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
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.

Top home loans - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.13% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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    Details
  • Hot DealFor a chance to win $100K towards your home loan, apply with Athena before Oct 31 & approved by Dec 15 (Please read the full T&C's)
    placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account.

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    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

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    Details

* 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, loan amount and term entered. 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.