RBA freezes interest rates at 1.75% as winter hits

After last month’s shock interest rate cut to 1.75%, things are calming down again for the Aussie economy, as the Reserve Bank announced rates will remain on hold throughout June.

After the minutes from May’s RBA meeting revealed some <a href="https://www.theaustralian.com.au/business/opinion/stephen-bartholomeusz/the-rba-wont-be-swayed-by-a-fed-rate-hike-delay-for-now/news-story/dd795e8d2fccb6974b9fd5ef38f0548f" data-ldtx_html="division amongst the RBA Board " class="ldtx-link-good ldtx-link-good-external-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="0">division amongst the RBA Board concerning the last cut, it was no surprise to most experts that this month brought no change. An unexpectedly strong March quarter for GDP numbers, which soothed fears about low inflation, as well as a renewed surge in housing prices spurred on by last month’s rate cut likely contributed to the decision to keep interest rates on hold.

In a statement, RBA Governor Glenn Stevens said "In financial markets, conditions have generally been calmer for the past several months following the period of volatility early in the year."

"Taking account of the available information, and having eased monetary policy at its May meeting, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time," he added.

Whilst this was the expected outcome of the RBA’s announcement for most experts, many are predicting that 2016 hasn’t seen its last interest rate cut just yet. Many economists are forecasting another cut - down to a landmark 1.5% - later this year, with August, September or November as popular bets so far.

Home loans are heating up

Last month’s RBA rate cut saw borrowers come out on top, as 41 lenders followed suit and passed on the full 0.25% reduction to rates. However, borrowers can’t afford to be negligent of their home loans, as many other lenders gave the rate cut the cold shoulder, and passed on only partial cuts.

It’s also worth noting, said Mozo Data Manager Peter Marshall, that even lenders who passed on the full rate cut didn’t necessarily do so on all their home loan products. “Investors in particular may have missed out, and it’s worthwhile for Aussie borrowers to review their mortgage rates, to ensure they’re still getting the best deal on the market.”

Best variable rate home loan offers

ProductVariable rate
FreedomLend <a href="https://mozo.com.au/home-loans/information/freedomlend/Variable-Home-Loan/5512" data-ldtx_html="Variable Home Loan " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="1">Variable Home Loan3.73%
UBank <a href="https://mozo.com.au/home-loans/information/ubank/UHomeLoan---Offer/3790" data-ldtx_html="UHomeLoan - