Low-Rate Home Loans and Green Car Loans to Save Your Household Budget in June

Low-Rate Home Loans and Green Car Loans to Save Your Household Budget in June
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Interest rates are officially on the rise after a decade of cash rate cuts, with the Reserve Bank of Australia hiking the cash rate by 0.25% and 0.50% in May and June respectively. So, where can Australians still get a good deal on their financial products?

There are still competitive home loans available for those looking for lower fixed or variable interest rates, with some still in the low 2 per cent range. If your home loan repayments are adding financial stress to your household, it may be worth comparing your options.

With petrol prices on the rise and more infrastructure to be built by state governments, making the switch to an electric vehicle could be worth considering to save you money over the long run. While the upfront cost of an EV can be intimidating, car loan lenders generally offer lower interest rates on their green car loans, so it’s worth exploring this option.

And if the colder-than-average weather has you daydreaming about warmer climates, you could consider purchasing a ticket overseas with the help of bonus Qantas frequent flyer points on sign-up offered by a range of credit cards in June.

So, let’s explore some of the most competitive interest rates for home loans and green car loans, as well as credit cards with bulk points on sign-up.

Lowest variable interest rate home loans

The big four banks have forecast that the cash rate will continue to rise, peaking around 2-3% by Christmastime. And that means interest rates on variable home loans should move with them, making your home loan repayments significantly higher in just six months.

One option homeowners have to take back control of their mortgage repayments is to consider refinancing to a lower-rate lender. While there is more to a home loan than the interest rate charged, including fees and features that are worth comparing, reducing your interest rate before rates skyrocket could offer some breathing room. You may even be able to build a savings buffer from your lower home loan repayments.

According to the RateCity database, there are two home loan providers still offering variable rates below 2% for owner-occupiers paying principal and interest. And while these rates are expected to rise in response to the June cash rate hike, it’s worth knowing for your refinance research which lenders are offering competitive rates right now.

Lowest variable rates for owner-occupiers (paying P&I)

Home loans Interest rate Comparison rate Notes
Reduce Home Loans Super Saver Home Loan 1.94%* 2.03% *Changing to 2.44% on 24th June
Pacific Mortgage Group Standard Variable Home Loan 1.99%* 2.06% *Changing to 2.49% on 27th June
Auswide Bank Basic Home Loan 2.01%* 2.03% *Changing to 2.51% on 22nd June

Source: RateCity.com.au. Data accurate as of 21.06.22.

Lowest fixed rate home loans

With interest rates already on the up, you may be wondering if it is too late to fix your home loan rate. RateCity research shows that by comparing your existing home loan rate to lower-rate options in the market, some homeowners may come out on top by refinancing.

Interest rates will always fluctuate over a 25-30-year term, so if you’re looking for stability in your repayments by locking in your rate for a fixed period, you may want to consider comparing fixed rate options.

RateCity’s database shows the following home loan interest rates to be most competitive for their fixed period:

Category Lender Rate Comparison rate
1 year fixed Unity Bank 2.74% 2.41%
2 year fixed The Capricornian 2.89% 4.21%
3 year fixed Orange Credit Union 3.79% 3.36%
4 year fixed bcu 4.49% 4.37%
5 year fixed imb Bank 4.49% 3.95%

Source: RateCity.com.au. Date accurate as of 21.06.22.

Green car loans to finance your electric vehicle

Petrol prices are currently higher than ever, with Australians expected to pay even more once the six-month fuel excise cut expires at the end of September. One option that drivers have to help reduce the ongoing cost of filling up their vehicle with petrol is to consider switching to an electric vehicle (EV).

And with the latest Tesla Model Y set to hit our shores in August, you may be thinking seriously about purchasing an EV. EVs are a more environmentally friendly option when it comes to driving, but they do come with their own pressure points, like the upfront cost.

Purchasing an EV in Australia is typically more expensive than the rest of the world. But Australian lenders know this, and generally offer lower interest rates on their green car loans to encourage customers to make more sustainable choices.

Here are some green car loans that may help you put the pedal to the metal and switch to an EV:

Biggest Qantas frequent flyer bulk points on sign up for credit cards

This month, several credit cards are offering bulk frequent flyer points that may take you as far as Europe return, depending on your eligibility.

RateCity research shows that you need at least 36,000 frequent flyer points to take yourself to Bali return, and over 100,000 to purchase return flights to London or Europe. These are the credit cards offering the largest bulk Qantas frequent flyer points on sign up, according to the RateCity database:

· Qantas Premier Titanium – 150,000 points

· ANZ Frequent Flyer Black – 130,000 points

· NAB Rewards Signature Qantas – 120,000 points

· Westpac Altitude Black (Altitude Qantas) – 120,000 points

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