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

*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%) 
• 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

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, Commonwealth Bank, NAB, People's Choice Credit Union, Qudos Bank, St.George - 3.20%
• 4 years - Big Sky- 3.25%
• 5 years - RaboDirect - 3.30%

Check out our saving accounts comparison table or term deposit comparison to find other great offers that will nab you a return on your hard earned savings stash.

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