The Best Interest Rates for Home and Personal Loans in October

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The Reserve Bank of Australia (RBA) again kept the cash rate this month at an all-time low of 0.10%, but that did not prevent a disruption in the mortgage market.

The Australian Prudential Regulation Authority (APRA) has increased the minimum interest rate cushion banks can use when assessing the usefulness of mortgage loan applications.

This means that instead of testing a borrower’s ability to meet repayments with a 2.5% cushion, they now expect Authorized Depository Institutions (ADIs) to rate it at 3%. . In the future, getting mortgage approval may now be more difficult for some potential borrowers because home values ​​continue to rise, while wage growth remains stagnant.

Meanwhile, lenders across the market have pinpointed variable mortgage rates, with 27 lenders slashing at least one variable rate during the last month. There are still dozens of mortgage rates starting with a “1” up for grabs, including for investors.

And as COVID-related restrictions begin to ease over the next few months, your financial goals could take center stage again. If you are hoping to finance a wedding, vacation, or even home renovations, there is a range of competitive personal loan rates up for grabs.

Speaking of travel, if domestic or international travel is on your bucket list in the next few months (restrictions pending), you might be on the hunt for a new frequent flyer credit card. And credit card providers big and small have big signup bonus point offers to attract new customers.

Let’s explore some of the most competitive interest rate deals for October.

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Variable owner-occupant mortgage rates of less than 2%

The changes to APRA’s cushion rates stem from its recent figures which show that 21.9% of all new loans funded in the June quarter were six times borrower income. This debt-to-income ratio is considered risky by APRA.

For those who are currently paying off a large mortgage, one way to reduce the risk of not being able to pay off your mortgage is to refinance a lower rate option.

While there are risks and costs associated with any major financial decision, lowering your monthly refinancing payments can help free up much-needed cash for your budget. Plus, if the new lender allows you to make additional payments, you may want to continue paying off your mortgage at the original rate, which will help lower your principal – and your debt-to-income ratio – faster.

When the RBA last cut the spot rate in November 2020, there were only six variable rates below 2%. According to RateCity research, there are now 43 home loans with variable rates (principal and interest) below 2%.

These include:

Variable investor mortgage rate less than 2%

On average, investor mortgage rates can be higher than those offered to owner-occupiers. However, if you’re an investor considering refinancing your mortgage, there are still 13 variable home loan rates below 2% (principal and interest) up for grabs, according to the RateCity database.

These include:

Personal loans to finance your post-containment goals

With the light at the end of the COVID tunnel in sight for parts of Australia on lockdown, if you’ve put your plans on the back burner, maybe it’s time to pull them back.

Whether you want to install summer improvements in your home, such as a new swimming pool, automatic awnings or solar panels, or finally plan the wedding of your dreams, a personal loan can help you finance a range of projects or projects. Goals.

Some of the most competitive on the market include:

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Credit cards that reward your return trip

National and international travel has been suspended for many Australians in 2021, but Prime Minister Scott Morrison has announced the opening of international borders from november, loyalty points may become more attractive to credit card customers.

Whether you are traveling for business or want to visit relatives abroad, if you are shopping for a new credit card, it can be worth comparing the benefits it provides to travelers. This can include airline rewards programs offering flight and hotel upgrades, rental car reservations, and overseas medical insurance.

If you’re hoping to get your money’s worth, one way to compare frequent flyer credit cards is to look at the sign-up bonus points offer. Frequent Flyer Bonus Points can help you return to the skies more comfortably by being redeemed for airline program benefits.

Some of the biggest signup bonus points offers for frequent flyer credit cards include:

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