RBA plays Santa cutting the cash rate by 0.25%
The Reserve Bank of Australia delivered Australian homeowners an early Christmas present today, cutting the official cash rate by 0.25% to 3.00%, the lowest it's been since September 2009.
The rate cut was widely predicted and Governor Glenn Stevens said in his statement that over the past year monetary policy has become more accommodative and that a further easing was appropriate as it will help to foster sustainable growth in demand and inflation outcomes consistent with the target over time.
Will the banks play Christmas Scrooge?
Homeowners should be cautious not to get too carried away with early festive celebrations, as analysis by the Mozo Rate Chasers shows that the banks are unlikely to pass on the full 0.25% basis points this month. In fact, our research indicates that since the current rate cutting cycle began in November 2011, the Big 4 banks have only passed on 77% of the Reserve Bank interest rate cuts.
The Big Four are not the only culprits. Other banks and non lenders have passed on just 75% of the RBA's cuts, although their home loan rates continue to be cheaper on average than those offered by the big banks.
Who will make it onto Mozo's Christmas list this year by passing on the full rate cut? We'll be keeping track of the rates announcements of all major lenders and banks so check back here daily to find out which banks have been naughty or nice.
Give yourself an even bigger rate cut.
If you're sick of your bank dragging its heels over miserly fraction of a percent, now is the time to switch lenders. There are far greater savings out there to be had and we've done the shop-around to prove it. Mozo recently ran a mystery shop of all four Big Banks to find out what was really on offer for an average $330,000 home loan. All the banks dropped rates, by an average of 0.75%. That represents savings of over $1,800 a year - or $45,000 over the life of the loan. Check out our free home loan negotiator service - we'll negotiate on your behalf with major lenders to get you a better deal.
5 Lowest Variable Rate home loans:
- loans.com.au Blackboard Special: 5.42%
- UBank UHomeLoan - Refinance only: 5.27%
- Bloom Rate Saver Home Loan: 5.50%
- My Mortgage Freedom Low Rate (LVR 75-90%): 5.53%
- iMortgage iMortgage ProPack: 5.54%
5 Lowest 1 year Fixed Rate Home Loans:
- Greater Building Society Fixed Rate Home Loan (Ultimate Home Loan Package): 4.99%
- UBank UHomeLoan - Refinance only: 5.03%
- iMortgage iMortgage ProPack Fixed: 5.14%
- eMoney Full Doc Fixed: 5.14%
- Mortgage House Advantage Home Loan: 5.19%
Tis not the savings season
Unfortunately the rate cutting cycle is not good news for savers. Already at call savings rates are being slashed and what we have seen recently is that it's the most competitive players (UBank, ING, RAMS) that have cut rates the most.
Right now that top savings rate is for the Citibank Online Saver at 5.35% and this is only a 4 month introductory rate. Other top high interest savings rates include: RAMS Saver 5.15% ($200 monthly deposit requirement, Rabo Direct High Interest Savings 5.11% (4 month intro rate), ING Direct Savings Maximiser 5.10% (4 month welcome rate).
Time to get proactive out there savers. To get the top rates shop around and don't be afraid to switch if you're not getting the best return. Compare all savings accounts on the market now.
Read last month's Reserve Bank interest rates update.
Top home loans - last updated February 27, 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. 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.
CompareCompareSmart 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.
CompareCompareBasic 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
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.34% p.a. variable2.34% p.a.Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
CompareCompareUHomeLoan - Discount Offer
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
- interest rate
- 2.34% p.a. variable
- comparison rate
- 2.34% 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
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- -
- 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 UHomeLoan - Discount Offer
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.^
CompareCompareCelebrate 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
Special Fixed Rate Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.
fixed 4 years3.45% p.a.Ability to split your loan between fixed and variable. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply
CompareCompareSpecial Fixed Rate Home Loan
Ability to split your loan between fixed and variable. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply
- interest rate
- 1.99% p.a.
fixed 4 years
- comparison rate
- 3.45% p.a.
- Upfront fees
- $0
- Ongoing fees
- $395.00 yearly
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $25,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $5,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $2,000 cashback when you refinance your home loan from another financial institution when you apply by 31 March 2021 and are funded by 31 May 2021, min $250k, LVR
Read our Mozo Review to learn more about the Special Fixed Rate Home Loan
^See information about the Mozo Experts Choice Home Loans Awards
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