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Speaker 1: Welcome to the Fear and Greed business Interview. I'm sure

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Speaker 1: al mum. The Reserve Bank has kept the official cash

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Speaker 1: rate at four point three five percent since November of

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Speaker 1: last year, and despite moves by many central banks around

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Speaker 1: the world to cut rates or start cutting rates this

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Speaker 1: week in the case of the FED, the Reserve Bank

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Speaker 1: is likely to keep the benchmark here at that level

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Speaker 1: for a few months yet. But in terms of the

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Speaker 1: interest rates we're paying on loans and the rate we

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Speaker 1: are paid on our savings, banks and other landers date

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Speaker 1: actually need the Reserve Bank to move in order to

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Speaker 1: change their own rates. So I wanted to find out

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Speaker 1: what's on offer right now, what the big banks are

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Speaker 1: charging on home loans, who's the most competitive, where the

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Speaker 1: best rates are on offer, and what it means for

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Speaker 1: those with savings in the bank. Rachel Wastell is the

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Speaker 1: personal finance expert at financial comparison site MOSO. Rachel, welcome

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Speaker 1: back to Fear and Greed.

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Speaker 2: Thanks so much for having me, Sean.

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Speaker 1: I don't want to make this personal or anything, but

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Speaker 1: I have fortunately had half my homelan tied up in

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Speaker 1: a fixed rate loan and that is rolling off after

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Speaker 1: four years fairly soon. Where should I be looking? Where

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Speaker 1: are the best deals at the moment, at least in

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Speaker 1: the home borrowing area.

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Speaker 3: Yes, so it's you're very lucky. I guess there are

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Speaker 3: a few people probably still on those fixed rate lines that.

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Speaker 1: Are prescient, Rachel, prescient. It's luck prescients go on.

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Speaker 3: Yes, and I guess jumping off into a six' seven

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Speaker 3: from a what are you?

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Speaker 2: On like a two one two.

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Speaker 1: Three two point one?

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Speaker 2: Nine, yeah, yeah so that can be a bit of a.

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Speaker 3: Shock but the good news is that there are a

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Speaker 3: lot of lenders who are being quite competitive as we

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Speaker 3: get into the spring property season and kind of it

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Speaker 3: is a bit busier and lenders are kind of competing

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Speaker 3: for people at this time of. Year so that's great.

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Speaker 3: News and we actually have seen a lot of the

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Speaker 3: big banks coming through and making some pretty competitive offers

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Speaker 3: for both fixed and. Variable so in a variable, space

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Speaker 3: the lower we have from A big four if you

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Speaker 3: if you kind of want that security of A big

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Speaker 3: four bank Is combank does have a digital only loan

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Speaker 3: for six point one nine, percent so that's quite quite.

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Speaker 3: Competitive but when you do look at other banks on of,

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Speaker 3: us so you can get rates starting with five still

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Speaker 3: you do kind of wonder whether you want to go

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Speaker 3: with a smaller. Lender, yeah AND i think THAT i

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Speaker 3: don't know if that's a concern for, you BUT i

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Speaker 3: know that's a concern for a lot of mortgage holders

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Speaker 3: whether they do shift from a big four to a smaller.

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Speaker 1: Lender, Okay so if the major banks are offering cheaper

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Speaker 1: loans through their digital, channels and that kind of makes,

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Speaker 1: sense it's probably cheaper for them rather than people coming into,

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Speaker 1: branches and that if people do that, anymore do you

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Speaker 1: get all the bells and whistles on those sorts of

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Speaker 1: loans that you might get on your typical standard variable

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Speaker 1: Rate Combalth bank or any of the other big.

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Speaker 3: Four, Yeah so that's where you really do have to

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Speaker 3: look at the frying, pink because a lot of these

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Speaker 3: smaller digital only lenders offer the ability for extra redrawer,

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Speaker 3: facilities extra, repayments the offset. Accounts there are some really

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Speaker 3: competitive smaller brands that are affiliated with or backed by

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Speaker 3: the bigger. Banks say up which is a brand Of.

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Speaker 3: Bendigo they do have the ability to have offset, accounts

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Speaker 3: and they do have quite a competitive rate of five

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Speaker 3: point nine five percent for people with deposits of ten.

