RBA boss says now is a good time to buy your first home
RBA governor Philip Lowe has indicated that now is a good time for first home buyers to get a foot on the property ladder, saying that current conditions have titled the market decidedly in their favour.
Speaking at a parliamentary panel in Canberra on Wednesday, Lowe was asked if young Australians should take advantage of the current interest rate environment and consider purchasing their first home.
While he was reluctant to provide any sort of financial advice, the RBA boss admitted that “it's actually a good time, if you're a first home buyer, to buy the property you've wanted.”
"And many first home buyers must agree with me because demand from first home owners at the moment is very strong,” he said.
Along with record low rates, there are several government programs designed to help young Australians, including the First Home Owners Grant, which subsidises the purchase or construction of new homes, and the First Home Loan Deposit Scheme.
Lowe brushed aside concerns that an influx of buyers would send prices soaring, arguing that growth in the market will be restrained by international border closures and weak population growth.
He also weighed in on the federal government’s proposal to revise responsible lending obligations, saying it’s “the right direction to be heading in.”
The changes hope to free up the flow of credit by allowing banks to take applicants at their word when disclosing income and spending, rather than relying on their own verification processes.
How is the economy faring?
At the same panel, Lowe was fairly upbeat about the direction the country was heading, saying that economic performance had exceeded expectations and recovery was underway.
The latest figures show the economy growing in both the September and December quarters. He also told the parliamentary committee the RBA expects GDP to grow by 5% next year and then by 4% over 2022.
While these are promising developments, Lowe said the path to recovery will be “uneven and bumpy,” with some parts of the economy faring better than others.
The labour market continues to struggle, with unemployment currently sitting at 7% and expected to remain above 6% in two years’ time. Wages will likely remain subdued until jobs recover.
And while confidence has picked up on news of a vaccine, Lowe said the central bank did not believe it will be widely available to most Australians until late next year.
If your job is secure and you’re confident you can service a mortgage, browse our first mortgage guide for helpful tips. And to get an idea of the rates currently available, visit our home loans comparison page, or browse the selection below.
Home loan comparisons on Mozo - last updated January 23, 2021
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.CompareCompareSmart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.34% p.a. variable2.34% p.a.CompareCompareUHomeLoan - Discount Offer
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
- interest rate
- 2.34% p.a. variable
- comparison rate
- 2.34% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% p.a.CompareCompareCelebrate Variable Home Loan
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 2 years2.56% p.a.CompareCompareBasic Home Loan
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
- interest rate
- 2.09% p.a.
fixed 2 years
- comparison rate
- 2.56% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Fixed Home Loan Special Offer
Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.89% p.a.
fixed 2 years2.94% p.a.CompareCompareFixed Home Loan Special Offer
Competitive low rates starting from 1.89% (2.94% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.
- interest rate
- 1.89% p.a.
fixed 2 years
- comparison rate
- 2.94% p.a.
- Upfront fees
- $0
- Ongoing fees
- $375.00 yearly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free up to $500 per month
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Fixed Home Loan Special Offer
^See information about the Mozo Experts Choice Home Loans Awards
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