The rate that stops a nation! RBA keeps official cash rate steady at 2%
After plenty of speculation in the lead up to the Reserve Bank of Australia’s November meeting, the board has decided to leave the official cash rate steady at 2%.
This is the fourth consecutive year the RBA has left the official cash rate on hold on Melbourne Cup Day and comes after the big banks raised mortgage rates last month in a bid to meet capital requirements by APRA.
Home loan roundup
Big bank rate hikes
Over October we saw the big four banks - CommBank, ANZ, NAB and Westpac - announce they will be lifting their variable interest rates for both owner occupiers and investors this month in a bid to raise capital by July 1 next year. Soon after, smaller providers St.George and Macquarie followed suit.
Home loan rates under 4%
While there was a trend of rate increases over October, the good news is at the time of writing there are currently 19 lenders offering enticing variable interest rates under the 4% mark including Click Loans, iMortgage, UBank and Yellow Brick Road. Keep in mind, many of these low rates are reserved for owner occupiers, so if you’re investor you can check out some of the cheapest investment loan deals here.
Want to compare our entire home loan database? Then kick off your search by using our home loan comparison tool.
Savings account sweep
While the RBA keeping the official cash rate at record lows is good news for borrowers, the same unfortunately can’t be said for savers. The average savings account rate is already sitting at a low of 2.30% but thankfully there are still some competitive savings account deals currently out there, including...
Top ongoing deals:
RAMS Saver Account: 3.60% when you make no withdrawals and deposit over $200 a month
ING DIRECT Savings Maximiser: 3.50% if you have an Orange Everyday and deposit over $1,000 each month
Top intro rate deals:
RaboDirect High Interest Savings Account: 3.50% for the first 4 months
St.George Maxi Saver: 3.50% for the first 3 months
For more great savings deals, head on over to our savings account section.
That was just a taste of what’s happening in the banking world. To read more about new incentives, product changes and the leaders when it comes to price, subscribe to our monthly newsletter the Mozo Banking Roundup.