RBA opts for the safe bet: keeps rates on hold at 1.50%
Interest rates have been kept on hold at 1.50% again this month in new Governor Philip Lowe’s first cash rate announcement.
In a statement, Lowe said, "Inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time."
He also mentioned that, "Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Growth in lending for housing has slowed over the past year."
No one was surprised that with no major economic changes to shake things up, the Reserve Bank opted to play it safe at the October Board meeting - experts almost unanimously disregarded the chance of a change this month, betting instead on a November rate cut.
At that point, after new data on inflation is made available in late October, the RBA will be in a position to re-evaluate and consider the benefits of a further rate cut.
Home loans up in the air
Although many lenders were still gradually lowering rates throughout September, others, reported Mozo Data Manager Peter Marshall, instead made increases.
Despite that, there are still some good deals to be found for savvy borrowers who keep on their toes. Check out where all the best home loan action is this month in the tables below:
Mozo's Pick of the Month | ||
---|---|---|
UBank UHomeloan (Mozo's Experts Choice Award Winner 2016) | 3.64% | 3.64% |
*All home loan rates based on owner occupiers with an LVR of 80%
- 1 year – 3.59% from Greater Bank (comparison rate 4.42%)
- 2 years – 3.59% from QT Mutual Bank (comparison rate 4.42%)
- 3 years – 3.59% from Bank of Queensland (comparison rate 4.99%) and Police Credit Union (comparison rate 4.80%)
- 4 years – 3.74% from Greater Bank (comparison rate 4.34%)
- 5 years – 3.74% from Greater Bank (comparison rate 4.32%)
You can find all the other great home loan offers available in our home loan comparison table.
Savings accounts an outside bet
Even without another rate cut it’s dire times for savers, with interest rates on saving accounts low and getting lower. In September, any action in this arena was mainly banks making further cuts - even term deposit rates, which saw a refreshing rise in August, were slumping once more. But it’s not all bad, and we’ve rounded up some of the best places to stash your cash.
Best savings accounts
Product | Interest rate | Special conditions |
---|---|---|
RaboDirect High Interest Savings Account | 3.20% | Introductory rate for the first 4 months |
Australian Unity Easy Saver | 3.15% | Introductory rate for the first 4 months |
RAMS Saver Account | 3.15% | With a minimum deposit of $200 and no withdrawals in the month |
ME Online Savings Account | 3.10% | When you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard |
Citibank Online Saver | 3.05% | Introductory rate for the first 4 months |
Best Term Deposits
- 5 months - Goldfields Money - 2.95%
- 9 months - Credit Union SA - 3.00%
- 11 months - Bankwest - 3.00%
- 1 year - Big Sky - 3.05%
- 2 years - ANZ (advance notice term deposit) and People's Choice Credit Union - 3.20%
To find more great places to park your stash, check out our saving accounts comparison table, and to keep up to date with the world of finance, don’t forget to subscribe to our monthly newsletter, the Mozo Banking Roundup
Read last month's Reserve Bank interest rates update.
Top home loans - rates updated daily
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% 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.
Smart Booster Home Loan
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.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 2 years2.56% p.a.Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
Basic Home Loan
Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
- interest rate
- 2.09% p.a.
fixed 2 years
- comparison rate
- 2.56% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% 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.
Celebrate Variable Home Loan
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.
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
UHomeLoan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- interest rate
- 1.75% p.a.
fixed 3 years
- comparison rate
- 2.22% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 31 March 2020. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)
LVR<90%, over $150k
interest rate
comparison rate
Initial monthly repayment
1.69% p.a.
fixed 1 year3.49% p.a.Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.
Discount Great Rate Home Loan
Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.
- interest rate
- 1.69% p.a.
fixed 1 year
- comparison rate
- 3.49% p.a.
- Upfront fees
- $180
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - fee applies
- Redraw facility
- yes
- Offset account
- no
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Discount Great Rate Home Loan
^See information about the Mozo Experts Choice Home Loans Awards
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