Ratehacker February 2022: Your Financial New Year Could Start Here

Ratehacker February 2022: Your Financial New Year Could Start Here
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We’re now far enough into 2022 now to have worked out which New Year resolutions were a bit too ambitious, and which ones we’re willing to stick to. If getting your finances in order this year was on your list of things to do, or buying a car, or even a home, then we have some of the top finance options to compare before making your decision.

Home loans

While the Reserve Bank of Australia (RBA) kept the national cash rate on hold at its February meeting, rate rises are coming, potentially before the year’s end. This means time may be running out for Aussies wanting to lock in a record-low fixed interest rate. Several of Australia’s leading mortgage lenders started the year by hiking their fixed rate offers and/or slashing variable rates.

Of course, there’s no guarantee that the RBA will raise the cash rate before the year’s end – that will depend on inflation, wage growth, and other economic factors. Plus, it’s important to choose a mortgage option that offers the best value for your financial situation, which isn’t always the home loan with the lowest interest rate. Whatever choice you make, keep in mind that you may need to budget for higher mortgage repayments in the future – something that over 1.1 million households have never previously had to budget for.

Some of the lowest home loan rates on RateCity at the time of writing include:

Home loan Interest rate Comparison rate
Reduce Home Loans Variable 1.77% 1.86%
UBank 1 year fixed 1.79% 2.09%
Athena Variable 1.89% 1.89%
Tic:Toc Variable 1.89% 1.90%
Loans.com.au intro 24 months 1.85% 2.21%

Source: RateCity.com.au. Data accurate as of 09/02/22.

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Car loans

Did you know that Australia’s electric vehicle (EV) sales almost tripled last year? And while the federal and state governments are yet to commit decisively to supporting the uptake of EVs, many Australians are understood to be considering an electric option for their next vehicle purchase.

But the stumbling block for many potential EV drivers is the price tag, which remains significantly higher than that of the average gas-guzzler. Some lenders offer green personal loans and green car loans specifically for financing the purchase of EVs, hybrid vehicles, and other fuel efficient cars, often with relatively low interest rates:

Green car loan Interest rate Comparison rate
Loans.com.au 3.29% 3.83%
MOVE Bank 4.09% 4.35%
Illawarra Credit Union 3.99% 5.15%
Transport Mutual Credit Union 4.74% 5.01%
BankFirst 5.29% 5.56%

Source: RateCity.com.au. Data accurate as of 09/02/22.

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Credit cards

Are you still struggling to pay off your holiday debts? After putting a record-breaking $25.7 billion on the plastic in November last year, it wouldn’t be surprising to still have some outstanding interest charges left over to cover. And if you have a family, back to school costs may have blown out your budget even further, with three in five parents saying they plan to manage school expenses with credit cards or Buy Now Pay Later.

One way to manage outstanding credit card debt is to move it over to a balance transfer credit card with a 0% intro rate. With no interest charges to increase your debt, you can focus on clearing the outstanding balance before the interest-free term ends.

Out of the more than 70 credit cards with 0% balance transfers, here are some of the choices with the longest balance transfer intro periods:

Credit Card Balance transfer offer
St.George Bank Vertigo Visa (Balance Transfer Offer) 32 months
Great Southern Bank Low Rate Credit Card 33 months
Bankwest Zero Classic Mastercard 34 months
Citi Clear 36 months
HSBC Platinum Credit Card (Balance Transfer Offer) 36 months

Source: RateCity.com.au. Data accurate as of 09/02/22.

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