Personal Loans Snapshot: February 2022

As we head into 2022 and reflect on how personal loan interest rates have evolved over the past two months, we’ve seen several cut rates come out.

We’ve also seen the ever-growing list of low-interest loans available to purchase eco-friendly products continue to grow, with the addition of a new green car loan from MOVE Bank.

More generally, in recent months there has been a trend towards the introduction of risk-based pricing among lenders – such as ING, which has adopted the model on its single loan option.

Looking at the latest release of ABS lending indicators, there was a 0.7% increase in fixed-term (seasonally adjusted) personal loan commitments in December 2021. A sharp drop from the increase in 4.5% in November of fixed-term personal loans from the month before.

In addition, the statement reports a 0.6% decrease in new loan commitments for road vehicles, as well as a massive 17.4% increase in the value of new loan commitments for investment. staff.

Personal loan interest rate changes:

Here’s what’s been happening lately in terms of personal loan interest rates and offer changes:

Lower interest rates:

  • As the only lender to change its personal loan rates since our last update, Hume Bank has cut its secured personal loan fixed option by 100 basis points, bringing it down to 5.95% per annum (comparative rate 6.16% per year*). He also reduced his fixed unsecured personal loan by 100 basis points, which now stands at 9.95% per annum (comparative rate of 10.17% per annum*).

Other changes:

  • Latitude has increased application fees on its secured and unsecured personal loans, up from $49 to $299.

Ended offers:

  • The Commonwealth Bank has removed its application fee waiver offer that was available to students.

Which lenders stand out?

Once again we find that the lenders with the lowest interest rates on personal loans in the Mozo database are Community First Credit Union, Alex Bank, Transport Mutual Credit Union and Credit Union SA – which shows that smaller banks and credit unions are where they are if you want a more competitive rate.

What about reputable lenders?

Over the past month, we haven’t seen any major movement among the major banks’ personal loan interest rates. It’s also worth noting that the rates from the big banks tend to be much higher than those from most competing lenders.

Currently, we see the Commonwealth Bank variable unsecured personal loan interest rate at just 9.00% per annum, a significant jump from the lowest interest rate in the Mozo database. 3.99% per year.

Variable rate big 4 personal loans:

Currently, the lowest major bank variable rate personal loan interest rate in the Mozo database is the NAB (variable, unsecured) personal loan, at 6.99% per annum (rate comparison rate of 7.91% per year *).

As for the highest major bank variable rate personal loan in the Mozo database, it would be the Commonwealth Bank Unsecured Variable Rate Personal Loan at 11.50% per annum (comparison rate of 12.38% per year*).

Big 4 fixed rate personal loans:

In terms of fixed rate personal loans, the lowest fixed rate from the major banks in the Mozo database is none other than the personal loan (fixed, unsecured) from NAB, which offers a fixed rate of 6.99 % per year over 3 years (comparative rate of 7.91% per year). *).

The highest fixed rate major bank personal loan in the Mozo database again belongs to the Commonwealth Bank, with its unsecured (fixed) personal loan, which has a 3-year fixed rate of 9.00% per year (comparison rate of 9.90% per year*) .

Personal loan rate to note in February:

Looking for more personal loan options? Then take a look at our personal loan comparison tool, where you can start comparing personal loan options right away!

Written by: Rhianna Dews, Personal Loans Editor, February 1, 2022.

* DISCLAIMER: The comparison rate combines the lender’s interest rate, fees and charges into one rate to show the true cost of a personal loan. The comparative rates displayed are calculated on the basis of a loan of $30,000 with a term of 5 years or a loan of $10,000 with a term of 3 years as indicated, on the basis of repayments monthly principal and interest payments, on a secured basis for secured and unsecured loans. basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal fees or prepayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may affect the cost of the loan.

^ See Mozo Experts Choice Personal Loan Awards information

Mozo provides general product information. We do not take into account your personal goals, financial situation or needs and we do not recommend any particular product. You must make your own decision after reading the PDS or offering literature, or after seeking independent advice.

Although we pride ourselves on covering a wide range of products, we do not cover every product on the market. If you decide to request a product through our website, you will be dealing directly with the supplier of that product and not with Mozo.

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