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Speaker 3: Percent SO i think there's a few ways that the

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Speaker 3: big force trying and kind of expand their business to

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Speaker 3: get those digital brands offering products that still can provide

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Speaker 3: what the standard offering.

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Speaker 1: Can, okay so what about the smaller? Banks so what

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Speaker 1: are some of the cheaper loans you can?

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Speaker 3: Get, yeah so the some of the smaller, lenders the

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Speaker 3: leading rates we're seeing is at around five point eight nine,

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Speaker 3: percent which is obviously below the six and quite attractive.

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Speaker 3: Rate but, yeah there is that CONCERN i guess from

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Speaker 3: borrowers that they are going with those, smaller less known.

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Speaker 3: Brands but if you're looking for the security from a

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Speaker 3: big and you do want a lower, rate you've got

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Speaker 3: Un loan which is backed BY, cba which is five

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Speaker 3: point nine nine, PERCENT U, bank which is back BY

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Speaker 3: nab at six point one, four and Then timely which

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Speaker 3: is backed By bendigo for five point ninety. Four so

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Speaker 3: there are all rates available starting with.

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Speaker 1: Five the moral of the story shop around really.

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Speaker 3: Yes, Yes and when you're looking at a loan of

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Speaker 3: hundreds of thousands of dollars over twenty five year, term

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Speaker 3: that's you know that small percentage point can actually equate

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Speaker 3: to tens of thousands of dollars more in interest you're

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Speaker 3: paying over the course of the.

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Speaker 1: Loan stay with, Me, rachel we'll be back in a.

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Speaker 1: Minute my guest this morning Is Rachel wastel From, Moso.

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Speaker 1: Okay So i've been talking about variable rate. Loans what

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Speaker 1: about fixed rate?

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Speaker 3: Loans, Yeah so the fixed rate space is we've seen

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Speaker 3: a number of cuts coming through in the fixed rate,

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Speaker 3: space and that's because the expectation is that the cash

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Speaker 3: rate will come, down so banks are now trying to

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Speaker 3: hedge their bets and they're trying to offer attractive rates

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Speaker 3: that may end up being higher than the variable rate

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Speaker 3: ends up in that in that space of. Time so

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Speaker 3: we've seen a lot of cuts in the three year

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Speaker 3: fixed rate, department and the big four banks are actually quite.

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Speaker 3: Competitive they've except FOR a AND, z West, PAK, cba

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Speaker 3: AND nab have all cut their fixed rates within the

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Speaker 3: Since july WHEN nabs started. It SO cba has a

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Speaker 3: rate starting with five for three year fixed five point eight,

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Speaker 3: Nine westpac five point nine to.

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Speaker 2: Nine BUT i guess when you're looking.

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Speaker 3: At A big four once, again you're probably not going

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Speaker 3: to get the lowest. Rate and we actually saw a

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Speaker 3: very small, Lender Southwest Slopes Credit UNION Sws.

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Speaker 2: Bank they introduced a rate last week of four point

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Speaker 2: nine to Nine.

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Speaker 1: Wow a fixed, rate.

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Speaker 2: Yes, correct a three year fixed.

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Speaker 1: Wow so is It Southwest.

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Speaker 3: Southwest Slopes Credit. Union they've rebranded to S W West bank.

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Speaker 3: Recently so, yeah and that's the first time we've seen

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Speaker 3: a rate setting with four Since june twenty twenty.

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Speaker 1: Three, okay so you sort of what you're sort of

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Speaker 1: comparing over the three year period is whatever the variable

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Speaker 1: rate you would pay on average over that three year

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Speaker 1: period versus the fixed year, rate and at four points

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Speaker 1: something OR i mean anything under, five you have to consider. It.

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Speaker 1: Now i'm just rushing to tell listeners we are not

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Speaker 1: an investment. Podcast make sure you go and see your

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Speaker 1: lender before you make any of these sorts of. Decisions,

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Speaker 1: Okay so at least we've got home loan rates going

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Speaker 1: in the right. Direction what about deposit rates savings?

