RBA announcement: Official cash rate on hold at 2.5%

The Reserve Bank of Australia has left the official cash rate at a steady 2.5% for the 14th consecutive month.

Governor Glenn Stevens said in a statement that financial conditions remain very accommodative. "Long-term interest rates and risk spreads remain very low. Markets still appear to be attaching a low probability to any rise in global interest rates or other adverse event over the period ahead."

The historic low cash rate isn’t expected to change until sometime next year, as the RBA seeks alternative measures to deflate the booming property market.

Savings account shakeup

With interest rates at record lows, earning juicy returns on your cash stash has been difficult. ANZ recently reduced the bonus intro rate on its Online Saver from 4 months to 3 months and CommBank cut its ongoing bonus rate on its Goal Saver account from 4.00% to 3.81%.

However, competition for your bank account has brought some enticing offers into the savings sphere that are well worth a look.

On 1 October, ING DIRECT ditched its intro bonus rate offer on the Savings Maximiser, in favour of a 4.00% ongoing interest rate, as long as you link the savings account to its Orange Everyday bank account and deposit $1,000 a month.

UBank has also introduced a similar scheme, where you’ll receive a 4.17% ongoing interest rate, the highest in the market, when you open a USaver Ultra (Ultra and linked USaver) and deposit $200 each month.

Are you accruing a measly savings account rate with your current provider? It’s time to shake up your savings by searching the savings account market for a great rate.

Home loan rate cuts continue...

On the opposite end of the financial spectrum, home loans offer competitive interest rates for homeowners with many below the 5% mark.

Newcastle Permanent takes out the top spot for its 3.79% for 1 year, 4.39% for 2 years, 4.49% for 3 years fixed rate home loans, while eMoney offers an impressive 4.77% for its fully fixed 4 or 5 year home loan. Once again, loans.com.au offers the lowest variable rate with its 4.54% Dream Home Loan Variable.

And the interest rate cuts continue with Newcastle Permanent Building Society, Greater Building Society and IMB making cuts to all fixed terms. Newcastle made the largest slash to its 1 year rate totalling 60 basis points during September, while Greater cut 40 basis points off their 4 year rate.

ANZ was the only Big 4 to make a cut with its variable rate, dropping 6 basis points on its Simplicity Plus loan, down to 5.12%.

Take advantage of record low interest rates by searching the home loan market here.

Read last month's Reserve Bank interest rates update.

Top home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.95% p.a.
    fixed 3 years
    2.27% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.

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  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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* 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, loan amount and term entered. 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.

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