RBA March Decision: cash rate remains at 2.50%

There were no surprises from the Reserve Bank today, as the cash rate was kept on hold at 2.50% for the seventh consecutive month at the RBA's monthly board meeting.

Governor Glenn Stevens said "monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.."

Should borrowers sit tight?

Just because the official interest rate is at a standstill it doesn't mean that you can't get a better deal. In fact, because of the low interest rate environment banks are going the extra mile to get new customers. There are now over 20 providers offering tempting sweeteners to lure new customers so it's the perfect time to make the switch and score a better home loan.

Top home loan offers this month include:

  • UBank: Apply by 6 March to receive a $2,014 EFTPOS gift card when your loan reaches settlement.
  • St. George: $1,250 rebate plus 1% p.a. discount on loans of $500K or more
  • Greater building Society: Choose from a choice of three holidays when you switch to its Low Rate home loan
  • Teachers Mutual Bank: Apply by 31 March to receive a $750 up-front fee waiver
  • Westpac: Up to 1% p.a. discount on standard variable rate
  • ANZ: Up to 0.90% p.a. discount on standard variable rate
  • NAB: 0.85% p.a. off home loans $500K and above. 0.80% p.a. off home loans $250K-$499,999.
  • RAMS: 1% p.a. lifetime discount on variable rate
  • Illawarra Credit Union: 1% p.a. lifetime discount off standard variable rate

To find out just how much money you could save by switching home loans, try Mozo's free award-winning Switch & Save Calculator. We compare your home loan against the market and show you how much you could save by switching, try it now here.

Is there any good news for Savers?

Unfortunately Term deposit rates are falling faster than Autumn leaves and according to Mozo's Rate Chasers there were 74 rate reductions last month for terms less than one year. The story isn't any better for at-call savings accounts either with some providers pulling back on their introductory rate offers. The average intro rate now stands at 4.02% p.a.. Survive the rate slump with one of the following deals:

Compare more savings account on the Mozo site here.

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, <70% 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.

    A hot new super low introductory rate home loan for two years with no monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team. min 30% deposit.

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    Details
  • placeholder
    UHomeLoan (1 Yr Fixed)

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.75% p.a.
    fixed 1 year
    2.31% p.a.

    Fast, easy apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.

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    Details
  • 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 off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

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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.

    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
  • placeholder
    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st July 2021. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.

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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.