Will the RBA cut in February?
The first RBA interest rate announcement of 2012 looms, and all signs point to the butcher’s block.
Expectations
Most of the nation’s economists, journalists and bookies are in agreement that the Reserve Bank will announce a rate cut of 25 points on Tuesday.
For the punters, you’ll get odds of 1.25:1 on a 25 point decrease, with no change sitting out at 3.5.
The ASX rate tracker, which uses trading in cash rate futures to calculate the chance of a rate change, shows the market has been trading with the expectation of a 0.25% rate decrease at the probability of around 80% for the past 10 days.
Reasons
Two big factors are in play at present: the external, global economy and the continuing under-performance of the US and EU; as well as the threat of inflation no longer driving monetary policy decisions.
With the IMF pulling no punches in its recent growth (or lack thereof) forecast, there is growing expectation that the RBA must cut rates to prepare for another tough period. The opposition’s Joe Hockey expects the Board to “do much of the initial heavy lifting and to stimulate economic growth by reducing rates”.
News.com.au journalist, Terry McCrann, sees the expected cut as an “exercise in housekeeping” rather than the signal of crisis – “a statement that inflation is no longer the threat is seemed mid-last year.” He goes on to say that a full pass-on of the cut from all the banks is highly unlikely, a hand forced by the “global financial turmoil” making it more expensive to the banks to raise funds.
Reality
Of course, the final decision rests on the shoulders of Glenn and friends – with the Board never afraid to make the media’s speculation look like just that.
The real ‘interest’ will be in the fallout, rate cut or no, from the banks. Mozo’s “Naughty or Nice” could take on quite a different look in 2012 if ANZ and friends remain true to their word of making interest rate adjustments independent of the RBA’s.
Come back Tuesday, 2:30PM for the announcement!
Read last month's Reserve Bank interest rates update.
Home loan comparisons on Mozo
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Unloan Variable
- Owner Occupier
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5.99
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5.90
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$2,995
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5.99
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5.90
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$0
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$0.00
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$0.00
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yes - free
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yes - free
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no
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Neat Home Loan
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6.09
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6.11
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$3,027
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
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6.09
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$250
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$0.00
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$300.00
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yes - free
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yes - free
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no
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- $80,000
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6.01
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6.14
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$3,001
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6.01
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$134
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$10.00 monthly
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$350.00
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yes - free
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yes - free
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yes
- Maximum loan to value ratio
- 90.00%
- Minimum borrowing amount
- $5,000
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- $10,000,000
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3 Year Fixed Rate Home Loan Special Offer
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5.49
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6.97
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$2,836
Get repayment certainty with Police Credit Union’s 3 Year Fixed Rate Home Loan Special Offer. No annual or monthly fees to pay. Make additional repayments up to $20,000 per year. Available for first home buyers and refinancers. Member owned, but applications open to all Australians.
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5.49
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6.97
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$562
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$0.00
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$150.00
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yes - up to $20,000 p.a.
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yes - free
- Offset account
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no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $250,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
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- Principal & Interest
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Read our Mozo Review to learn more about this 3 Year Fixed Rate Home Loan Special Offer
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Basic Home Loan
- Fixed
- Owner Occupier
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- LVR<70%
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5.59
%
p.a.
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6.01
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$2,867
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.
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5.59
%
p.a.
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6.01
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p.a.
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$350
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$0.00
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$400.00
- Extra repayments
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yes - up to $10,000 p.a.
- Redraw facility
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yes - free
- Offset account
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no
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
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- Principal & Interest
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- Owner Occupier
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Offset Home Loan
- Fixed
- Owner Occupier
- Principal & Interest
- LVR <70%
- Interest rate
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5.59
%
p.a.
Fixed 3 years
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6.24
%
p.a.
- Initial monthly repayment
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$2,867
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5.59
%
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Fixed 3 years
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6.24
%
p.a.
- Upfront fees
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$350
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$248.00 yearly
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$400.00
- Extra repayments
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yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Offset account
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yes
- Maximum loan to value ratio
- 70.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
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- Owner Occupier
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- Monthly
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- -
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Flex Home Loan
- Fixed
- Owner Occupier
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5.79
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Fixed 5 years
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6.20
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$2,931
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- Interest rate
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5.79
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6.20
%
p.a.
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$250
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$250.00 yearly
- Discharge fee
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$300.00
- Extra repayments
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yes - free
- Redraw facility
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yes - free
- Offset account
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yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
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Unloan Variable
- Owner Occupier
- LVR <80%
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5.99
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5.90
%
p.a.
