Low-interest home loans and eco-friendly car loans to save on your household budget in June
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Interest rates are officially rising after a decade of interest rate cuts, with the Reserve Bank of Australia raising interest rates by 0.25% and 0.50% in May and June respectively. So where else can Australians get a good deal on their financial products?
There are still competitive home loans out there for those seeking lower fixed or variable interest rates, with some still in the low 2 percent range. If your home loan repayments are taking a financial toll on your budget, it may be worth comparing your options.
With gas prices rising and more infrastructure to be built by state governments, it might be worth considering switching to an electric vehicle to save money in the long run. While the upfront cost of an electric vehicle can be intimidating, car 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 dreaming of warmer climates, you can buy an international ticket using bonus Qantas frequent flyer points on check-in, which will be offered on a range of credit cards in June.
So let’s explore some of the most competitive interest rates on home loans and green car loans, as well as bulk point-on-enrollment credit cards.
Lowest adjustable rate home loans
The Big Four banks have forecast that cash rates will continue to rise, peaking at around 2-3% by the holiday season. And that means variable home loan interest rates should move with them, so your home loan repayments are significantly higher in just six months.
One option homeowners have to take back control of their mortgage payments is to consider refinancing to a lender with lower interest rates. While there’s more to a home loan than the rate charged, including fees and features worth comparing, lowering your interest rate before rates soar could give you some breathing room. You may even be able to build up a savings buffer from your lower home loan amortization rates.
According to the RateCity database, there are still two home loan providers that offer variable rates below 2% for owner-occupiers paying principal and interest. And while those rates are expected to rise in response to the June rate hike, for your refinance research, it’s worth knowing which lenders are currently offering competitive rates.
Lowest variable rates for owner-occupiers (paying P&I)
|home loan||interest rate||comparison rate||Remarks|
|Reduce Home Loans Super Saver Home Loans||1.94%*||2.03%||* Changed to 2.44% on June 24th|
|Pacific Mortgage Group Variable Standard Home Loan||1.99%*||2.06%||* Changed to 2.49% on June 27th|
|Foreign Bank Home loans||2.01%*||2.03%||* Changed to 2.51% on June 22nd|
Source: RateCity.com.au. Data status 06/21/22.
Lowest fixed rate home loans
With interest rates already rising, you may be wondering if it’s too late to set your mortgage rate. RateCity research shows that by comparing your existing home loan rate to lower rate options on the market, some homeowners are getting the edge through refinancing.
Interest rates always fluctuate over a term of 25 to 30 years. So if you’re looking for stability in your repayments by fixing your interest rate for a fixed period of time, consider comparing fixed rate options.
RateCity’s database shows that the following home loan interest rates are the most competitive for their fixed term:
Source: RateCity.com.au. Date exactly from 06/21/22.
Green car loans to finance your electric vehicle
Gasoline prices are currently at an all-time high and Australians are expected to pay even more once the six-month fuel consumption tax cut expires at the end of September. One option drivers have to reduce the ongoing cost of fueling their vehicle with gasoline is to consider switching to an electric vehicle (EV).
And with the latest Tesla Model Y heading our way in August, you might be seriously considering getting an electric vehicle. EVs are a greener option when it comes to driving, but they have their own pain points, like initial cost.
Buying an electric vehicle in Australia tends to be more expensive than in 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 can help you go full throttle and switch to an electric vehicle:
Largest Qantas frequent flyer bulk points when signing up for credit cards
This month, several credit cards are offering bulk frequent flyer points that can take you as far as Europe, depending on eligibility.
Research from RateCity shows that you need at least 36,000 frequent flyer points to return to Bali and over 100,000 to buy return flights to London or Europe. These are the credit cards that offer the most Qantas frequent flyer points upon 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