Trending News 30 May 2019

New record low home loan rate announced

Two lenders have already announced significant interest rate cuts, well ahead of an expected RBA rate cut next week.

Non-bank lender Mortgage House has announced a new market leading variable home loan rate of just 3.29 per cent (comparison rate 3.34 per cent). This is the lowest variable home loan headline rate now readily available to retail customers in Australia.

ING has cut variable home loan rates for new owner-occupiers (but not existing borrowers or new investors) on principal and interest Orange Advantage home loans by 0.17 percentage points to 3.68 per cent for a loan of up to $500,000.

ING’s Mortgage Simplifier home loan rate will also come down to 3.63 per cent for loan amounts up to $500,000.

The Reserve Bank of Australia is expected to cut the official cash interest rate next Tuesday 4 June 2019 by 0.25 percentage points, leading to widespread cuts to variable rate home loan rates from banks and credit unions for retail borrowers.

Compare variable rate home loans from all of Australia’s major banks, credit unions and non-bank lenders here.

Small business gets early rate cuts

The prospect of a cut to official interest rates by the Reserve Bank next week has sparked rate cuts in the small business loan market.

Suncorp has announced cuts to fixed rates for secured borrowers and now offers the cheapest three year fixed-rate business loan in Australia. The Suncorp Business Essentials Fixed Loan rate has been trimmed by 0.3 percentage points. For loan amounts over $150,000, the Suncorp Business Essentials loan (secured by residential mortgage) is charging a headline rate of 4.14 per cent, down from 4.44 per cent.

The Suncorp rate now undercuts Newcastle Permanent Building Society’s three-year fixed rate for secured business loans at 4.16 per cent.

Valiant Finance’s Secured Business Loan Advice currently charges a headline variable interest rate of 4.50 per cent. 

You can compare business loans from Australia’s banks, credit unions and other lenders here.

$500 home loan cash bonus for going green!

Commonwealth Bank will introduce a “Green Mortgage” cash back scheme that will reward borrowers for installing solar panels.

Commonwealth Bank CEO Matt Comyn said the green mortgage scheme is the “first of many” initiatives from CBA to encourage and support greener choices by customers.

CBA’s Daniel Huggins, GM for home buying, said Commonwealth Bank will pay $500 cash to home loan customers who have certified solar panels installed.

The Clean Energy Council of Australia reports that a home with rooftop panels can save $540 a year on their energy bills. Commonwealth Bank will formally launch the Green Mortgage initiative soon said Matt Comyn.

Compare home loans from all of Australia’s major banks, credit unions and non-bank lenders here.

Big banks slash term deposit rates

More than 50 banks and credit unions have cut term deposit rates in recent weeks. More institutions are expected to cut savings rates next week. ANZ has cut rates on longer terms by up to 0.30 percentage points.

Commonwealth Bank, National Australia Bank (NAB), ING, CUA, UBank and People’s Choice Credit Union are among many other institutions to trim their term deposit rates in recent weeks.

The best 12-month term deposit rate now available is 2.75 per cent from First Option Credit Union and My Life Finance. The best 6-month rate is also 2.75 per cent from firstmac and Goldfields Money.

Compare term deposit rates, fees and features from Australia’s major banks, credit unions and other financial institutions here.

A new $20 note for Australia!

Australia’s favourite cash money is the $20 banknote, affectionately known as “the lobster” for its red colour. Now the Reserve Bank of Australia has redesigned the $20 note with added security features and an enhanced design. Australia’s $20 note features convict turned businesswoman Mary Reibey and Reverend John Flynn, pioneer of the Royal Flying Doctor Service.

The notes have new security features including a top-to-bottom clear ‘window’ containing a reversing number and flying bird element. The new ‘lobster’ also has a patch with a rolling colour effect and microprinted text from Reverend Flynn’s book The Bushman’s Companion and the names of Mary Reibey’s ships.

The RBA will begin distributing the new design in October 2019.