RBA's May decision: cash rate cut to record low 2.75%
To the jubilation of homeowners across the country, the Reserve Bank of Australia has today decided to cut the official cash rate by 25 basis points to 2.75%, taking the cash rate to a record low.
In a statement, Governor Glenn Stevens said 'further decline in the cash rate was appropriate to encourage sustainable growth in the economy, consistent with achieving the inflation target'.
Break down the Bankworld jargon for me, please!
Today's decision appears to be first and foremost a reaction to less than optimal inflation figures, with recent data suggesting that both headline and underlying inflation are close to dropping below 2%, and thus out of the Reserve Bank's target zone.
April also saw a drop in house prices and an increase in consumer and investor stress, weighing heavily on the retail and investment sectors.
The Board's decision therefore seems to be an attempt to boost consumer confidence and incentivise growth, both of which will hopefully fend off an inflation blow-out.
What does this mean for borrowers?
Keep a close eye on your bank - in order to see which banks pass on the full 25 basis point cut, check out our Naughty or Nice table.
If your institution ain't playing fair, think about switching and potentially saving big time.
And for savers?
Expect at call savings account rates to drop, but don't be content with a poor rate. If your bank isn't giving you a good deal, don't be afraid to scout around and find a better option for you and your hard-earned cash.
Consider popping your dough into a high-interest savings account. Top options this month include:
- Bankwest Regular Saver: 5.50% (must deposit between $50 and $500 per month)
- RAMs Saver: 5.01% (minimum deposit of $200 per month)
- ING Direct Savings Maximiser: 5.00%
Read last month's Reserve Bank interest rates update.
Top home loans - rates updated daily
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
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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.
Smart 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.
Basic 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.
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- 2.09% p.a.
fixed 2 years
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- 2.56% p.a.
- Upfront fees
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- $0.00
- Discharge Fee
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- 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
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Read our Mozo Review to learn more about the Basic Home Loan
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.
Celebrate 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
UHomeLoan
Owner Occupier, Principal & Interest
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Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
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- 1.75% p.a.
fixed 3 years
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- 2.22% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 31 March 2020. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)
LVR<90%, over $150k
interest rate
comparison rate
Initial monthly repayment
1.69% p.a.
fixed 1 year3.49% p.a.Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.
Discount Great Rate Home Loan
Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.
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fixed 1 year
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- 3.49% p.a.
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- $180
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - fee applies
- Redraw facility
- yes
- Offset account
- no
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
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- Weekly, Fortnightly, Monthly
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- -
Read our Mozo Review to learn more about the Discount Great Rate Home Loan
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