Mozo Money Moves: More Aussies turning to personal loans

Welcome to Mozo Money Moves, your weekly snapshot of the latest financial news, and what’s changed in personal finance. Let’s get started.?

Personal Loan Moves

According to the Australian Bureau of Statistics (ABS), more and more Australians are taking out personal loans to finance their lives, from businesses to housing to personal projects like home renovations.?

Car loans continue to be popular, too, but the search for EVs has kicked up a gear after new research shows petrol prices have jumped 14% in the year to August. Yikes!

Mozo Money writer Jacob Wong warns that while personal loans can be a great source of extra funds when needed, there’s much to consider before applying.?

“The amount you can borrow will depend on some factors,” writes Wong. “For example, having a good credit score means that you’ll likely be able to take out more money.”

Mozo Insights:

• According to the ABS, personal fixed-term loan commitments rose to 6.10% in August.
• What do drivers need to know about buying an EV with a personal loan?
• Selling your vehicle? Here’s what car buyers are looking for.?

Home Loan Moves

Home loans have had a relatively quiet week this week. Lenders continue to make minor adjustments to variable and fixed home loan offers as the Reserve Bank rate hold continues. Still, chatter has heated up that there’s a greater-than-nothing chance of another rate hike in November.?

It’ll depend highly on inflation figures whether the RBA decides to hike official interest rates again. Indeed, three of the Big Four banks still believe we’re maxed out for this rate cycle. Still, the potential is enough to make some lenders (and many borrowers) a little skittish. Stay tuned.?

Lowest Variable Rate Home Loans

Compare home loans with Mozo

Mozo Insights:

• No, seriously. Even refinancing down 0.25% p.a. could save you thousands.
• PropTrack's latest Market Insight Report reveals November as the best month to sell property nationwide.
• Could you find a better home loan deal by looking beyond the Big Four? Let’s do a home loan rate check.?

Savings Accounts Moves

Term deposits have been top of Mozo’s mind this week. Since the RBA began hiking interest rates in May 2022, term deposits have become increasingly competitive regarding sheer interest rate value for savers.?

However, now that the RBA has begun holding the cash rate steady at 4.10%, banks have begun slipping rates back, particularly on longer terms. However, an interest rate isn’t the only thing to draw customer eyes, says Mozo Money Writer Cameron Thomson .

“Some accounts will be fairly flexible on whether their interest is paid monthly or at maturity,” writes Thomson. “So, depending on your financial circumstances, you may want to look at what else a provider may be offering.”

Term deposit interest rates

Compare savings accounts with Mozo

Mozo Insights:

• Judo Bank has been the leader in term deposit rates for a while. However, Judo has been dropping its rates since the RBA began to hold the cash rate at 4.10%. So, is it still the frontrunner for term deposits, or is there a new kid on the block?
• Australians are cutting back on spending to meet the upcoming Christmas holiday costs.
• Is it better to have your term deposit interest paid out monthly, or at maturity? Let’s break down the pros and cons.?

As a part of Mozo’s commitment to making your money count for more, we “round up” the rate changes, key banking trends, and money moves in the Australian personal finance market each month.?

We’ve included a snapshot of some of the top rates on offer in the market at the moment, but you can subscribe to receive the Mozo Banking Round Up in full, including expert analysis.

Disclaimer: Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice. While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.