Banking Roundup

[Pages:15]Mozo Banking Roundup

A monthly roundup of pricing movements, offers and incentives, product launches and changes, and price leaders in Australian consumer banking.

M ARCH 2016 EDITION Issued 1/4/2016

Credit Cards

3

Home Loans

5

Personal Loans

9

At Call Deposits

11

Term Deposits

13

W elco m e

to the M ozo Banking Roundup - a monthly snapshot of key changes in retail banking products. This month:

- In Credit Cards, another major bank follow ed the trend of cutting the value of rew ards points, and some products w ere w ithdraw n from sale.

- In Home Loans, rate cuts w ere slightly more in favour than recent months, although the overall volume of changes w as still dow n on w hat w e saw late last year.

- In Personal Loans, w e saw a greater number of changes than usual and more rate increases than w e' ve seen for a w hile - the first sign of a trend?

- Nothing much to report in At-call Deposits, w ith rates drifting gently dow n and some introductory rates coming and going.

- In Term Deposits, the direction of change is now clearly ' up' , as w e have reported each month since December.

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Credit Cards

Notable changes included ANZ follow ing Commbank' s lead from last month, by cutting the value of rew ards points. Amex reduced their bonus rew ards points and w ithdrew the Low Rate Card. CUA stopped selling cards altogether for time. GE M oney increased rates significantly.

Rate changes

- 28 Degrees raised both the purchase and cash advance rates on its Platinum M asterCard from 20.99% to 21.99% .

- B&E Personal Banking increased the cash advance rate on its Visa Credit Card by 250bp to 19.99% .

- CUA w ithdrew the Low Rate and Platinum Rew ards M asterCard from sale, previously issued by Card Services. Customer service are advising callers that an in-house product is being developed.

- GE M oney increased the purchase and cash advance rates on its GEM Visa Card by 200bp to 24.99% , and by 100bp on its M asterCard to 24.50% . The GO M asterCard' s purchase rate w as also increased by 100bp to 22.74% .

- St.George/BankSA/Bank of M elbourne added a 0.99% for 4 months introductory purchase rate across all cards. Cards w ith balance transfer offers w ill also now revert to their relevant purchase rate instead of the cash advance rate at the end of the BT term.

- Westpac added a 0.99% for 3 month introductory purchase rate to its Altitude, Altitude Black and Low Rate cards. BT revert rates w ere changed as described for St George.

Rew ards points changes

- American Express introduced an annual fee w aiver in the first year on the Platinum Edge Card (usually $195) and cut the bonus points offer from 10,000 to 5,000 after $550 spend in the first 2 months. It also ended the 80,000 bonus points available on the Qantas Premium Card, now back to the previous 30,000 bonus points offer. The Low Rate Credit Card w as w ithdraw n from sale.

- ANZ reduced points earn rates on Rew ards cards. The points per $1 spent for the Standard card w as cut from 2 to 1.5 points on American Express, and from 1.5 to 0.75 points on Visa. Platinum w as cut from 3 to 2 points on Amex and from 1.5 to 1 point on Visa, and Black w as cut from 2 to 1.25 points. The annual fee w as cut by $9 to $80 for the Rew ards card, and by $54 to $95 for the Rew ards Platinum card.

- Bank of Queensland ended the 15k/30k bonus points offers on its Blue Visa and Platinum Visa Credit Cards.

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M arket snapshot

M ajor banks

Provider

Summary of card offers

ANZ Co m m b an k

- 0% for 18 months BT on all non-rew ards cards, - betw een 25,000 and 75,000 bonus rew ard points.

- 5.99% for 5 months BT on all cards - 80,000 bonus points on Diamond/Platinum Aw ards

NAB

- 0% for 15 months BT and purchases on Premium Card or for 9 months on Low Fee Card,

- 0% for 24 months BT on Low Rate Card, - 4.99% for 6 months BT on other cards - betw een 30,000 and 60,000 bonus rew ard points.

West p ac

- 0% for 14 months BT on standard and Platinum, 20 months on Black, w ith 0.99% purchase rate for 3 months on Altitude standard and Black.

- 0% for 18 mths BT and 0.99% 3 mths intro on Low Rate Card,

- 40,000 bonus rew ards points on Altitude Platinum.

