Latest news with #Tindall
Perth Now
16 hours ago
- Business
- Perth Now
Big four bank announces fresh blow to savers
NAB has become the latest bank to move on interest rates, cutting the rate of one of its more popular savings accounts. NAB has announced its Reward Savers account has fallen by 0.05 per cent for a new maximum rate of 4.35 per cent, in the second cut in less than a month. It follows a 25 basis points rate reduction on May 23 in line with the Reserve Bank of Australia's official interest rate reductions. Canstar called it a 'small blow' for savers. NewsWire / Nicholas Eagar. Credit: NewsWire Account holders with NAB's Reward Savers will now get a 30 basis point reduction on their money held in the account. Canstar data insights director Sally Tindall described it as a small blow for savers who are already watching their returns slip away. 'It shows that banks don't need a cash rate change to move the goalposts for customers. It's a small move but a disappointing one nevertheless,' she said. According to Canstar, NAB is not the only bank moving on rates, with Australians now having just six banks offering at least one ongoing savings rate above 5 per cent including some young adult accounts and excluding those for children. 'While the average savings rate on our database is an uninspiring 3.07 per cent, there are six banks still offering an ongoing savings rate of 5 per cent or more,' Ms Tindall said. While each of the savings accounts comes with terms and conditions, including deposits and transactions, BOQ Future Super, BCU Bank Boss, P & N Bank Savvy Savers, MOVE Bank Growth Saver and ING Savings Maximiser all still offer rates above 5 per cent. Westpac Life Spend and Save also offers younger Aussies a 5 per cent savings rate, but comes with the major caveat of being for those aged 18 to 29. NAB announces a small cut to popular savings account. NewsWire / Gaye Gerard Credit: News Corp Australia Ms Tindall warned if the Reserve Bank cuts the cash rate again in July, which the bond market says has an 83 per cent chance of happening, the days of a 5 per cent savings rate could be behind us. 'If the RBA wields its knife again in July or August, savings rates starting with a 5 won't last beyond winter,' she said. 'Term deposit rates are, unsurprisingly, falling faster than at-call savings rates, as banks continue to bake in further cash rate cuts into the fixed rate term. 'If you're someone who likes the certainty and security a term deposit can bring, time is of the essence as these rates are likely to keep on falling in the weeks ahead.'
7NEWS
3 days ago
- Business
- 7NEWS
Investor loans: the latest cuts and why now may be the best time to secure one
Commonwealth Bank has slashed rates on some of its investor home loans for the third time in just over a month, a move that's reigniting competition in the investor mortgage space. Following two cuts in May, CBA's latest round of rate cuts has trimmed its Digi Home Loan rates for new investor customers by between 0.07 and 0.12 percentage points. The principal and interest (P&I) rate is now down to 5.69 per cent and the interest-only option to 5.95 per cent. Cantsar believes CBA is sending a message to investors. "CBA has trimmed its investment loan rate three times in the space of five weeks, while leaving its owner-occupier rate untouched," Canstar's data insights director Sally Tindall said. "The bank is deliberately targeting property investors, particularly sends a clear message to investors that the door is wide open for their business." CBA leads the pack in investor rate cuts According to Canstar, CBA's investor rates were already the most competitive of the big four banks, with the current drop, more than the RBA's prescribed cuts, consolidating their position. Their rates undercut Westpac (5.84 per cent P&I), ANZ (5.89 per cent P&I), and NAB (6.46 per cent P&I) on comparable digital or basic investor products. This signals a deliberate shift from CBA, which holds the largest share of the home loan market at around 27 per cent, compared to Westpac's 22 per cent. "It will be interesting to see if any of CBA's key competitors chase after it with investor rate cuts of their own," said Ms Tindall. "Westpac is best placed to do this with a gap of just 15 basis points between the lowest investor rates from each bank. "With variable rates likely to come down further, easing the pressure on borrowers across the country, we could see banks' appetite for investor loans increase." Investor vs owner-occupier - the gap is closing Since 2015, investor loans have carried higher interest rates than owner-occupier loans. But the latest CBA moves signals a market shift that is narrowing the gap. "Right now, the gap between the average owner-occupier rate and the average investor rate is just 0.22 percentage points, however, this could get even narrower if competition continues to heat up," said Ms Tindall. "However, banks aren't likely to be rolling out the red carpet to every borrower. "They're going to want quality investments, ideally where the rental return is still strong and the owner has a good track record of paying their loan on time." Previously, CBA's