Stevens brings home 6th consecutive Cup day rates move

In what has become the only sure-fire bet on Melbourne Cup Day, the Reserve Bank has moved rates, dropping the official cash rate .25 basis points to 4.50%. This is the 6th consecutive Melbourne Cup day rates move by the RBA and the first rates movement it has made since November last year.

In his statement, Governor Glenn Stevens noted that inflationary pressures had eased from where they were a few months ago, and concerns over Australian growth was less warranted now that the rate is sitting at the mid point of its 2 – 3 per cent target range. Also observed was the news that a workable resolution to the European debt-crisis had been reached, and this combined with local economic factors was the evidence the board needed to cut rates.

What will the banks do?

All eyes now fall squarely on the banks to see what they will do (and how quickly they will do it).

Last week Treasurer Wayne Swan sent a verbal warning to the banks to pay heed to the Reserve Bank lead on interest rates saying there was 'no excuse' for banks to leave rates on hold if the RBA cuts rates. Have they been listening fellow Aussies?

It was a year ago that the Commonwealth Bank decided to lift its variable home loan rate almost double the RBA's increase, and earning itself a time out in the Mozo naughty corner. The Mozo Rate Chasers will be tracking the rates announcements of home loan lenders around the clock and updating our naughty or nice table so be sure to bookmark this page and check back in to find out which lenders make (and don't make) it onto Wayne Swan's Christmas card list.

Fixed or Variable?

In recent months many home loan lenders have cut fixed rates meaning that now is a great time to lock in a low fixed rate loan.

Standard variable rates of the Big 4 banks range from 7.67 to 7.86% p.a. Right now borrowers can lock in a one or three year fixed rate for well under 7%. Even if you take into account a .25% drop many fixed rate loans are still cheaper. One year fixed rates start at 5.89% for the Better Option fixed. Lenders with rates under 7% include Greater Building Society (5.94%), Newcastle Permanent (5.99%) and Resi (5.99%).

Three year rates start at 5.89% for the Better Option fixed rate loan. Lenders with rates 6.3% and under include Newcastle Permanent (5.99%), Citibank (6.25%), ANZ (6.28%), ING Direct (6.29%) and Greater Building Society (6.30%). Search the fixed rate home loans market now.

Watch those savings!

While the champagne corks may be popping for Australian homeowners, the news isn't quite so bubbly for savers as the rates drop means that savings rates are likely to head south as well.

There are a number of term deposits still offering rates of over 6% for savers who want to act fast and lock in a good deal. On a $10,000 deposit over 5 years some top rates include:
- RaboDirect Term Deposit – 6.10%
- St George Long Term Deposit – 6.05%

…or compare all term deposits with our market wide comparison search tool.

And if you're looking for a short-term return on your savings or want more flexibility, both the Rabo Direct High Interest Savings Account is currently paying a bonus rate of 6.51% for 4 months.

Read last month's Reserve Bank interest rates update.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 9 February 2025 Important disclosures and comparison rate warning*
What are your home loan needs?

Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Promoted

    Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.05 % p.a.
    Initial monthly repayment
    $2,855
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Fast approval times. Min 30% deposit required. Borrow up to $10,000,000.

  • Promoted

    Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.08 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Promoted

    OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Promoted

    Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,855
    Go to site

    Convenient offset account. No upfront or ongoing fees. Free extra repayments and redraw facility. Fast approval times. Min 30% deposit required. Borrow up to $10,000,000.

  • Promoted

    Basic Variable Home Loan

    • Owner Occupier
    • LVR <60%
    Interest rate
    6.13 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,040
    Go to site

    Competitive interest rate. No ongoing monthly loan maintenance fees. You can redraw your repayments if you’re ahead. Choose to repay weekly, fortnightly, or monthly. Make extra payments without penalty, to pay off your home loan even faster.

  • Promoted

    Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,915
    Go to site

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

  • Promoted

    Fixed Rate Home Loan

    • Owner Occupier
    • LVR<80%
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.21 % p.a.
    Initial monthly repayment
    $2,915
    Go to site

    Get repayment security with fixed rates from one to five years. Free extra repayments of up to $25,000 during the fixed rate period. Fix a portion of your loan and leave the rest variable. Choose to repay weekly, fortnightly, or monthly.

  • Promoted

    Intro Discounted Standard Variable Rate

    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.20 % p.a.
    Variable for 12 months and then 6.60% p.a.
    Comparison rate
    6.56 % p.a.
    Initial monthly repayment
    $3,191
    Go to site

    Enjoy a discount of 0.40% p.a. applied for the first 12 months of the loan. No application, account or establishment fees to pay to help pay. Make additional repayments without being penalised. Other fees may apply. 20% deposit required.

  • Promoted

    Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

Showing 10 results from 423 home loans. Use the filters to see more
image of houses

Want free expert advice on your home loan?

Whether you're looking to purchase a new home or refinance your existing loan, our friends at Aussie can help!

Learn more

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.