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 February 27, 2021

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

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

    variable rate
    comparison rate
    1.99% p.a.variable for 12 months and then 2.48% p.a.
    2.47% p.a.

    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.

    Compare
    Details
  • Basic Home Loan

    Owner Occupier, LVR<80%, Principal & Interest

    variable rate
    comparison rate
    2.64% p.a.
    2.64% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    Compare
    Details
  • Mozo Experts Choice 2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.34% p.a.
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    Compare
    Details
  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.19% p.a.
    2.19% p.a.

    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.^

    Compare
    Details
  • Discounted Variable Home Loan

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    2.94% p.a.
    3.34% p.a.

    Enjoy a great low rate with no ongoing fees. Ability to split your loan between fixed and variable. 100% offset account. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.

    Compare
    Details
  • Well Balanced

    Owner Occupier, Principal & Interest, LVR <80%

    variable rate
    comparison rate
    2.17% p.a.
    2.20% p.a.

    Well Balanced home loan is a low rate home loan with free online redraw and no valuation fee. Purchase, Refinance or Equity Release purposes allowed.

    Compare
    Details
placeholder

Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

Get Started

^See information about the Mozo Experts Choice Home Loans 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.