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%

Best fixed rate home loan offers

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

ProductInterest rateSpecial conditions
RaboDirect High Interest Savings Account3.20%Introductory rate for the first 4 months
Australian Unity Easy Saver3.15%Introductory rate for the first 4 months
RAMS Saver Account3.15%With a minimum deposit of $200 and no withdrawals in the month
ME Online Savings Account3.10%When you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard
Citibank Online Saver3.05%Introductory rate for the first 4 months

Best Term Deposits

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

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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  • Hot DealFor a chance to win $100K towards your home loan, apply with Athena before Oct 31 & approved by Dec 15 (Please read the full T&C's)
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    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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    Details
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    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. Minimum 25% deposit required.

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    Details
  • 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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    Details
  • placeholder
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.87% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).

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    Details

* 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.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.