Top 0% balance transfer rates

Provider

Product

NAB Bankw est

Low Rate Card Breeze cards

Top 0% introductory rates

Provider

Product

NAB Virgin M oney

Premium Card Virgin Australia Velocity Flyer

Top Purchase rates Provider Quay Credit Union Community First Bank Australia

Product Visa Credit Card M cGrath Pink Visa Low Rate Visa

Top Bonus points offers

Provider

Product

Bankw est Commonw ealth ANZ

M ore Platinum M asterCard Diamond/Platinum Aw ards Frequent Flyer/Rew ards Black

M onths 24 21

M onths 15 12

Rat e 7.99% 8.99% 9.89%

Po in t s 80,000 80,000 75,000

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Home Loans

This month w e w itnessed slightly more lenders cutting rates than raising them, a first for this year. We also saw variable and fixed rates undergoing similar numbers of changes, in contrast to recent months w hen they often headed in opposite directions. But the number of lenders making any changes at all is still clearly dow n from the levels w e saw late last year.

Variable Rate Increases - Aussie increased its Select variable rate by 5bp to 4.24% . - M ortgage House added 10bp to rates for low LVR' s on its Pure & Simple loan, w ith loans up to 40% LVR now at 3.99% and up to 50% LVR at 4.09% . - New castle Permanent' s Premium Plus Package rate for investors is up by 20bp to 4.82% . - P&N Bank increased its Smooth Home Loan variable rate by 15bp to 4.89% for LVR' s up to 80% and to 4.99% for LVR' s over 80% . - Qantas Credit Union lifted Low Cost Home Loan Package rates by 10bp, now starting at 4.24% for ow ner occupiers borrow ing over $500k. The Qantas Points Home Loan w as also increased by 5bp to 4.44% for ow ner occupiers and by 15bp to 4.79% for investors. - QPCU increased the Discounted Classic Home Loan for ow ner occupiers by 10bp to 4.07% . - State Custodians increased its Standard Variable and Breathe Easy rates for investors by 15bp, now starting at 4.39% for LVR' s up to 80% .

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Variable Rate Decreases

- Bank of Sydney reduced the rate on the Expect M ore Home Loan Package from 4.46% to 4.15% for LVRs up to 80% and to 4.29% for LVRs up to 90% . Investor home loans are also no longer offered until further notice.

- Beyond Bank cut its Basic Variable Home Loan by 20bp to 4.64% . - Credit Union SA introduced a Variable Rate Package Special Offer of

4.20% for ow ner occupiers borrow ing at least $150k. - Defence Bank reduced the variable rate on the Essentials Home Loan for

investors from 5.88% to match the ow ner occupier rate of 4.80% . The Ultimate Home Loan for investors w as cut from 5.08% to match ow ner occupier rates of 4.80% for amounts under $250k, 4.70% for amounts up to $750k and 4.60% for amounts over $750k. - Freedomlend reduced variable rates for loans w ith LVR' s over 80% . Rates for ow ner occupiers are now 4.15% (previously 4.36% for principal & interest repayments or 4.60% for interest only) and investor rates w ere reduced by 47bp to 4.42% . - Gatew ay Credit Union cut its Package rate for ow ner occupiers w ith LVR' s less than 80% from 4.09% to 3.98% . - Homeloans cut rates on its Ultra Plus product, w ith the largest reduction of 41bp applying to ow ner occupier borrow ers w ith loans up to $200k and LVR betw een 80% and 90% . Rates now start at 4.39% for loans over $500k and LVR' s below 80% for both ow ner occupiers and investors. - Northern Inland Credit Union reduced its Dream Value Home Loan Package by 15bp for principal and interest repayments, to 4.09% for ow ner occupiers and 4.29% for investors. - Ratebusters reduced rates on various tiers of the AFG Edge Home Loan, as w ell as introducing a 20bp loading for investors above the ow ner occupier rat e. - Suncorp introduced a special offer for investors on the Back to Basics Home Loan of 4.23% (1.16% discount) w hen borrow ing at least $150k. - Teachers M utual Bank/UniBank decreased its M y First Home Loan variable rate by 20bp to 5.03% .

Fixed Rate Increases

- Beyond Bank increased 2 year fixed rates by 5bp and 3 year fixed rates by 10bp, now 4.14% and 4.19% respectively for the Total Home Loan Package.

- Homestar' s 1 year fixed rate for ow ner occupiers is up 15bp to 4.15% , 2 years up 5bp and 3 years dow n 5bp, now both 4.21% , 4 years up 5bp to 4.60% and 5 years dow n by 35bp to 4.65% .

