The winners and losers of the RBA rate cut, which are you?


Less than 24 hours after the RBA’s decision to cut rates, lenders have already begun to announce whether they’ll be passing on the cut to their customers. 

According to new Mozo research, the decision to cut the official cash rate this time around will also depict winners and losers across the country. 

Mozo found that home loan holders with stable incomes will be the biggest winners post RBA rate cut, as they’re in a top position to refinance their mortgage to some of the best rates on the market. 

“Another cut to official interest rates will be great news for many home loan customers, with historically low interest rates offering significant opportunities to switch lenders and reduce their monthly repayments,” said Mozo Director Kirsty Lamont.   

Mozo calculated that the average variable home loan rate now sits at 3.19%, down form 3.34% from last month. This means that a $400,000 loan for an owner occupier making principal and interest repayments could see a $33 monthly saving on their mortgage. 

Peering into the database, Well Home Loans currently offers the leading variable home loan rate at a super low 2.17% (2.20% comparison rate*), followed by Reduce Home Loans at 2.19% (2.23% comparison rate*) and Tic:Toc offering 2.19% (2.20% comparison rate*). 

“Perhaps the biggest challenges for people with a mortgage looking to save will be getting comfortable with the names of smaller lenders who continue to offer the most competitive interest rates,” said Lamont. 

On the other hand, avid savers will once again take a hit, with 76 of deposit-takers cutting rates this year and dropping the highest 6 month term deposit to 1.20% from Judo Bank, 54 basis points above the average rate of 0.66%.

Best 6 month term deposit rates 

Provider6 month term depositBalance after 6 Months
Judo Bank1.20%$10,060
Firefighters Mutual Bank1%$10,050
Health Professional Bank1%$10,050
Teachers Mutual Bank1%$10,050

Source: 28 October 2020 at $25,000

In terms of at-call savings accounts, Mozo found that the average ongoing savings rate currently sits at a measly 0.57%. However, ING and My State Bank both share the leading savings rate of 1.50%, while Westpac still offer a rate of 3% to customers under 30.

Top 5 ongoing savings account interest rates

ProviderProductBest ongoing ratesOn $10,000 after 12 Months
INGSavings Maximiser1.50% (0.10% base rate)$10,150
MyState BankBonus Saver1.50% (0.15% base rate)$10,150
Australian UnityActive Saver1.25% (0.25% base rate)$10,150
MOVE BankBonus Saver1.20% (0.25% base rate)$10,121
UpSaver Account1.10% (0.10% base rate)$10,111

Source: 3 November 2020, conditional bonus rates at $10,000

Ready to make the switch to a better home loan deal? Then make your next stop our home loan refinance comparison tool.

Compare refinance home loans - last updated 9 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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.

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