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
| Provider | 6 month term deposit | Balance after 6 Months |
| Judo Bank | 1.20% | $10,060 |
| BankVic | 1.15% | $10,058 |
| Firefighters Mutual Bank | 1% | $10,050 |
| Health Professional Bank | 1% | $10,050 |
| Teachers Mutual Bank | 1% | $10,050 |
| UniBank | 1% | $10,050 |
Source: Mozo.com.au 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
| Provider | Product | Best ongoing rates | On $10,000 after 12 Months |
| ING | Savings Maximiser | 1.50% (0.10% base rate) | $10,150 |
| MyState Bank | Bonus Saver | 1.50% (0.15% base rate) | $10,150 |
| Australian Unity | Active Saver | 1.25% (0.25% base rate) | $10,150 |
| MOVE Bank | Bonus Saver | 1.20% (0.25% base rate) | $10,121 |
| Up | Saver Account | 1.10% (0.10% base rate) | $10,111 |
Source: mozo.com.au 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 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.
- 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
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.CompareCompareUHomeLoan
$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 31 March 2020. Receive 1.75% Receive 1.75% 3 year fixed rate when you apply by 26 February 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
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.^
- 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
2.19% p.a.
fixed 3 years2.53% 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.
- 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.
- 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
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