owner-occupier P&I Digi rate was 5.84 per cent, while the investor P&I rate was 6.03 per cent (as of early May). After cuts, its investor loan is now 5.69 per cent, while the owner-occupier option remains around 5.84 per cent - meaning the gap has compressed to about 0.15 points. According to RBA data, the average new investor is paying 0.22 percentage points more than the average owner-occupier, showing CBA's clear strategy to remain market leader in this space. Why have investor loans historically been more expensive? Mortgage broker Sheng Ye of Home Loan Experts said the roots of this pricing gap go back to regulatory changes a decade ago. "Historically, banks offered similar rates for investment and owner-occupier home loans. However, in 2015, the Australian Prudential Regulation Authority (APRA) became concerned about the rapid growth of investment lending, particularly interest-only loans, fearing it could lead to instability in the housing market," he said. "To mitigate this risk and rebalance their loan portfolios, banks were prompted to slow down investment lending, which led to an increase in interest rates for investment home loans." Those restrictions have since eased, but the higher-risk perception of investment loans remains - especially among lenders concerned with repayment reliability. Senior mortgage broker Jonathan Preston from Home Loan Experts agreed. "I think the arrears rate is higher on investment loans, so banks charge more on a rate-for-risk basis," he said. Is now a good time to lock in? With the Reserve Bank still holding the cash rate steady, and signs of inflation are easing, some investors may be tempted to fix part or all of their mortgage. But Mr Preston cautioned borrowers who might be planning to refinance in the near future to tread carefully. "If someone has plans to regularly refinance, fixing might be risky, as you might get caught up with break costs," he said. He also reminds property investors to stress-test their budget before diving in. "Can you afford the mortgage for six months if the tenant doesn't pay and if the property needs major repairs?" Once you've dotted your I's and crossed your T's, Ms Tindall sees now as a good opportunity, especially if you're happy to put in some work to find the best deal. "If you've built up a decent deposit and have a solid rental return, now's a great time to shop around. There are competitive deals out there, but you've got to hunt them down to get them." With interest rates appearing to stabilise and rental yields strong in many parts of Australia, now may be a rare window where investor loans offer real value. CBA's latest cuts show the majors are starting to compete harder for investor borrowers - a group that has historically been sidelined by tighter regulations and higher costs.
Yahoo
13-06-2025
- Business
- Yahoo
Big four bank announces interest-rate cut
Lenders are cutting rates and fighting for market share weeks after the Reserve Bank of Australia moved on interest rates. This time the major banks are fighting over investment loans, with CommBank slashing variable rates for investors. The major bank, which already offered the lowest investor variable rate, reduced rates even further to 5.69 per cent. These cuts of between 0.07 and 0.12 percentage points apply to the bank's digital-only investor home loan and are for new customers only. This follows the RBA reducing the official cash rate by 25 basis points to 3.85 per cent after its May meeting. All four banks immediately announced they were passing on an interest-rate reduction. Canstar data insights director Sally Tindall said CommBank's latest move was designed to further consolidate its dominance in the investor mortgage market. 'This cut is good news for new borrowers, but existing CBA investors might be frustrated to see better deals going to new business while they continue to pay more,' she said. 'It will be interesting to see if any of CBA's key competitors chase after it with investor rate cuts of their own. Westpac is best placed to do this with a gap of just 15 basis points between the lowest investor rates from each bank.' Westpac and ANZ's lowest investor variable rates are 5.84 and 5.89 per cent respectively. NAB is the only big four bank not offering an investor variable rate under 6 per cent, but the NAB-backed UBank's lowest investor variable rate sits at 5.74 per cent. 'With variable rates likely to come down further, easing the pressure on borrowers across the country, we could see banks' appetite for investor loans increase,' Ms Tindall said. 'Right now, the gap between the average owner-occupier rate and the average investor rate is just 0.22 percentage points; however, this could get even narrower if competition continues to heat up. While CommBank is lowering interest rates on investment loans, Canstar warns the quality of the property will be a key determinant of whether investors can get the loan. 'The banks aren't likely to be rolling out the red carpet to every borrower,' Ms Tindall said. 'They're going to want quality investments, ideally where the rental return is still strong and the owner has a good track record of paying their loan on time.'
