CommBank cuts fixed rates under 3% From today, Commonwealth Bank’s advertised 2 and 3 year (OO, P&I) fixed rates in the “Wealth Package” have been cut to 2.99 per cent pa (Comparison rates from 4.42 per cent pa). Commonwealth Bank have now cut two and three-year fixed rates by 0.80 percentage points since June. The RBA has cut the official rate by 0.75 percentage points. Commonwealth Bank’s variable (OO, P&I) advertised home loan rate has come down by 0.57 percentage points in the same period. All of the big four banks have slashed fixed rates in recent weeks. Banks need “to do the right thing” Treasurer Josh Frydenberg has intensified his attack on the big banks for not passing on the full amount of the RBA’s October rate cut. “It is deeply disappointing the banks haven’t passed on, in full, the latest rate cut,” said the Treasurer. “They ignore the advice of the independent Reserve Bank of Australia and thumbed their noses at Australian consumers. “Australian consumers expect their banks to do the right thing,” said Mr Frydenberg, “Australian consumers need their banks to do the right thing.” “Banks should never be increasing their profits at the expense of their customers. Treasurer tells borrowers – seek the best deal. Treasurer Josh Frydenberg has told Australians who are unhappy with the rate their bank is charging on loans to seek out the best deal elsewhere and switch. The big banks have passed on approximately 0.57 percentage points of the RBA’s 0.75 percentage points of rate cuts since June. “We need the banks to do more,” said Josh Frydenberg. “The best way for the banks to get the message is for customers to seek the best possible deal. “If they do not get it from their existing credit provider, then to go elsewhere.” The Treasurer said new Consumer Data Rights laws will “make that ability to go and seek the best possible deal that much easier.” ING cuts home loan rates under 3% ING has announced cuts to fixed rate home loans effective from 9 October 2019. ING has a two-year fixed rate for owner occupiers of 2.99 per cent pa (comparison rate 4.25 per cent pa). Borrowers can reduce that rate even further with an Orange Advantage package taking the rate down to 2.89 per cent pa (comparison rate 4.23 per cent pa). Since June, ING has cut variable home loan rates for owner occupiers (P&I) by a total of 0.54 percentage points. The Orange Advantage (P&I) variable rate home loan (LVR 80%) has current advertised rates starting at 3.19 per cent pa (comparison rate 3.52 per cent pa). The Mortgage Simplifier home loan now has variable rates for owner occupiers paying principal and interest starting from 3.14 per cent pa (comparison rate 3.17 per cent pa). Read more about ING’s rate cuts at InfoChoice. CUA is market leader in children’s saving accounts. Savings accounts for children are in the news at the moment, mostly because of controversy around Commonwealth Bank’s school banking program, called Dollarmites. Commonwealth Bank dominates the children’s savings account market largely as a result of Dollarmites which is run in 60 per cent of Australian primary schools. “There’s choice for parents and kids in children’s savings accounts,” said Vadim Taube, CEO of InfoChoice, “There’s plenty of other accounts that are great for kids.” One children’s savings account stands out with a current base rate of 3.75 per cent. The CUA Youth eSaver is not available for children under ten but does boast a market leading maximum rate with few terms and conditions. Read more about children’s savings accounts at InfoChoice. National Australia Bank compensation tops $2B. National Australia Bank announced its budget for compensating overcharged customers and customers given bad advice has increased by $1.19 billion to over $2 billion. NAB is compensating customers who were charged excessive fees, or fees for no service, or given unsuitable advice and those who were sold almost worthless credit card and loan insurance. NAB’s acting chief executive, Philip Chronican, said NAB is “moving forward with rigour and discipline to make things right for customers.” New home building might be turning around The number of new homes beginning construction rose 1.1 per cent in the June quarter, the first quarterly rise since 2017, according to the Australian Bureau of Statistics. However, home building activity remains 20 per cent lower than the June quarter 2018. Detached housing commencements are at their lowest level since December 2013. Housing starts fell in all states and territories, except the ACT and Tasmania over the last financial year. Housing starts fell in NSW by 13 per cent, in Victoria by 18 per cent, South Australia by 23 per cent and Queensland by 14 per cent.