RBA keeps official cash rate steady at 2% for Christmas

By Kelly Emmerton · · 3 min read
Fact Checked
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Economist’s predictions have proved correct as the RBA announced today that the official cash rate will once again hold steady at 2% throughout the holiday season.

Stable economic times, including a six-month low in the unemployment rate and a rising Aussie dollar have meant that the RBA again saw no reason to lower rates this month. This continues a trend of stability that has been in effect since May 2015, when the last rate change occurred, with the cash rate dropping by 25 basis points.

In a statement Governor Glenn Stevens said that, "Low interest rates are acting to support borrowing and spending. While the recent changes to some lending rates for housing will reduce this support slightly, overall conditions are still quite accommodative."

What does this mean for your home loan?

We have seen a downward trend in fixed rates in the past few weeks, with Commonwealth Bank cutting fixed rates for owner occupiers by 20 basis points for the 5 year term, and Hume Bank cutting all terms from 1 to 5 years by 10 basis points, among many others.

On the other hand, even though the RBA has elected to keep the cash rate steady, many of the big banks put variable rate increases into effect last month.

But it’s not all doom and gloom for variable interest rate borrowers, as there are still some great deals to be found. Here are the top variable rate offers for an owner occupier with an LVR under 80%:

To check out what other deals are on offer, use our home loan comparison tool.

What about your savings account?

While a stable rate is great news for homeowners, it’s not such good news for those saving for Christmas. Over the past few weeks we have seen a slight decline in savings rates from three of the four major banks.

Thankfully, there are still some challenger brands offering competitive deals in the lead up to the festive season.

Here are the top ongoing savings account rates (conditions apply):

  • ME Online Savings Account: 3.55% if you make a weekly purchase using PayPass Tap & Go on your ME EveryDay Transaction Account
  • ING Direct Savings Maximiser: 3.50% if you have an Orange Everyday and deposit $1,000 each month
  • RAMS Saver Account: 3.40% when you deposit $200 per month and make no withdrawals

Here are the top savings accounts with introductory rate offers (conditions apply):

  • RaboDirect High Interest Savings: 3.50% for the first 4 months
  • Citibank Online Saver: 3.40% for the first 4 months
  • Bank of Sydney SuperRate Account: 3.30% for the first 4 months

To find a savings account that will make the most of your cash stash, head over to our savings account comparisons page and get started!

If you’d like to know more about the ins-and-outs of banking, subscribe to our monthly newsletter Mozo Banking Roundup. 

Read last month's Reserve Bank interest rates update.

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Last updated 5 December 2025 Important disclosures and comparison rate warning*
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Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • For first home buyers
    • Offset available
    • Redraw available
    Interest rate
    4.99 % p.a.
    Variable
    Comparison rate
    5.04 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
    • Offset account to reduce interest and save on repayments
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  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.43 % p.a.
    Initial monthly repayment
    $2,712
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.20 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
    5.42 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
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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. 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.

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