As we move into May, not only are we starting to get closer to year end, but we have also started to see a number of significant rate changes in the personal lending arena, which we will discuss. . more below.
Additionally, as mentioned in last month’s personal loans snapshot, this year we have seen a consistent trend for Australians to take out personal loans to help fund the cost of home improvement projects.
According to the last Publication of ABS loan indicators, the value of new loan commitments for fixed-term personal loans rose 0.2% in January, while the value of new loan commitments for “other purposes” rose 15.8%. In contrast, the value of new credit commitments for road vehicles fell 3.3%.
Personal loan interest rate changes:
When it comes to personal loan interest rates, here are some of the changes since last month’s registration:
Interest rate cuts:
- OurMoneyMarket recently reduced the starting rate on its fixed car loan by 15 basis points, down to 5.35% per annum (benchmark rate of 7.05% per annum *). It also reduced its low-rate personal loan by 89 basis points, which now stands at 5.40% per annum (benchmark rate of 7.31% per annum *).
- At the end of April, NAB reduced the interest rates on its personal loan (variable, unsecured) and its personal loan (fixed, unsecured) to 6.99% per annum (comparison rate of 7.91% per annum *).
- Westpac reduced its Westpac personal loan (fixed, unsecured) by 200 basis points at the end of March, bringing it down to a competitive 3-year fixed rate of 9.99% per annum (benchmark rate of 11, 16% per year *), available until May 18, 2021.
Rising interest rates:
- Australian Military Bank recently increased rates on a range of its products by 50 basis points, including variable and fixed options on its unsecured personal loan, now 5.85% per annum (comparison rate of 6.70% per year), and the variable starting rate on its Car loan which is now 4.49% per year (comparison rate of 5.40% per year).
- Hume Bank increased the fixed rates of its secured auto loan and unsecured personal loan by 200 basis points to 6.95% per annum (comparison rate of 7.97% per annum *) and 10.95% per annum. year (comparison rate of 12.00% per annum *), respectively.
- The St. George Group’s special offer on its fixed rate unsecured personal loan has officially ended, raising it 150 basis points to 11.49% per annum (benchmark rate of 15.38% per annum * ).
Which lenders stand out?
After all of the recent rate changes, the lenders with the lowest personal loan interest rates in the Mozo database are Alex, Australian Military Bank, Credit Union SA, and Transport Mutual Credit Union.
So it seems the smaller mutual banks and credit unions are still where they are if you’re looking for a more competitive rate.
What about reputable lenders?
This month we have seen a number of interest rate changes among the big banks. Keep in mind that the interest rates on personal loans from major banks are often higher than those from most competing lenders.
For example, the interest rate on ANZ’s unsecured variable personal loans is currently just under 13%, a huge jump from the lowest interest rate in the Mozo database, which is at 4.15% per year.
Variable rate personal loans:
After keeping the title of âBiggest Banks Lowest Variable Rate Personal Loanâ in the Mozo database for many months, the Commonwealth Bank was pushed to the bottom of the list. It comes after NAB reduced its NAB personal loan (variable, unsecured) by 5.70% basis points on April 21, 2021 – bringing it down to 6.99% per annum (benchmark rate of 7.91% per year). an *).
At the other end of the scale, despite lowering its rates by 3 basis points at the end of September 2020, the ANZ unsecured variable personal loan continues to have the highest variable rate of large banks in the database. Mozo, with its variable of 12.99% per year. interest rate (comparison rate of 13.86% per annum *).
Fixed rate personal loans:
When it comes to big bank fixed rates, Westpac has lost its place of having the lowest rate in the Mozo database. Instead, the lowest fixed interest rate of the major banks in the Mozo database is now owned by NAB after its personal loan (fixed, unsecured) saw a 5.70% reduction of the point. base on April 21, 2021, reducing it to a 3-year fixed rate of 6.99% pa (comparison rate of 7.91% pa *).
Thanks to NAB’s rate cut, the highest fixed interest rate for personal loans from major banks in the Mozo database is the ANZ unsecured (fixed) personal loan which offers a fixed rate of 10.50 % per year over 3 years (comparison rate of 11.38% per year *).
Personal loan rate to note in May:
Looking for more options? Then check out our nifty personal loan comparison tool where you can compare heaps of personal loans right now.
^ See information on Mozo Experts Choice personal loan rewards
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