At Lifehacker, we independently curate and write things we love and think you’ll love too. We have affiliate and advertising partnerships, which means we may earn a share of sales or other compensation from links on this page. BTW – prices are correct and items in stock at time of publication.
Interest rates continue to rise and the cost of living continues to rise. Meanwhile, the Reserve Bank of Australia (RBA) is trying to restore normality to the exchange rate and the economy. Despite these dire fiscal conditions, there are still opportunities to secure favorable rates on a range of financial products.
In early August, the RBA raised its key rate for the fourth consecutive month, raising it by 50 basis points to 1.85%. All four big banks passed on the entire rate increase to existing borrowers. New customers can avoid this loyalty tax by taking out low fixed rate home loans, while refinance options can be beneficial for current mortgage holders.
It is unclear when these rate hikes will end. It is a good idea to compare the market before making any lasting decisions. Let’s explore some of the most competitive interest rates for homebuyers, green car buyers, and avid savers.
The lowest variable interest rates on home loans
The RBA has raised interest rates for four consecutive months. RateCity research reveals that homeowners with a home loan balance of $500,000 and 25 years remaining on their mortgage could find themselves paying $472 more in August than they did in April of this year.
For homeowners, this is a significant expense to add to their existing household budget – the equivalent of around two utility bills or a long weekend. Prospective buyers may want to free up space in their budget to accommodate higher future repayments.
Borrowers looking for a fixed-rate home loan may be able to avoid short-term mortgage stress, as many banks have cut rates on these types of loans.
Remember that once the fixed rate period expires, the mortgage will likely revert to a variable interest rate. This is often the lender’s standard variable rate, which is higher than the discounted variable rate that many lenders offer to attract new customers.
Lowest variable home loans for homeowners based on RateCity database
Source: RateCity.com.au Rates apply to homeowners who pay principal and interest. The rates come from lenders who announced rate hikes in August. LVR requirements may apply. Data accurate as of 08/12/2022.
Lowest fixed rate home loans for homeowners based on RateCity database
Source: RateCity.com.au Rates apply to homeowners paying principal and interest. The rates come from lenders who announced rate hikes in August. LVR requirements may apply. Data accurate as of 08/12/2022.
Lowest Variable Home Loans for Investors Based on RateCity Database
Source: RateCity.com.au Rates apply to investors who pay principal and interest. The rates come from lenders who announced rate hikes in August. LVR requirements may apply. Data accurate as of 08/12/2022.
Competitive green car loans
Over the next few years, more Australians are likely to switch to electric vehicles as new models become available and petrol-powered cars are banned or phased out. Now might be the time to consider comparing your green vehicle financing options.
For those considering the switch to electric vehicles (EVs), affordability remains the biggest hurdle. While a new low-cost petrol vehicle can set you back between $15,000 and $20,000, the most affordable electric vehicles in Australia start at $45,000.
Choosing a competitive green auto loan is the first step to making sure your repayments are affordable. Green car lenders often offer eligible customers lower interest rates, on average, to encourage them to purchase sustainable vehicles.
Lowest Green Car Loan Rates Based on RateCity Database
High Rate Term Deposits
Interest rate hikes are generally good news for savers, but you might be wondering whether it’s better to lock your funds in a term account or avoid rising rates with an interest-bearing savings account. raised ? Everyone’s circumstances are different. If you find it difficult to dip into your savings, you may find that a term deposit suits you better.
Unlike other investment options (stocks, EFTs, bonds), time deposits are backed by the Financial Claims Scheme, also known as government guarantee. Holders of deposits with Authorized Depository Institutions (ADIs) are supported up to $250,000, in the event the provider goes bankrupt. This guarantee can help reduce your investment risk.
No matter what you choose, be sure to compare all of your options before committing.
Highest term deposit rates based on RateCity (with $20,000 deposit)