Christmas cheer as RBA keeps cash rate on hold at 2.50%

The Reserve Bank of Australia has left the official cash rate at a steady 2.50% for the 16th consecutive month at the December board meeting today, just in time for Christmas.

Governor Glenn Stevens said: "Monetary policy remains accommodative. Interest rates are very low and have continued to edge lower over the past year or so as competition to lend has increased. Investors continue to look for higher returns in response to low rates on safe instruments. Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise. 

"Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years."

While rates have been on hold since August 2013, economists predict a 2015 rate change with the decision dependent on the performance of the mining and retail industries, as well as the value of the Australian dollar.

Home loan happiness in time for Xmas

Kick off the new year with a great home loan rate by checking out the new lowest rates available for both one-year fixed and variable rate home loans.

Community First’s online brand Easy Street cut its one-year fixed introductory rate from 4.74% to 3.75%, now the lowest one-year fixed rate available.

However, the bulk of activity has been in the variable rate market, where competitors are increasingly trying to one-up each other, to give consumers the best deal.

This month, Heritage Bank introduced the country’s lowest variable home loan rate, cutting a further 30 basis points off its Discount Variable loan, to a rate of 4.39%. The loan is available for amounts greater than $150,000 with a loan-to-value ratio of up to 80%.

Other lenders have also slashed rates, with former rate leader loans.com.au taking six basis points off its Dream Home Loan variable rate to 4.48% and UBank cutting its variable rate by eight basis points to 4.54%.

Visit Mozo's home loan comparison tables to see the other low rate home loans on offer.

Interest-free credit cards for Santa’s big shop

Playing Santa this Christmas will be easy with a range of providers offering interest-free credit cards. Introductory purchase rates of 0% are in fashion this summer, and - if you think you might need some extra cash to make it through to the end of your Advent Calendar - there are plenty to choose from.

The longest 0% introductory purchase rate period is 15 months, available on NAB’s Low Rate Card which has an ongoing purchase rate of 13.99% and $59 annual fee. Citibank Platinum has the same 15-month introductory rate offer but reverts to a 20.99% ongoing purchase rate and $199 annual fee.

To compare more low-rate credit cards, visit Mozo’s credit card comparison tables.

Savings account cuts: the grinch of Christmas

December is the time to start thinking about you finances for 2015. And, if ‘save more’ will make an appearance on your New Years Resolution list, you should pay close attention to your interest rate, because there have been widespread cuts throughout November.

Financial institutions who cut savings account rates last month include: ANZ, Westpac, St. George, BankSA, Bank of Melbourne, CUA, and RAMS.

UBank’s USaver is still the best ongoing bonus rate in the market at 4.02%. The second-best rate of 4.00% comes with the ING Direct Savings Maximiser (if you hold an Orange Everyday account), the Bankwest Hero and the Rabodirect 90 Day Notice Saver.

Newcastle Permanent Online Savings account is still be best unconditional rate, despite the rate being cut by ten basis points to 3.30%.

Has your savings account been ravaged by rate cuts? Compare savings accounts on Mozo to find a better deal.



Top home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
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    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.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
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    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% 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.

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  • Mozo Experts Choice 2020
    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 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.

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  • Mozo Experts Choice 2020
    UHomeLoan

    Owner Occupier, Principal & Interest

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

    $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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  • Mozo Experts Choice 2020
    Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)

    LVR<90%, over $150k

    interest rate
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    Initial monthly repayment
    1.69% p.a.
    fixed 1 year
    3.49% p.a.

    Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.

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*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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