Are you experiencing FOMO when it comes to interest rates? No-one would blame you – with the Reserve Bank of Australia (RBA) keeping the nation’s cash rate on hold again, and banks eager to attract new customers post-recession, interest rates are still being slashed across the mortgage and personal loan markets. This cheaper borrowing is reportedly leading to surging property sales and rising house prices.
How to lock in a low mortgage rate
Some of the lowest home loan interest rates currently being offered are for fixed rate mortgages, where the interest you’ll pay is set for a predetermined number of years. This can help keep your repayments consistent for a limited time – even if variable interest rates rise during the fixed rate period, you’ll keep paying the same low rate until the fixed term expires and the mortgage reverts to a variable rate.
Keep in mind that while some banks have been cutting two and three year fixed rates, others have been increasing four year fixed rates at the same time. This may be partially due to the RBA’s plans to keep the cash rate on hold until 2024, which is also when the RBA’s term funding facility is due to expire. With a cash rate increase likely to occur when there’ll likely be less support available for banks to provide cheaper loans, mortgage lenders may be planning ahead for potential future increases to variable rates.
- Greater Bank Great Rate Fixed Home Loan (NSW, ACT & QLD only) 1 Year
- Hume Bank Property Package Fixed Rate Loan (Principal and Interest) 1 Year
- RACQ Bank Choices Fixed Home Loan (QLD only) (Principal and Interest) 1 Year
- Westpac Premier Package Fixed Options Home Loan (Principal and Interest) 2 Years (LVR < 70%)
- HSBC Package Fixed Rate Home Loan (Principal and Interest) 2 Years (LVR < 80%)
Source: RateCity.com.au, data accurate as of 09.04.2021.
Refinancing could help save you money in more ways than one
If you already own a home, you may have been thinking about refinancing onto one of these much-hyped low rates. This could help you to save some money on your mortgage repayments, or pay your home off that little bit faster so you can pay less total interest on the property.
But you may also be able to save a little money in a different way when your refinance your mortgage. RateCity research has found that you may receive more value from some home loan cashback deals than what you’d pay in upfront fees and charges to refinance, effectively saving you money from the start of your new mortgage.
- Commonwealth Bank Wealth Package Fixed Rate Home Loan (Principal and Interest) 3 Years (Refinance Only)
- HSBC Home Value Home Loan (Principal and Interest) (LVR < 80%)
- Reduce Home Loans Super Saver Cash Back Variable (Principal and Interest) (LVR < 80%)
- Newcastle Permanent Real Deal Variable Home Loan Special (Principal and Interest) (LVR < 80%)
- Virgin Money Reward Me Home Loan Fixed 3 Years ($300k+) (Principal & Interest) (New Customer)
Source: RateCity.com.au, data accurate as of 09.04.2021.
Credit cards to help you start flying frequently
With the New Zealand/Australia travel bubble ready to go, and more international travel options potentially opening up in the future, you may be curious about which credit cards could offer you bonus reward points if you signed up today. Plus, some credit cards may offer extra travel benefits, such as complimentary travel insurance when you book your flights and accommodation on the card.
Keep in mind that the credit cards that offer the most generous sign up bonuses and rewards programs may not always have the lowest interest rates or fees, and you may need to fulfil terms and conditions to receive the maximum bonus points. Consider which credit card options may be best suited to your financial situation before you sign on any dotted lines.
- HSBC Platinum Credit Card (Bonus Points Offer)
- ANZ Rewards Black
- IMB Bank Platinum Rewards Mastercard
- Westpac Altitude Black (Altitude Velocity)
- Citi Rewards (Velocity Points)
Source: RateCity.com.au, data accurate as of 09.04.2021.
Car loans for road trips
If you’d prefer to take your next big holiday interstate, it may be good to do so with a new set of wheels. Or at least a used set of wheels that still runs fine, that’s affordable, and that’s easy to maintain.
With the help of a car loan, you may be able to drive away in a vehicle of your choice. A car loan with a low interest rate may let you enjoy more affordable repayments, while other car loan features and benefits may also offer extra flexibility to suit your financial situation.
- Driva Low Rate Car Loan
- Credit Concierge Car Loan
- Car Clarity Car Loan
- loans.com.au Green Car Loan
- Australian Military Bank Car Loan
Source: RateCity.com.au, data accurate as of 09.04.2021.
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