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- Homestar Owner Occupier Loan - 3.49% (comparison rate: 3.53%)
- FreedomLend Variable Home Loan - 3.53% (comparison rate: 3.53%)
- loans.com.au Essentials Variable - 3.59% (comparison rate: 3.61%)
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- ME Online Savings Account - 3.05% (when you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard)
- AMP Bett3r Save Account - 3.00% (with a minimum deposit of $2,000 per month into linked Bett3r Pay Account)
- Australian Unity Active Saver - 3.00% (with a minimum deposit of $250 and no withdrawals in the month)
- ING DIRECT Savings Maximiser - 3.00% (when you also have an Orange Everyday and deposit $1,000 each month)
- RAMS Saver Account - 3.00% (with a minimum deposit of $200 and no withdrawals in the month)
- Newcastle Permanent Smart Saver Account - 3.00% (when you increase the account balance by $150 (excluding interest) and make no more than two withdrawals in the month)
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
- 1 year - 3.00% - Teachers Mutual Bank, Unibank
- 2 year - 3.10% - Maitland Mutual Building Society, BankVic, Qudos Bank
- 3 year - 3.20% - Maitland Mutual Building Society, St.George, Qudos Bank, Greater Bank, CommBank, Bank of Queensland, Bank of Melbourne, BankVic, BankSa
- 4 year - 3.20% - Arab Bank Australia
- 5 year - 3.30% - RaboDirect
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.
Read last month's Reserve Bank interest rates update.
Top home loans - last updated February 27, 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. variable2.47% 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.
CompareCompareSmart Booster Home Loan
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.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 2 years2.56% 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.
CompareCompareBasic Home Loan
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.
- interest rate
- 2.09% p.a.
fixed 2 years
- comparison rate
- 2.56% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.34% p.a. variable2.34% 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.
CompareCompareUHomeLoan - Discount Offer
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.
- interest rate
- 2.34% p.a. variable
- comparison rate
- 2.34% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% 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.^
CompareCompareCelebrate Variable Home Loan
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.^
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Special Fixed Rate Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.
fixed 4 years3.45% 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
CompareCompareSpecial Fixed Rate Home Loan
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
- interest rate
- 1.99% p.a.
fixed 4 years
- comparison rate
- 3.45% p.a.
- Upfront fees
- $0
- Ongoing fees
- $395.00 yearly
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $25,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $5,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $2,000 cashback when you refinance your home loan from another financial institution when you apply by 31 March 2021 and are funded by 31 May 2021, min $250k, LVR
Read our Mozo Review to learn more about the Special Fixed Rate Home Loan
^See information about the Mozo Experts Choice Home Loans Awards
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