sure to check all fees with the lender before you apply.