RBA leaves interest rates on hold at 1.50% for Christmas season

The Reserve Bank board has opted to keep interest rates on hold at 1.50% for the festive season in its last meeting of 2016.

The official cash rate has stood at this record low since August, and experts had overwhelmingly predicted the result of today’s announcement, with only a 2% market expectation for a rate cut.

In his statement, Reserve Bank Governor Philip Lowe said, “Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 has been helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are assisting the economy to make the necessary adjustments, though an appreciating exchange rate could complicate this."

He added that, "Inflation remains below most central banks’ targets, although headline inflation rates have increased recently. Globally, the outlook for inflation is more balanced than it has been for some time."

Although inflation and wage growth are both low, the RBA seems to be holding out until next year to make any changes. Analysts have been predicting that the cash rate would reach 1% in 2017, however, many are now forecasting rate hikes by the end of next year, primarily in order to ease rising house prices.

Ba humbug! Banks play Scrooge with home loans

Despite the RBA’s decision to keep interest rates steady at the current low rate, out of cycle rate hikes by certain banks may put them on borrowers’ naughty lists. According to Mozo’s Banking Roundup, 19 lenders have increased rates in the last few weeks, including big banks Westpac and CBA.

But it’s not all bad news for borrowers - there are plenty of good deals to be found for those willing to look. To help you out, here are some of the best home loans at the moment:

The Grinch that stole savings

Savers haven’t seen much relief lately, with a number of banks cutting interest rates on savings accounts and short term deposits. As a minor consolation for long term savers though, there wasn’t much change either way on term deposits of a year or longer.

Notably, ANZ was the only bank to raise rates on a savings account, boosting the introductory offer on its Online Saver Account, from 2.75% for 3 months to 2.85% for 6 months.

But as with home loans, there are still some good deals to be snapped up by savvy savers. Here are some of the best places for your rainy day fund:

Best savings accounts

  • RAMS Saver Account " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="3">Saver Account - 3.15% (with a minimum deposit of $200 and no withdrawals in the month)
  • ME Online Savings Account - 3.05% (when you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard)
  • Australian Unity Active Saver - 3.00% (with a minimum deposit of $250 and no withdrawals in the month)
  • Police Bank Bonus Savings Account - 3.00% (with a minimum deposit of $100 and no withdrawals in the month)
  • CUA eSaver Reward - 2.90% (when you deposit $1,000 into a CUA transaction account in the month)

See our savings account comparison table to check out the other great offers on the market.

Best term deposits

Check out other term deposit options with our term deposit search tool.

Read last month's Reserve Bank interest rates update.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 16 March 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Basic Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.89 % p.a.
    Variable
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,962
    Go to site
    • No ongoing fees
    • Free redraw from your loan using Macquarie Online
    • No account management fees
  • Promoted

    Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • RATE CUT NOW LIVE!
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
  • Switch & Save One Year Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Offset available
    • Redraw available
    Interest rate
    5.54 % p.a.
    Fixed 1 year
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • No penalty for early payout
    • No penalty for making additional payments
    • 100% Savings Offset facility
  • Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 30% min deposit
    • Redraw available
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    5.85 % p.a.
    Initial monthly repayment
    $2,855
    Go to site
    • No ongoing fees
    • Free redraw from your loan using Macquarie Online.
    • No application or account management fees
  • Offset Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 30% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.08 % p.a.
    Initial monthly repayment
    $2,855
    Go to site
    • Open up to 10 offset accounts
    • No fee to redraw or split into multiple loan accounts
    • Variable and fixed rates available
  • Switch and Save Home Loan

    • Owner occupier
    • Principal & Interest
    • Offset available
    • Redraw available
    Interest rate
    5.64 % p.a.
    Variable
    Comparison rate
    5.75 % p.a.
    Initial monthly repayment
    $2,883
    Go to site
    • No penalty for early payout
    • No penalty for making additional payments
    • 100% Savings Offset facility
  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.00 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available
  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Simple Home Loan Variable

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.74 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • No application, ongoing or monthly fees
    • Make additional repayments at any time
    • Access your money via internet banking at any time
Showing 9 results from 417 home loans. Use the filters to see more

* 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.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.