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

rba-winners-and-losers

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
BankVic1.15%$10,058
Firefighters Mutual Bank1%$10,050
Health Professional Bank1%$10,050
Teachers Mutual Bank1%$10,050
UniBank1%$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

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: 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 26 February 2024

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

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details
  • Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.52% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Compare
    Details
  • Straight Up

    Obliterate, Investor, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.34% p.a. variable
    6.34% p.a.

    Investors get a low variable rate depending on your deposit with Athena’s Straight Up Investor Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.