RBA slashes cash rate to 2% after Easter break

By Rebeccah Elley · · 2 min read
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The Reserve Bank of Australia Board has met for its post Easter meeting and has slashed the official cash rate by 0.25 basis points to 2%.

While some economists tipped the official cash rate would be left on hold until May, the cut has come early due to several economic factors including a slump in iron ore prices, rising unemployment and weak consumer confidence, with the Board aiming to lower the Australian dollar further and stimulate the economy.

Governor Glenn Stevens said in a statement, “xxx”

Mortgage movers

Since the RBA Board lowered the official cash rate in February there has been plenty of action in the home loan world.

Now’s a good time to fix your home loan with a range of competitive deals, such as Hume Bank’s tempting 3.6% 1 year fixed rate, Newcastle Permanent’s 3.89% 2 year fixed rate, as well as its 3.99% 3 year fixed rate. And let’s not forget Homestar who recently slashed an impressive 120 basis points off its 4 year fixed rate home loan to 4.35% and 125 basis points off its 5 year rate down to 4.40%.

Homestar also shone in the variable rate world, alongside loans.com.au with a variable rate of just 4.23%. However, the real star was Mortgage House cutting the competition with its 4.19% variable interest rate (only available for LVR’s less than 50%).

Want to find the mortgage winner for you? Compare home loans in a flash with Mozo’s home loan comparison tool.

Savings account heroes

With savings account rates sitting below the 4% mark, savers have been hit hard by the RBA’s decision to cut the official cash rate to record lows. But with the right account you can still see your cash stash soar.

RAMS continues to deliver the best ongoing savings account rate (with conditions), keeping its Saver at a competitive 3.91%. If you’re a new customer ME Bank will reward you with a tempting introductory rate at 3.85%. And if you’re a ‘no-strings attached’ kind of saver, Rural Bank ONE’s Saver has the best rate at 3.00%.

Want to see more savings account heroes? Head on over to Mozo’s savings accounts hub to compare deals today.


Read last month's Reserve Bank interest rates update.

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Last updated 17 September 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
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    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
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    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.99 % p.a.
    Fixed 2 years
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • 3 Year Special Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    This home loan is available for purchase or refinance, complete with 1, 2 or 3 year fixed rate options. Minimum 10% deposit required.

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* 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.

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