RBA keeps rates on hold at 3.00%

By Mozo · · 2 min read
Fact Checked
Advertiser disclosure

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
5.04% iMortgage

Best 3 year fixed rate
5.12% Resi

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)

Compare savings accounts.

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 24 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    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.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Budget Home Loan

    • LVR <80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.07 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

Showing 6 of 430 home loans. Use the filters to see more
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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.

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.