Highest Savings Rates and Lowest Home Loan Rates for November

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The Reserve Bank of Australia raised the cash rate for the seventh consecutive month in November, causing more pain for homeowners, but celebration for savers.

With the cash rate now standing at 2.85%, 275 basis points higher than April 2022, millions of Australians are likely looking for the best interest rate deals for their needs and budgets.

If you’re paying off an adjustable-rate home loan, chances are your repayments will be much higher than they were just a few months ago. However, with most mortgage increases taking about 20-30 days to start from the moment you receive your notification letter, there may be further budget cuts to come.

And if you locked in a fixed rate before the latest hikes, you might be looking at the market and wondering how to protect your budget from the dramatic spike in mortgage repayments on the horizon. If either of these scenarios sound familiar, you might want to consider comparing your options and comparing lower rate home loans.

At the same time, savings accounts and term deposits are offered with interest rates starting with a ‘4’ for the first time in years. So if you’re still earning close to zero interest, it may be worth looking for a more competitive option.

The lowest variable rate home loans for homeowners

In a rising rate environment, if you currently live in the home you own but are struggling to meet your mortgage payments, it may be worth it compare your options and consider refinancing.

Keep in mind that if you’re on a fixed rate, it’s worth comparing your options two to three months before the end of the fixed term, as settlement may take some time.

At the time of writing, the RateCity database shows that the following variable rate home loans (principal and interest) are the lowest available to homeowners following the November rate hike:

1. Bank First Full Home Loan – 4.19% (comparison rate 4.22%)

2. Bank Australia Core Home Loan – 4.24% (comparison rate 4.28%)

3. Hume Bank liteBlue Variable Home Loan – 4.24% (comparison rate 4.24%)

Note: These are the lowest rates expected to take effect following the November spot rate hike. At the time of publication, some rates may not yet be online.

The lowest variable rate mortgages for investors

If rising rates and increased expenses are eroding the potential return on your investment, it may be worth considering lower rate options for your mortgage. Although interest repayments may be considered a tax deduction for investorsit’s always money out of your pocket in every repayment cycle.

At the time of writing, the RateCity database shows that the following variable rate home loans (principal and interest) are the lowest available to investors following the November rate hike:

1. Bank Australia Core Home Loan – 4.54% (comparison rate 4.58%)

2. Hume Bank liteBlue Variable Home Loan – 4.59% (comparison rate 4.59%)

3. Bank First Full Home Loan – 4.59% (comparison rate 4.62%)

Note: These are the lowest rates expected to take effect following the November spot rate hike. At the time of publication, some rates may not yet be online.

High Interest Savings Accounts

The only good news about higher interest rates is that they usually translate into higher rates offered on savings products. And after years of near-zero interest rates, any improvement is worth celebrating.

Whether you’re a fixed and forgetful saver or qualify to earn the highest rate, it’s important not to settle for just your savings account, as there may be higher rates available.

At the time of writing, these are the highest interest rates offered on savings accounts on the RateCity database following the November rate hike:

1. ING Savings Maximizer – 4.30%

2. MOVE Bank Growth Saver – 4.00%

3. St. George/BOM/BankSA Incentive Saver – 4.00%

12 month term deposits with high interest rate

There are several term deposits on the RateCity database now offering rates starting with a ‘4’. If you’re wondering how much you could earn by locking up your funds on a fixed term rate, our research shows that with a balance of $20,000 over a 12 month term, you could earn an extra $840 on your nest egg in just one year.

At the time of writing, these are the highest interest rates offered on 12 month term deposits on the RateCity database (for all adults – no age limit) following the increase in cash rates in November:

1. G&C Mutual Bank 12 month term deposit – 4.20%

2. Gateway Bank 12 month term deposit – 4.20%

3. Judo Bank 12 Month Term Deposit – 4.20%

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