RBA February meeting: New Year, new official cash rate!

The Reserve Bank of Australia has met for its first Tuesday board meeting of 2015, cutting the official cash rate to 2.25%.

In a statement Governor Glenn Stevens explained that for the past year and a half, the cash rate has been stable, as the Board has taken time to assess the effects of the substantial easing in policy that had already been put in place and monitored developments in Australia and abroad. 

"At today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate. This action is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target."

The rate change comes after the RBA board left the official cash rate a historic low 2.5% for 17 months. Where rates go over the year will depend largely on unemployment data, the housing market and petrol prices. So watch this space…

Home loan low down

Looking for a sharp rate loan? Then you’ll be happy to hear a handful of providers have joined the rate cut party in the New Year.

Heritage Bank shook 40 basis points off its Standard Variable (now 4.89%, 5.00% comparison rate*) and Discount Variable loans (now 4.59%, 4.64% comparison rate*) for the life of the home loan. Get in quick because the offer is available for a limited time!

And in the fixed rate world, Greater Building Society shimmied 5 basis points off its 2 year loan to 4.34% (5.21% comparison rate*) and threw a generous 15 basis points off its 5 year loan to 4.54% (4.87% comparison rate*).

See more wow-worthy interest rates in Mozo’s bustling home loan hub here.

*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.

Credit card keepers

If you just received a shocking post Christmas credit card bill, a balance transfer or introductory rate credit card could be just what your finances need. In fact, there are more BT and introductory rates on offer now, than there were before Xmas!

You’ll get plenty of breathing room with Citibank’s generous 0% balance transfer offer for 24 months, plus the Platinum card comes with complimentary perks like concierge, travel insurance and purchase protection.

If you prefer banking with the Big Four, check out NAB’s 0% for 12 months offer for both purchases and balance transfers, Westpac’s 0% for 14 months balance transfer (16 months on Mozo) and 0% for 3 months introductory purchase rate and ANZ’s 0% for 16 months balance transfer rate available on its Low Rate, Low Rate Platinum, and Platinum cards.

Ready to ditch the Christmas debt? Head on over to Mozo’s balance transfer hub here.

Savings superstars

While some providers have made recent cuts to their savings account rates, thankfully there are still a few accounts that can help see your savings soar in 2015.

UBank’s USaver remains the best ongoing bonus rate in the market at 4.02%, followed by ING DIRECT’s Savings Maximiser (if you hold an Orange Everyday account), or Bankwest’s Hero at 4.00%

And you can enjoy money for nothing with Citibank’s Plus Transaction Account 5% cashback offer (up to $500 per month) on Visa payWave “tap and go” transactions under $100, as long as you deposit $2,000 or more a month. Get in quick the offer expires after 31 May 2015!

Rescue your savings in 2015, by searching our savings account hub for a great deal. 

Top home loans - rates updated daily

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

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

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

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    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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    Details
  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.

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    Details
  • Mozo Experts Choice 2020
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.75% p.a.
    fixed 3 years
    2.22% p.a.

    $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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  • Mozo Experts Choice 2020
    Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)

    LVR<90%, over $150k

    interest rate
    comparison rate
    Initial monthly repayment
    1.69% p.a.
    fixed 1 year
    3.49% p.a.

    Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.

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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.

^See information about the Mozo Experts Choice Home Loans Awards

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