Perth Now
13-06-2025
- Business
- Perth Now
Big four bank announces interest-rate cut
Lenders are cutting rates and fighting for market share weeks after the Reserve Bank of Australia moved on interest rates. This time the major banks are fighting over investment loans, with CommBank slashing variable rates for investors. The major bank, which already offered the lowest investor variable rate, reduced rates even further to 5.69 per cent. These cuts of between 0.07 and 0.12 percentage points apply to the bank's digital-only investor home loan and are for new customers only. This follows the RBA reducing the official cash rate by 25 basis points to 3.85 per cent after its May meeting. All four banks immediately announced they were passing on an interest-rate reduction. The big four banks are moving on interest rates outside of the RBA cash decisions. NewsWire / Nicholas Eagar Credit: NCA NewsWire Canstar data insights director Sally Tindall said CommBank's latest move was designed to further consolidate its dominance in the investor mortgage market. 'This cut is good news for new borrowers, but existing CBA investors might be frustrated to see better deals going to new business while they continue to pay more,' she said. 'It will be interesting to see if any of CBA's key competitors chase after it with investor rate cuts of their own. Westpac is best placed to do this with a gap of just 15 basis points between the lowest investor rates from each bank.' Competition among the major banks is heating up as they reduce interest rates. NewsWire / Luis Enrique Ascui Credit: News Corp Australia Westpac and ANZ's lowest investor variable rates are 5.84 and 5.89 per cent respectively. NAB is the only big four bank not offering an investor variable rate under 6 per cent, but the NAB-backed UBank's lowest investor variable rate sits at 5.74 per cent. 'With variable rates likely to come down further, easing the pressure on borrowers across the country, we could see banks' appetite for investor loans increase,' Ms Tindall said. 'Right now, the gap between the average owner-occupier rate and the average investor rate is just 0.22 percentage points; however, this could get even narrower if competition continues to heat up. While CommBank is lowering interest rates on investment loans, Canstar warns the quality of the property will be a key determinant of whether investors can get the loan. 'The banks aren't likely to be rolling out the red carpet to every borrower,' Ms Tindall said. 'They're going to want quality investments, ideally where the rental return is still strong and the owner has a good track record of paying their loan on time.'
Perth Now
13-06-2025
- Business
- Perth Now
‘Hard truth': Millions face energy price hike
Cash-strapped Aussies are being warned the 'cold hard truth' is electricity prices are on the rise this winter in the latest cost-of-living blow. After the Australian Energy Regulator made its final determination for the Default Market Offering back in May, millions of households will now be getting letters or emails about their new energy rates. The offer sets the maximum price caps for bill increases for customers paying for default plans. These prices are meant to protect Australian households who don't shop around as well as provide a consistent benchmark so people can find an alternative retailer. Millions of Aussies face higher electricity prices. NewsWire / Nicholas Eagar Credit: NewsWire Canstar's analysis shows Sydney electricity prices are going up 8.6 per cent, meaning the average family will now pay $145 more for their power or $1830 a year. Melbourne energy prices spiked 6.2 per cent or $83 for the average household, setting families back $1421, while Brisbane prices are up 3.7 per cent or an average of $72, with the standard household now paying $2019 per year. Canberrans will get the nastiest shock with their electricity prices going up 8.5 per cent and the average household now paying a further $191 to $2436 a year, while Adelaide households will pay on average $70 more a year or $2247 in total. These figures exclude the federal government's $75 subsidy. Under the extension of the Government Energy Bill Relief Fund, every household will get two payments of $75 a quarter automatically applied to their energy bills. Prices will vary depending on where you live, with the maximum price going up by $191. NewsWire / Emma Brasier Credit: News Corp Australia Canstar data insights director Sally Tindall said while it was never fun to read about price hikes, Aussies should 'grit their teeth' and see if they could find a better deal. 'The cold hard truth is that electricity price hikes are pretty much inevitable in states such as NSW, Queensland and South Australia this winter after the regulator approved hikes to the reference prices across all networks in these states,' Ms Tindall said. 'The exact costs for your daily supply charge and electricity rates are up to each provider; however, unless you're on an embedded network or in a state where there are limited options, this is one bill you can, and should, take control of.' Ms Tindall urges households to check the 'reference price' they receive in the next two weeks and compare it with other market offers. 'Electricity bills can often be ridiculously confusing, with daily supply charges, tiered electricity rates, time of day pricing and whether you've got a controlled load,' she said. 'However, if you just want to compare your options without getting into the weeds, the reference price is your friend.'
