The rate that stops the nation: Cash rate remains at 2.50%

At its monthly meeting today, the board of the Reserve Bank of Australia decided to leave the official cash rate on hold at 2.50%.

In a statement, Governor Glenn Stevens said "there has been an improvement in indicators of household and business sentiment recently, but it is still too soon to judge how persistent this will be."

What exactly does that mean, Mr Stevens?

Unlike the punters at Flemington, the board of the Reserve Bank didn’t want to take a gamble on the recovering Australian economy. Thanks to the flow on effects from the earlier rate cuts in August and May, the economy is starting to show healthy signs of growth. Plus, the Big Banks are reporting improved consumer and business confidence - particularly in the housing market.

Nevertheless, Stevens’ has hinted that the Reserve Bank is open to rate movements in the not-too-distant future with pundits predicting a new round of rate changes early next year - stay tuned folks!

What’s news for borrowers?

Borrowers betting on a rate cut need not be disappointed by today’s RBA decision. Rates continue to be at record lows but if you are thinking of fixing your home loan, now would be a good time to lock in rates as we saw 10 banks move their fixed rates up in October by over 20 basis points. Longer term fixed rates are moving the quickest and there is still time to lock in some good 1 & 2 year fixed options.


If you’re after a top notch variable home loan, check out the Mozo exclusive rate offer of 4.65% p.a. (4.68% comparison rate) with leading home loan lender Firstmac. Click here to find out more about this red hot home loan deal.

And for savers?

Savers wishing to cash in their Melbourne Cup winnings can find great rates for their stash by looking around. Here are our top picks:

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

    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. variable
    2.47% 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. Winner of two Mozo Expert's Choice Award for 2021.

    Go to site
    Details
  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.75% p.a.
    fixed 3 years
    2.22% 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.

    Go to site
    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
    2.43% 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.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

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

    Go to site
    Details
  • Hot Deal$3,000 cashback when you refinance with Virgin Money (T&Cs apply)
    placeholder
    Special Offer Reward Me Fixed Rate Home Loan

    Owner Occupier, LVR <80%, 300k+

    interest rate
    comparison rate
    Initial monthly repayment
    1.94% p.a.
    fixed 2 years
    2.77% p.a.

    Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.

    Go to site
    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.

^See information about the Mozo Experts Choice Home Loans Awards

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.