No fooling around for RBA: Cash rate remains at 2.50% at April meeting

The Reserve Bank of Australia board surprised no one with the announcement today that it was keeping the official cash rate at 2.50% for the eighth consecutive month.

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

Borrower bargains

With housing prices continuing to soar nationwide, it's good news that interest rates remain at record lows. Banks are competing aggressively for new business so borrowers are in the hot seat when it comes to choice of lenders.

The market's best home loan rates are still with the non-majors. Loans.com.au has the lowest variable rate at 4.49% (4.51% comparison). The best fixed rates are with IMB (1 year at 3.99%) and eMoney (2 years at 4.65%).

Finding out how much you could save by switching loans doesn't have to be difficult. Try Mozo's Switch & Save Calculator. We've done all the hard work so that all you need to do is type in a few simple details like loan size and we'll show you how much you could save by switching.

If you want to talk to a home loan expert directly, try our free home loan negotiator service by calling 13 MOZO (13 6696).

Savers Saviours

Savings rates in general remain in the doldrums but there are still some providers who are offering special rates above 4.00% if you meet set criteria.

UBank USaver with Ultra will pay 4.62% as long as you deposit $2000 a month into the account and if you deposit at least $200 and make no withdrawals you'll get 4.11% interest with the RAMS saver. Other top offers include ME Bank's Online Savings Account which will pay 4.60% bonus interest for 5 months (must be linked to ME everyday transaction account) and ING Direct's 4.35% bonus welcome rate for 4 months.

To compare all savings rates head over to our savings account comparisons here

Read last month's Reserve Bank interest rates update.

Top home loans - last updated 29 March 2024

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

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Compare
    Details
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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    Details
  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 2 years
    6.24% p.a.

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

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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. You can change the loan amount and term in the input boxes at the top of this table. 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 Loan Awards

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