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$2,995
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
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5.99
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5.90
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$0
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$0.00
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$0.00
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yes - free
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yes - free
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no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
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Simple Home Loan Variable
- Owner-Occupied
- Principal and Interest
- LVR<60%
- Interest rate
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5.99
%
p.a.
Variable
- Comparison rate
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5.99
%
p.a.
- Initial monthly repayment
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$2,995
Enjoy a low variable rate with no application, ongoing or monthly fees to pay. Access your money via internet banking at any time with free redraws. Make additional repayments at any time. Available for owner occupied, investment and interest only repayments.
- Interest rate
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5.99
%
p.a.
Variable
- Comparison rate
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5.99
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
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$175.00
- Extra repayments
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yes - free
- Redraw facility
-
yes - free
- Offset account
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no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $3,500,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
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- Weekly, Fortnightly, Monthly
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Mozo experts choice awards won:
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Fixed Express Home Loan
- Owner Occupier
- Principal & Interest
- Interest rate
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5.99
%
p.a.
Fixed 2 years
- Comparison rate
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6.14
%
p.a.
- Initial monthly repayment
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$2,995
Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).
- Interest rate
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5.99
%
p.a.
Fixed 2 years
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6.14
%
p.a.
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$134
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$10.00 monthly
- Discharge fee
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$350.00
- Extra repayments
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yes - up to 20% during the fixed period
- Redraw facility
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yes - free
- Offset account
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yes - partial only
- Maximum loan to value ratio
- 90.00%
- Minimum borrowing amount
- $5,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Fixed
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Mozo experts choice awards won:
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Express Home Loan
- Owner Occupier
- Principal & Interest
- LVR <90%
- Interest rate
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6.01
%
p.a.
Variable
- Comparison rate
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6.14
%
p.a.
- Initial monthly repayment
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$3,001
Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- Interest rate
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6.01
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p.a.
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6.14
%
p.a.
- Upfront fees
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$134
- Ongoing fees
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$10.00 monthly
- Discharge fee
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$350.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
yes
- Maximum loan to value ratio
- 90.00%
- Minimum borrowing amount
- $5,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
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Read our Mozo Review to learn more about this Express Home Loan
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Neat Home Loan
- Owner Occupier
- Principal & Interest
- LVR <60%
- Interest rate
-
6.09
%
p.a.
Variable
- Comparison rate
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6.11
%
p.a.
- Initial monthly repayment
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$3,027
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- Interest rate
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6.09
%
p.a.
Variable
- Comparison rate
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6.11
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$0.00
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $80,000
- Maximum borrowing amount
- $5,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
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Read our Mozo Review to learn more about this Neat Home Loan
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Flex Home Loan
- Owner Occupier
- Principal & Interest
- LVR <60%
- Interest rate
-
6.09
%
p.a.
Variable
- Comparison rate
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6.33
%
p.a.
- Initial monthly repayment
-
$3,027
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- Interest rate
-
6.09
%
p.a.
Variable
- Comparison rate
-
6.33
%
p.a.
- Upfront fees
-
$250
- Ongoing fees
-
$250.00 yearly
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
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yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- -
- Maximum borrowing amount
- -
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
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- Weekly, Fortnightly, Monthly
- Special offers
- -
Read our Mozo Review to learn more about this Flex Home Loan
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Basic Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
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6.16
%
p.a.
- Initial monthly repayment
-
$3,043
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
-
6.16
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special offers
- -
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Offset Home Loan
- Owner Occupier
- LVR<60%
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
-
6.39
%
p.a.
- Initial monthly repayment
-
$3,043
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
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6.39
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
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$248.00 yearly
- Discharge fee
-
$400.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
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yes
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $10,000,000
- Type of mortgage
- Variable
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- Principal & Interest
- Availability
- Owner Occupier
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- Monthly
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Read our Mozo Review to learn more about this Offset Home Loan
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Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
6.54
%
p.a.
Fixed 2 years
- Comparison rate
-
7.10
%
p.a.
- Initial monthly repayment
-
$3,174
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- Interest rate
-
6.54
%
p.a.
Fixed 2 years
- Comparison rate
-
7.10
%
p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge fee
-
$160.00
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $20,000
- Maximum borrowing amount
- -
- Type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special offers
- $3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
Read our Mozo Review to learn more about this Fixed Rate
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Your selected reserve bank interest rates
* 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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