Ratehacker: The Best Rates to Boost Your Finances in June 2020

Ratehacker: The Best Rates to Boost Your Finances in June 2020
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Time passing may have felt impossible during March and April for many Australians, thanks to strict stay-at-home rules brought on by the COVID-19 pandemic.

Thankfully, we’ve finally made it to June and experienced the first of lifted restrictions. This means much-needed spending can hopefully soon return to significantly impacted industries like retail and hospitality, helping to stimulate the Australian economy and boost jobs.

Meanwhile, the Reserve Bank of Australia held the cash rate at a record low of 0.25 per cent for June, meaning Aussies have at least another month of rock-bottom interest rates to take advantage of.

This comes at a great time for thousands of first home buyers who’ve taken up The Government’s First Home Loan Deposit Scheme, which is now fully reserved.

If you’re looking to boost your finances this month, here are some of the most competitive interest rates on the market for home loans, credit cards and term deposits.

Fixed home loan rates at record lows

An historic low cash rate means mortgage holders have seen seriously low home loan rates on offer from a variety of banks, big and small.

RateCity research found that in May 2020, 507 new customer rates changed and 75 per cent of these were cuts.

This includes HSBC, which cut its 2-year fixed rate to 2.09 per cent – the lowest fixed rate on the market (equal with ING).

This research shows that if you’re hoping to nab a low rate in 2020, you may potentially need to make yourself a new customer. If you’re not in a financial position to refinance, consider using lower rates offered by competitors as ammunition in negotiations with your bank.

After all, if you don’t ask you don’t get.

Lowest fixed rates on the RateCity.com.au database:

Note: data accurate as at 03.06.2020.

Low rates for first home owners

As we move into June, first home buyers may be on the hunt for competitive home loans as the Australian Government’s First Home Loan Deposit Scheme is now fully reserved.

Interestingly, 58 per cent of applicants were under the age of 30 years, with only 11 per cent over 40 years old. For those who missed out, a further 10,000 places will be made available from 1 July.

But for first home buyers looking to take that first step on the property ladder, here are some of the lowest first home buyer rates on the market:

Lowest first home buyer rates from lenders participating in the First Home Loan Deposit Scheme:

Note: data accurate as at 03.06.2020.

Term deposits locking in secured rates in unprecedented times

The impact of the COVID-19 pandemic on the Australian economy has been devastating, with Australia now entering its first recession since 1991.

As savings account interest rates continue to slide below inflation levels, finding a safe harbour for your savings may be in your best interests. This is where term deposits may offer a lifeline.

Unlike savings accounts, term deposits allow you to lock in an interest rate over a set period of time. If you’re concerned that interest rates may continue to fall throughout 2020, looking into term deposits may help your savings to keep growing.

Here are the highest term deposit rates on RateCity database:

Note: data accurate as at 03.06.2020.

Credit cards with low rates and zero annual fees

As Australia enters a recession, something you’ll want to keep at the front of your mind is how you can avoid growing debt.

If you’re the type of person who is always charged interest on their credit card balance each payment cycle, it may be worth considering refinancing to a lower rate, no fee option. This can help you to keep your debt under control while reducing overall costs in keeping a credit card.

Here are some of the lowest rate credit cards on the RateCity database, that also charge no annual fees:

Note: data accurate as at 03.06.2020.

Disclaimer: This article contains general information only and is not intended to be used as personal advice.

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