RBA keeps official cash rate steady at 2% for Christmas
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%:
Homestar Owner Occupier Loan: 3.94% (3.97% comparison rate)
Mortgage Simple Limited Time Offer Home Loan: 3.89% (4.05% comparison rate)
Auswide Bank Home Loan Plus Special: 3.98% (4.37% comparison rate)
Bank Australia Basic Home Loan: 3.98% (3.99% comparison rate)
Freedomlend Variable Home Loan: 3.98% (4.04% comparison rate)
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. And for tips on how to save this Christmas, check out our Santa Saver Challenge!
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