RBA leaves the official cash rate at 2% again - but will it last?

The Reserve Bank of Australia has announced the cash rate will remain at 2% in March, for the tenth month in a row, although many economists are predicting that the streak won't last.

Despite turbulent global conditions last month plus domestic figures that show a rising unemployment rate and lowered expectations for business investments, experts say the domestic market is relatively stable, which has been reflected in the RBA board’s decision to hold the cash rate at 2% yet again.

Governor Glenn Stevens said, “the expansion in the non-mining parts of the economy strengthened during 2015 despite the contraction in spending in mining investment. This was reflected in improved labour market conditions. The pace of lending to businesses also picked up."

He added that "the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target."

Even so, experts have predicted that low growth and inflation, combined with the potential of the Aussie dollar to rise, will prompt the RBA to cut rates later this year.

Stevens didn't discount the possibility, saying, "continued low inflation would provide scope for easier policy, should that be appropriate to lend support to demand."

Home loan rundown

Although the official cash rate remains on hold, Aussie borrowers should avoid becoming complacent, and always keep one eye on their own mortgage situation to ensure they’re getting the best possible deal.

For example, our home loan comparison calculator shows that on a $500,000 home loan over a 25 year period, switching from the average home loan rate of 4.73% to the lowest in Mozo’s database of 3.86%, could save a homeowner over $73,000 in interest.

To help borrowers find the best deal for them, our experts have identified some of the top home loans in the Mozo database:

Variable rates

Variable rates have been creeping up during February, but there are still some great deals to be found, with a wealth of lenders offering rates under the 4% mark, including:

Fixed rates

On the other hand, fixed rates have been more likely to drop, with selective cuts from a number of lenders. Some of the best deals to be found include:

Check out all the other great deals available in our home loan comparison hub.

Savings account summary

The low interest rate market has not been kind to savers with the average savings account rate now sitting at just 2.36%.

Luckily, Mozo held its Experts Choice Awards in February and revealed the savings accounts which provide the best return for a customer’s money.

For those searching for a savings account with a high ongoing bonus rate, Mozo’s experts identified these accounts as a few of the best:

Another way Aussies can effectively save is by taking advantage of great introductory bonus rates. Some of the winners of a Mozo Experts Choice Award in this category included:

You can find the full list of Mozo Experts Choice Savings Account Award winners here, or use our savings account search tool to find the perfect place to stash your cash.

For those wanting a higher return on their money, peer-to-peer lender RateSetter is currently searching for investors and is offering Aussie savers a return of up to 9.8% p.a on 5 year investments. For a saver with $10,000 built up, this could earn them over $5,000 more than the average savings account would in the same time. Click here to find out more.

For more information on all things financial, subscribe to our monthly newsletter, the Mozo Banking Roundup.

Top home loans - last updated February 27, 2021

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.

    Compare
    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.

    Compare
    Details
  • Mozo Experts Choice 2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a. variable
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

    Compare
    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.^

    Compare
    Details
  • Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    fixed 4 years
    3.45% p.a.

    Ability to split your loan between fixed and variable. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply

    Compare
    Details
placeholder

Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

Get Started

^See information about the Mozo Experts Choice Home Loans Awards

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.