Popular bet pays off: RBA keeps rates on hold at 1.50%
The Reserve Bank have kept interest rates on hold at 1.50% again in their Melbourne Cup day announcement, following stronger than expected third-quarter inflation numbers.
Consistently low inflation was one of the main factors behind recent predictions surrounding the Reserve Bank board’s decision. Although inflation remains below the RBA target of 2-3%, it showed considerable annual growth — apparently enough that the RBA saw no reason to shake things up with a cut on Melbourne Cup day.
Experts now largely expect that rates will stay steady until 2017.
Home loans up in the air
With interest rates stuck at an all time low of 1.50%, it’s a good time for borrowers — though this is reflected in sky high auction clearance rates and property prices in Sydney and Melbourne. That’s why it’s as important as ever to make sure you’re not paying too much on your mortgage, but the good news is there are some great deals out there for borrowers keen to get their hands on a property.
Take a look at some of the best home loan offers at the moment in the tables below:
Best variable rate home loan offers
|Product||Variable rate||Comparison rate|
|Reduce Home Loans Rate Buster Variable home loan||3.35%||3.42%|
|Homestar Owner Occupier loan||3.36%||3.49%|
|Loans.com.au Essentials Variable home loan||3.39%||3.41%|
|Mortgage House Special Variable Home Loan||3.49%||3.93%|
|FreedomLend Variable Home Loan||3.53%||3.53%|
*All home loan rates based on owner occupiers with an LVR of 80%
Best fixed rate home loan offers
- 1 year – 3.59% from Greater Bank (comparison rate 4.42%) and QT Mutual Bank (comparison rate 4.82%)
- 2 years – 3.59% from QT Mutual Bank (comparison rate 4.74%)
- 3 years – 3.49% from My Credit Union (comparison rate 4.16%)
- 4 years – 3.74% from Greater Bank (comparison rate 4.34%)
- 5 years – 3.74% from Greater Bank (comparison rate 4.32%)
Check out all the other great home loan offers available in our home loan comparison table.
Savings accounts an outside bet
The low rate environment isn’t so kind to savers, who have been seeing pretty dismal returns on their rainy day finds for some time now. Although they’ve escaped yet another rate cut this month, savvy savers will need to keep their wits about them to find the best return on their money. Here are some of the best places to stash your cash:
Best savings accounts
|Product||Interest rate||Special conditions|
|RAMS Saver Account||3.15%||With a minimum deposit of $200 and no withdrawals in the month|
|ME Online Savings Account||3.05%||When you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard|
|Bank Australia Bonus Saver||3.00%||With a minimum deposit of $100 and no withdrawals in the month|
|Police Bank Bonus Savings Account||3.00%||With a minimum deposit of $100 and no withdrawals in the month|
|CUA eSaver Reward||2.90%||When you deposit $1,000 into a CUA transaction account in the month|
Best Term Deposits
- 6 months - ME - 3.10%
- 9 months - ME - 3.00%
- 1 year - Big Sky - 3.05%
- 2 years - ANZ (advance notice term deposit) and People's Choice Credit Union - 3.20%
- 3 years - Bank of Melbourne, BankSA, Big Sky, Commonwealth Bank, NAB, People's Choice Credit Union, QT Mutual Bank, Qudos Bank, St.George - 3.20%
- 4 years - Big Sky - 3.25%
- 5 years - RaboDirect - 3.30%
And if you want to stay in touch with what’s happening in the world of finance, you can subscribe to our monthly newsletter, the Mozo Banking Roundup.
Switch & Save Calculator
Compare savings from over 100 credit cards.
How much could you save by switching your credit card?
Find out in a few clicks.