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Speaker 3: Rates, yes so deposit rates have also we've seen a

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Speaker 3: slower cuts come, through specifically with turn. Deposits, now that's

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Speaker 3: because with tern deposits it's kind of like, fixed, Right

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Speaker 3: like the bank needs to hedge their bets and figure

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Speaker 3: out where they think rates will be because when you

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Speaker 3: get a turn, deposit you're locked in and they will

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Speaker 3: pay you that rate for the entire. Term so we

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Speaker 3: are seeing turn deposit rates come. Down so if you

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Speaker 3: can't afford to lock away that, saves that might be

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Speaker 3: worth looking in to get a rate because we used

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Speaker 3: to see recently we were seeing you, know two to

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Speaker 3: five year terms over five and now you cannot get

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Speaker 3: a term deposit on our. Database we can't see a

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Speaker 3: term deposit over five percent for that two to five year, term,

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Speaker 3: Right so you're looking at around five percent max for

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Speaker 3: like a one year term, deposit and the big banks.

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Speaker 2: Are around four or four and a half in THAT tv.

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Speaker 1: Space so who's the five? Percent i'm interested in who that?

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Speaker 3: Is so we've got Four so you've GOT, Hsbc Kudos,

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Speaker 3: BANK Gnc, mutual And heartland are all offering five percent

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Speaker 3: for that one, year.

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Speaker 1: Okay and then when you go out for longer term

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Speaker 1: three five year deposit, rates what are they looking?

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Speaker 3: Like, yeah so they're maxing out just dove four and a,

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Speaker 3: half so around four point seven five four point, eight

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Speaker 3: and then the further you get in the, future about

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Speaker 3: four point six at the, moment so though those longer

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Speaker 3: term term deposits are becoming less, ATTRACTIVE i, guess BUT

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Speaker 3: i think it's important to think about first of, all

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Speaker 3: when you're getting a term, DEPOSIT i want to make

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Speaker 3: sure that, Consumers, no make sure you can lock that

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Speaker 3: away and you don't need.

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Speaker 1: It, yeah because you can't get.

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Speaker 3: It, no you might, lose you might negate all, interest

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Speaker 3: and you also might get a pretty hefty.

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Speaker 1: Feed so, yeah, Okay so talking about, this we've got

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Speaker 1: interest rates coming down on both, sides on savings and

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Speaker 1: on home. Loans if you look hard, enough you will

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Speaker 1: find some pretty good home loan. Deals is the once

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Speaker 1: The Reserve bank starts to cut interest, rates which you'll

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Speaker 1: be into next, year is it likely that rates will keep? Falling?

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Speaker 3: Yeah SO i think what we'll see is we'll see

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Speaker 3: the fixed especially start to come through as we get

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Speaker 3: closer to a. Cut and in that homelan, SPACE i

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Speaker 3: think if THE rba cuts in the banks don't, move

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Speaker 3: they're going to be at least the first one or

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Speaker 3: two you, know banks pretty much going to pass that

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Speaker 3: on BECAUSE i won't want to be risked and called

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Speaker 3: out for being some of them when people are going

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Speaker 3: through a pretty hard, time BUT i think you know

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Speaker 3: TD's we've seen a lot of movements have turned, deposits

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Speaker 3: BUT i think the online savings rates will change very

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Speaker 3: quickly after a move is. Made we've SEEN a AND

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Speaker 3: z recently cut their savings last, week but it was

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Speaker 3: a very slight. Change and, overall the only real kind

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Speaker 3: of cuts we're seeing in the saving space are by

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Speaker 3: those rate, leaders who even if they, cut are still quite.

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Speaker 3: Competitive but once THE rba, cuts that's when you need

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Speaker 3: to kind of check your savings rate and if you

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Speaker 3: are with a leading savings rate, now so if you're

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Speaker 3: with a bonus, rate we've got Me, bank for, examples

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Speaker 3: offering five point five to, five and then you've Got

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Speaker 3: ing and a few other banks offering bonus rates at

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Speaker 3: five and a. Half if you are with those, banks

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Speaker 3: just keep an eye on it because they're the rates

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Speaker 3: that we'll probably move before THE rba.

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Speaker 1: Does, rachel thank you for talking To Fearing.

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Speaker 2: Greed thanks so much for having, Me.

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Speaker 1: Jeanne that Was Rachel, wostel personal finance expert at financial

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Speaker 1: comparison SITE. Moso this is The fear And Greed Daily.

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Speaker 1: Interview join us every morning for the full episode Of

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Speaker 1: fear And. Greed Daily BUSINESS us for people who make

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Speaker 1: their own. Decisions I'm Sean. Elmer enjoy your. Day