April RBA: Cash rate remains stable but uncertainty abounds

In its April meeting this afternoon, the Reserve Bank of Australia has opted to keep interest rates unchanged at the historic low of 0.25%.

In a statement, RBA Governor Philip Lowe reaffirmed the Board’s target of 0.25% for the cash rate and the yield on 3-year Australian government bonds, while also acknowledging the immense challenges the country currently faces.

“There is considerable uncertainty about the near-term outlook for the Australian economy. Much will depend on the success of the efforts to contain the virus and how long the social distancing measures need to remain in place,” said RBA Governor Philip Lowe.

“There are, however, some signs that markets are working more effectively than they were a few weeks ago. This improvement partly reflects the substantial measures undertaken by central banks.”

The RBA held an emergency meeting on March 18 to discuss the coronavirus outbreak and the resulting economic fallout. The next day, it announced it will be cutting the cash rate ahead of schedule — something we hadn’t seen the Board do even during the global financial crisis. 

The move put the threat to the economy into clear focus. Minutes from the meeting released last week revealed the Board expects a “material contraction” to last through the March and June quarters and potentially beyond that. 

Dr Lowe reiterated that point in today’s meeting, adding that unemployment is expected to increase to its highest level for several years.

In the weeks since last month’s cut, the Federal Government and the nation’s banks have wheeled out a number of support measures to help keep businesses and households out of the red, something the Board has welcomed.

“The coordinated monetary and fiscal response, together with complementary measures taken by Australia's banks, will soften the expected contraction and help ensure that the economy is well placed to recover once the health crisis has passed and restrictions are removed,” said Dr Lowe.

“The Australian financial system is resilient. It is well capitalised and in a strong liquidity position, with these financial buffers available to be drawn down if required to support the economy.”

March interest rate wrap

Home loans

In early March, most lenders opted to pass on the first cut to variable rate customers (70 by our count), but there was very little appetite to do so following the second. Instead, we saw attention shift to fixed rates.

The big banks led the charge, with Commonwealth Bank cutting between 0.20% and 0.70% across its fixed rate suite, NAB cutting between 0.40% and 0.90%, and Westpac cutting between 0.10% and 1.00%.

ANZ, the last of the major banks to move, opted to reduce owner occupier two-year fixed rates by 0.49%. But unlike the others, it also announced it would be extending mortgage relief to variable rate customers in the form of a 0.15% reduction.

The rest of the market was quick to respond, and before long another 70 lenders had made cuts to their range of fixed rate home loans. Below, we’ve compiled some of the top fixed and variable rate offers currently in the Mozo database.

Top fixed rate home loan offers*

Bear in mind that Bank Australia’s Clean Energy Home Loan (Fixed, Package) has lower rates in the 1-3 year categories, but it’s only available under certain conditions.

Top variable rate home loan offers*

For owner occupiers making principal and interest repayments with a max LVR of 80%.

  • 2.39% (2.39% comparison rate*) - Reduce Home Loans Rate Slasher Variable Home Loan
  • 2.44% (2.45% comparison rate*) - Reduce Home Loans Low Rider Home Loan
  • 2.44% (2.49% comparison rate*) - HomeStar Star Essentials Home Loan
  • 2.47% (2.53% comparison rate*) - Well Home Loans Well Balanced
  • 2.49% (2.47% comparison rate*) - Reduce Home Loans Rate Buster High Lend Variable Home Loan

Savings accounts and term deposits

Savings account rates continued to fall last month, with the average ongoing rate now sitting at 0.84% p.a. Online banks ING, ME, and UBank made cuts of between 0.15% and 0.25%, while neobanks 86 400 and Up, which previously offered the joint highest ongoing bonus rates in our database at 2.25%, now offer rates of 2.00% p.a. and 1.85% p.a., respectively.

As for term deposits, many banks decided to increase select rates following March’s second cut as part of a broader attempt to support Australian households. Among the big banks, CommBank, NAB and Westpac raised rates for select terms by as much as 0.65%.

Below are the top five bonus savings account interest rates currently in the Mozo database, along with the top term deposit rates for terms ranging from six months to five years.

Top ongoing savings account bonus offers*

  • 2.00% - BOQ Fast Track Saver Account (Available on balances up to $250,000 if a min. $1000 is deposited into a linked Day2Day Plus Account). 
  • 2.00% - MyState Bank Bonus Saver Account (Available on balances up to $250,000 if a min. $20 is deposited and 5 transactions made using linked Everyday or Glide transaction accounts). 
  • 2.00% - 86 400 Save Account (Available on balances up to $300,000 if a min. $1,000 deposited into a Pay or Save account). 
  • 1.90% - Suncorp Growth Saver Account (Available on balances over $0 when balance grows by $200 or more no more than one withdrawal is made).
  • 1.85% - UBank USaver with Ultra Transaction Account (Available on balances below $200,000 if $200 deposited into either account). 

Top term deposit offers (based on a balance of $25,000)* 

If you’re looking to compare more products, our home loan, savings accounts and term deposit comparison pages can help.

*Rates accurate as of April 7, 2020.

Read about the Reserve Bank's inter-meeting cut in March.

Read last month's Reserve Bank interest rates update.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans using the filters below.
Last updated 14 July 2024 Important disclosures and comparison rate warning*
  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.19 % p.a.
    Variable
    Comparison rate
    6.23 % p.a.
    Initial monthly repayment
    $3,059
    Go to site

    No application or service fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Use multiple Everyday Accounts with 100% interest offset to pay your home loan off sooner.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get 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.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    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.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.19 % p.a.
    Variable
    Comparison rate
    6.23 % p.a.
    Initial monthly repayment
    $3,059
    Go to site

    No application or service fees. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Use multiple Everyday Accounts with 100% interest offset to pay your home loan off sooner.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* 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.

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.