RBA interest rates stay put at 1.50% as March property season begins

The Reserve Bank has opted to keep the official cash rate steady at 1.5% in its March meeting, an outcome expected by the vast majority of economists.

In his statement, Reserve Bank Governor Philip Lowe said, "Conditions in the global economy have continued to improve over recent months. Business and consumer confidence have both picked up."

"The outlook continues to be supported by the low level of interest rates," he added.

Two major factors in the RBA’s policies for the rest of 2017 will likely be Australian house prices - which are still sky high and showing no signs of declining - as well as an expected rate rise from the US Federal Bank at their meeting on March 14 and 15.

While a US rate increase gives the RBA room to hike Australian rates without inflating the Aussie dollar and higher interest rates may decrease mortgage availability and therefore house prices, analysts are largely expecting caution from the RBA and stagnant rates for the rest of the year.

Lock up your home loan: rates on the rise

Despite the RBA keeping interest rates on hold, this is no indication that the banks will keep their rates steady. Mozo has seen a number of home loan rate hikes from banks recently. Investors in particular have had a hard couple of months, being hit with not only rate hikes, but also tightened lending criteria.

And there are likely more rate rises ahead for borrowers, so now may be the time to lock in a fixed rate mortgage. Here are the top offers around at the moment:

Best fixed rate home loan offers
  • 1 year - 3.59% - Greater Bank (comparison rate: 4.42%)
  • 2 year - 3.69% - Bank Australia  (comparison rate: 4.31%)
  • 3 year - 3.59% - Easy Street (comparison rate: 4.01%)
  • 4 year - 3.75% - BCU (comparison rate: 4.24%)
  • 5 year - 4.10% - BCU (comparison rate: 4.37%)

For borrowers who prefer variable rates, there are still some good deals on the table:

Best variable rate home loan offers

Savings hit rock bottom

Although the recent spurt of rate cuts for beleaguered savers has slowed, things still aren’t looking great for Aussies’ rainy days funds. NAB cut the interest rate on its savings account last month, which means all four big banks have now decreased rates in 2017, and the out of cycle rate cuts may continue to pummel savers in coming months.

But it’s not all doom and gloom. For those looking to build up their savings stash, there are still some decent interest rates on offer:

Best savings accounts

Check out our savings account comparison table to see the rest of the deals in the market.

Unfortunately, term deposit rates are also on the decline. Rates on both short and long term offers from a number of providers have been cut in recent months, but for savers who know where to look, there are still some good offers ready to be locked in.

Best term deposits

Find other term deposit options with our term deposit search tool.

You can also take a look at the winners of our recent Mozo Experts Choice Deposit Awards to find the best of the best deals for savers, or stay up-to-date with the latest changes in the world of finance by signing up for our monthly newsletter, the Mozo Banking Roundup.

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

    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. Winner of two Mozo Expert's Choice Awards for 2021.

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    Details
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    Fixed Rate Loan with Orange Advantage

    Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.04% p.a.
    fixed 3 years
    3.60% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees.

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    Details
  • placeholder
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.
    fixed 3 years
    2.24% 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
  • placeholder
    Mozo Experts Choice 2021
    Variable Home Loan Special

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a. variable
    2.12% 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 May 2021. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.

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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
    2.19% p.a. variable
    2.19% 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

*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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