RBA keeps rates on hold at 3.00%
At its first board meeting of 2013, the Reserve Bank has kept rates on hold at 3.00%, despite calls from Australia's housing developers that an additional interest rate cut is needed to stimulate the declining housing market.
In his statement, Reserve Bank Governor Glenn Stevens said that, "sentiment in financial markets has continued to improve, with risk spreads narrowing and funding conditions for financial institutions becoming more favourable."
However he noted that "the inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand."
Why wait for the RBA to get a rate cut?
Borrowers don't need to wait until next month's RBA meeting to get a rate cut on their home loan. Right now, home owners can snap up a great interest rate and save on their home loan repayments. Two of the market's most aggressive lenders UBank and loans.com.au have current variable rate offers of 5.12% (refinance only) and 5.09% respectively.
How much would you save by switching? Let's assume you are on Westpac's Rocket Repay Home Loan with an interest rate of 6.51%. On a $300,000 home loan over 25 years, by switching to the Loans.com.au 5.09% Blackboard Special you would save $257 a month or $80,293 over the life of your loan.
To find out how much you can save try Mozo's Home Loan Comparison Calculator or talk with one of our expert home loan negotiators. Mozo has negotiated exclusive home loans deals with some of Australia's leading home loan lenders and we will negotiate on your behalf to get you a top deal on your home loan.
Market's top home loan rates:
Best Variable Rate Loans:
Loans.com.au: Blackboard Special 5.09% (5.12% comparison rate)
UBank: UHome Loan (Refinance Only) 5.12% (5.12% comparison rate)
mymortgage freedom: low rate (up to 75% LVR) 5.23% (5.54% comparison rate)
iMortgage: Propack 75 (up to 75% LVR) 5.24% (5.59% Comparison rate)
Rate Busters Ultimate 5.34% (5.35% comparison rate)
Best 1 year fixed rates (nb: some loans require variable / fixed split)
4.99% : Resi Flexi Fix, Greater Building Society Fixed Ultimate Home Loan Package, Newcastle Permanent Fixed Rate, ME Bank Fixed Members Package
Best 2 year fixed rate
Best 3 year fixed rate
Good news for Savers
No rate cuts means good news for savers who were slammed by the back to to back rate cuts of 2012. There are still a few accounts out there offering over 5% but the banks are demanding a bit of loyalty from you to get it.
Top 3 savings rates
ME Bank Online Savings Account: 5.10% special rate (12 month bonus rate)
ING Direct Savings Maximiser: 5.00% (4 month welcome rate)
Citibank Online Saver: 5.00% (4 month welcome rate)
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