RBA December decision: Christmas cheer as cash rate remains at 2.50%

The RBA board decided not to play Christmas grinch today at its December board meeting, leaving the official cash rate on hold at 2.50%.

Governor Glenn Stevens said "recent information is consistent with global growth running a bit below average this year, with reasonable prospects of a pick-up next year...the Board will continue to assess the outlook and adjust policy as needed."

Will the banks be naughty or nice?

While the RBA has left rates untouched for another two months, that doesn’t mean that Australia’s banks and credit unions are going to do the same. While there has been little movement on variable rates, last month we saw long term fixed rates jump, with the average 5 year fixed rate 6 basis points higher.

The cheapest five year fixed rate on the market is now 5.44% with Mortgage House or Intouch Finance, while the cheapest one year fixed rate is 3.99% (5.35% comparison) with IMB (for loans of more than $300,00 with an LVR of less than 90%.

Just because the RBA didn’t move on rates it doesn’t mean that its a time for complacency. Even small cuts in interest rates can make a big difference to your holiday shopping budget. For instance, say you have a $300,000 home loan with an interest rate of 5.12%. By switching to a loan just .50% points lower at 4.62%, you could save an extra $87 a month, or enough to pay for Christmas next year with an annual savings of $1044. Why not see how much you could save with our home loan comparison calculator?

Switching is easier than ever with Mozo’s Home Loan Negotiator service. We have pre-negotiated rates starting from 6.64% (4.66% comparison) so let our expert hagglers wrangle the best possible deal for you and your money.

Cheers to savers

It’s been a tough year for savers this year as we watched the record low rates wipe away our interest earnings. Cheers to your persistent efforts and cheers goes to the banks which are still offering great rates. 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.

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    Details
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    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.

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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
    2.43% 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.

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    Details
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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
    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.

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    Details
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    Fixed Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    2.15% p.a.

    Award-winning low rate home loan that could save you thousands. No application or ongoing fees, fee-free redraws, unlimited additional repayments and an optional offset account for $10/month. Minimum 10% deposit. Winner of Mozo’s Experts Choice Award for Online Home Lender of the Year 2021.^

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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.

^See information about the Mozo Experts Choice Home Loans Awards

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