- M E raised fixed rates for ow ner occupiers by 17bp for 2 years and by 10bp for 3 years, both now 4.29% .

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- M yState increased its 3 year fixed rate for ow ner occupiers w ith LVR' s less than 80% by 10bp to 4.18% .

- Police Credit Union increased all fixed rates by 20bp w ith 1 to 3 years all now at 4.19% , 4 years at 4.49% and 5 years at 4.59% .

- Qantas Credit Union increased fixed rates for investors by 10bp, now 4.59% for 1 to 3 year terms and 4.84% for 4 and 5 year terms.

- QPCU increased its 3 year fixed rate by 20bp to 4.39% .

Fixed Rate Decreases

- Aussie cut its 3 year rate for ow ner occupiers on the Select Basic Home Loan by 20bp to 4.09% .

- BankVic reduced 3 year fixed rates by 10bp, now 4.14% for ow ner occupiers and 4.39% for investors on the Premium Package.

- Big Sky reduced investor rates by 3bp to 4.79% for 1 year, by 18bp to 4.74% for 3 years, and by 12bp to 5.05% for 5 years. The 5 year rate for ow ner occupiers w as cut by 5bp to 4.70% .

- Community M utual Group cut fixed rates for ow ner occupiers on 1,2, 3 and 5 year terms by 10bp, now 4.39% for 1 to 3 years and 4.89% for 5 years. There is now also a premium for investor fixed rates of betw een 10bp and 45bp.

- Greater Building Society cut fixed rates for investors by 15bp for 1 and 4 year terms (now starting from 3.99% and 4.39% respectively) and by 10bp for 2 and 5 year terms (now from 4.14% and 4.44% respectively). Fixed rates for ow ner occupiers w ere also reduced by 10bp for 4 and 5 year terms (both now from 4.24% ).

- Homeloans trimmed all of its fixed rates for ow ner occupiers by 9bp. Rates for investors are dow n 4bp for principle and interest repayments and up 5bp for interest only.

- Northern Inland Credit Union cut 1, 2 and 3 year fixed rates by 20bp, all now 4.39% for ow ner occupiers and 4.59% for investors.

- SCU reduced its 2 year rate for ow ner occupiers by 6bp to 4.18% under the M y Life Package. The 3 year rate for investors w as also cut by 10bp to 4.44% .

- Suncorp cut 3 year fixed rates for ow ner occupiers by 10bp and by 35bp for investors, both now 3.99% for the Home Package Plus Special.

- St.George/BankSA/BoM introduced a 3 year fixed rate offer for the Advantage Package of 4.05% (24bp discount) for ow ner occupiers and 4.19% (35bp discount) for investors.

- Teachers M utual Bank/UniBank reduced fixed rates for ow ner occupiers to 3.99% for 1 to 3 year terms (cuts of up to 29bp) and to 4.34% for 4 and 5 year terms (cuts of up to 23bp).

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M arket snapshot

M ajor bank rates

Basic variable, ow ner occupier

Provider

Product

ANZ Commonw ealth Bank

Simplicity PLUS No Fee Home Loan

NAB

Base Variable Rate Home Loan

West p ac

Flexi First Option Home Loan

Rat e 4.80% 4.90% 4.39% 4.39%

Best package rates, ow ner occupier

Provider

Tiering

ANZ

over $500,000, up to 80% LVR

Commonw ealth Bank over $750,000

NAB

over $750,000

West p ac

over $750,000

Rat e 4.66% 4.90% 4.70% 4.68%

Fixed rates, packaged ow ner occupier

Provider

1 year 2 years 3 years 4 years 5 years

ANZ

4.39% 4.19% 4.29% 4.59% 4.59%

Commonw ealth Bank 4.39% 4.19% 4.29% 4.59% 4.59%

NAB

4.39% 4.19% 4.24% 4.59% 4.59%

West p ac

4.39% 4.19% 4.29% 4.59% 4.59%

Top variable rat es

(ow ner occupier, 80% LVR)

Provider

Product

Ho m est ar

Bank Australia Freed o m len d

Ow ner Occupier Loan

Basic Home Loan Variable Home Loan

Bank of Queensland, Community First, Credit Union SA, CUA, Easy Street, HSBC, Illaw arra Home Loans, IM B Bank, State Custodians, UBank

various products

Rat e 3.94% 3.98%

3.99%

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