This week in banking - The RBA drops the cash rate to 1.00%

In this week’s banking recap, we revisit Tuesday’s RBA rate cut, and take a look at all the moves that have been made in the home loan market since.

The RBA cuts the cash rate to 1.00%, a historic low

At its meeting in Darwin this Tuesday, the Reserve Bank decided to cut official interest rates for the second month in a row, the first time it’s done so since 2012. 

While back to back cuts might signal weakening confidence in the economy, RBA Governor, Philip Lowe maintained an optimistic tone in his official statement.

“Today's decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target,” he said.

Big 4 outperformed by smaller lenders

In the few days since, we’ve seen plenty of lenders making reduction to variable home loan rates, but only a handful have opted to pass on the full cut. 

ANZ impressed us by announcing it will be lowering rates by 0.25% - welcome news after last month’s 0.18% cut - while the other three major banks made reductions of between 0.19% and 0.20%.

At the moment, online lenders are still the ones to watch, especially considering some are offering rates below 3% mark. Homestar and Athena, for example, pounced on the chance to pass on the full rate, while loans.com.au followed suit only a few days later.

Who is Australia’s favourite online grocery service?

This week we also crowned Woolworths our Mozo Experts Choice Online Grocery Service of the Year. Our panel of judges considered price, range, ordering experience and delivery, and in all four categories Woolworths came out on top. 

Woolies also performed spectacularly in last month’s Mozo People’s Choice Awards, going to show that it’s not just a hit with the experts, it’s pretty beloved by everyday Australians too.

Big changes in store for the energy market

This month will herald a number of key changes in the energy market. Most notably, AGL has announced it will be taking steps to make its pricing much more transparent, starting by scrapping pay on time discounts, which many have found to be more predatory than useful. 

This month’s rate cut will see home loan rates dropping further, so if you’re looking at your home loan and despairing, now might be a good time to look at what other options are available. Check out some of the options below, or visit our variable rate home loan comparison page for a more in-depth look.

Home loan comparisons on Mozo - last updated 16 April 2024

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  • Offset Home Loan

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

    variable rate
    comparison rate
    Initial monthly repayment
    6.15% p.a.
    6.40% p.a.

    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.

    Compare
    Details
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    variable rate
    comparison rate
    Initial monthly repayment
    6.01% p.a.
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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    Details
  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    variable rate
    comparison rate
    Initial monthly repayment
    6.14% p.a.
    6.16% 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.

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    Details
  • Basic Home Loan

    Owner Occupier, LVR 60-70%, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    6.15% p.a.
    6.17% p.a.

    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. 30% Deposit required.

    Compare
    Details
  • Flex Home Loan

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

    variable rate
    comparison rate
    Initial monthly repayment
    p.a.
    6.37% 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

* 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

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