This week in banking - How to prepare for a cash rate cut

In this week’s banking recap, we brace ourselves for a potential RBA rate cut, and look at the latest moves from banks and providers that will affect you. 

What to do before a cash rate cut

You might not know it, but the cash rate plays a pretty big part in shaping your finances, not to mention the economy, so any talk of a cut is a big deal. And now that the federal election is out of the way, many are tipping June to be the month the RBA finally makes a move. But what are the sorts of things you should be doing in the lead-up to a cut? We provide some tips on how to prepare. 

Term deposits continue to trend downwards

With the interest rate environment set to drop in the coming months, dedicated savers might be eyeing term deposits as an attractive alternative to savings accounts. But if you were planning on scoring a decent rate, you better move quickly. Just this month, we saw 53 providers slash rates for term deposits.

According to Mozo Director Kirsty Lamont, “It’s vital to compare your options to ensure you lock in the best possible rate. By shopping around you can still lock in up to 2.70% for a 1-year term or up to 3.00% for terms of 3 or more years.”

Are credit card late fees hurting your budget?

Does the sting of credit card late fees seem much more painful nowadays? That’s because late fees on many cards have jumped up by as much as 200% in recent years. Ever since a ruling by the High Court in 2016, in which fees of $35 were found to be reasonable, we’ve seen a flurry of providers raising late fees on their credit cards. In fact, there were plenty of hikes this month alone, ranging between $10 and $30. 

Revamped Pension Loan Scheme to help older Aussies

The Federal government has announced the existing Pension Loan Scheme will be getting a facelift . Starting on July 1, eligible retirees will be able to access additional cash flow on top of their pension to help pay for things like care and support services. Our resident property expert, Steve Jovcevski, is optimistic it will help ease the financial stress of many older Australians.

“It can be a real challenge to get loan approval once you’ve retired, so with a fresh scheme like this, it’s likely they’ll be a number of seniors taking up the offer and able to not only keep their property but have the freedom to stay at home longer,” he said.

Need a refresher course on the NBN?

When it comes to the NBN, do you know your FTTC from FTTB? Whether you’ve made the switch already or are still waiting for rollout to reach your neighbourhood, it pays to be informed. Our NBN guide details everything you need to know about the National Broadband Network and what it has to offer. 

ING joins the rate cut party

On the home loan front, ING has cut rates for its Orange Advantage and Mortgage Simplifier home loans by 17 basis points. Owner occupiers borrowing between $500,000 and $999,999 will now be treated to a low 3.63% p.a. variable rate (3.66% p.a. comparison rate*) if they sign up for the ING Mortgage Simplifier home loan.

If you’re wondering how those rates stack up against offerings from other providers, we’ve assembled some options below for you to peruse. And if you want a more comprehensive overview, be sure to check out our variable rate home loan comparison page.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 11 February 2025 Important disclosures and comparison rate warning*
What are your home loan needs?

Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Promoted

    Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.08 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Promoted

    OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Promoted

    Basic Variable Home Loan

    • Owner Occupier
    • LVR <60%
    Interest rate
    6.13 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,040
    Go to site

    Competitive interest rate. No ongoing monthly loan maintenance fees. You can redraw your repayments if you’re ahead. Choose to repay weekly, fortnightly, or monthly. Make extra payments without penalty, to pay off your home loan even faster.

  • Promoted

    Intro Discounted Standard Variable Rate

    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.20 % p.a.
    Variable for 12 months and then 6.60% p.a.
    Comparison rate
    6.56 % p.a.
    Initial monthly repayment
    $3,191
    Go to site

    Enjoy a discount of 0.40% p.a. applied for the first 12 months of the loan. No application, account or establishment fees to pay to help pay. Make additional repayments without being penalised. Other fees may apply. 20% deposit required.

  • Promoted

    Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Promoted

    Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

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*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.


* 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.

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.