Ratehacker: The Best Savings and Mortgage Rates Available Right Now

Has the rising cash rate made you consider looking outside of your current provider for a better deal? You may want to compare some of the lowest refinancing rates for homeowners, and the highest savings account rates available to new customers.

Additionally, if you’re already daydreaming about your next holiday, one strategy to nab Qantas flights could be to consider applying for a credit card with bulk Qantas frequent flyer points on sign up.

Let’s explore some of the most competitive financial products on the RateCity database in February 2023.

Lowest variable mortgage rates for owner-occupiers

If your home loan interest rate is putting severe pressure on your household budget, you’re not alone. A ninth increase to the cash rate in a row from the Reserve Bank of Australia is driving up variable mortgage rates across the country.

Chances are your home loan repayments are significantly higher than they were early last year. And with the big four banks predicting even more cash rate increases to come, it could be worth comparing your options and giving yourself a rate cut by refinancing.

Low-rate variable home loans: owner-occupiers paying principal and interest

Source: RateCity.com.au. Data accurate 17/02/2023

Note: With rate increases to come into effect throughout February, some of the above lowest interest rates are estimates following the lender’s post-cash rate hike announcement.

Lowest fixed mortgage rates for owner-occupiers

If you’re one of the lucky homeowners who fixed their mortgage rate when the cash rate was still at its record low of 0.10%, you may be sitting on a significantly lower interest rate – for now.

Unfortunately, a fixed-rate cliff is on the horizon. Many of the fixed rate terms that were locked in at a lower rate are set to end in 2023, with these homeowners entering into a much more challenging mortgage rate environment. In fact, the potential fallout is estimated to impact $99 billion worth of mortgages from just CommBank and Westpac’s books alone.

If your fixed rate term is coming to an end and you would like to re-fix, you may be curious as to what the most competitive fixed-rate mortgages are in February.

Low-rate fixed home loans: owner-occupiers paying principal and interest

Source: RateCity.com.au. Data accurate 17/02/2023.

High-interest savings accounts

While rising rates will be painful news for homeowners, it’s cause for celebration for savers, as interest rates on savings accounts climb above 4%.

It’s never been more important to shop around and ensure you’re earning a competitive rate, as some ongoing savings rates offered by the big four banks are still below 1%. In fact, if you deposited $25,000 into a savings account earning 4.50% interest, in just one year you may grow your balance by $1,148 (assuming all conditions were met).

High-interest conditional savings accounts

Source: RateCity.com.au. Savings rate data accurate 17/02/2023

Credit cards offering bulk Qantas Frequent Flyer points on sign up

One financial product that is rarely, if ever, affected by the cash rate is credit cards. The average credit card purchase rate has stayed around 16-18% since Australians began pocketing the useful piece of plastic.

So, if you’re looking for a way to take advantage of competitive offerings and deals with credit cards, you could consider switching to one offering bulk frequent flyer points on sign up.

If you are a Qantas frequent flyer member and looking to boost your points balance, you may already utilise the common strategy known as “points chasing”, or hopping between different credit cards to nab their sign-up bonuses, to cover the cost of flights.

In February, the bonus points on offer from some credit cards could get you across Australia, or take you internationally, to countries like Indonesia, New Zealand or the US.

Some of the credit cards offering bulk Qantas frequent flyer points on sign up

Source: RateCity.com.au. Data accurate as of 17/02/2023

Keep in mind that there is more to a credit card than the points bonus on offer, and this strategy will not suit every Australian. It’s crucial you compare factors like the interest rates and fees associated with these cards to ensure it suits your budget and needs. You will also still need to meet the eligibility criteria set by the provider to gain approval. Consider reading the Product Disclosure Statement (PDS) before signing up.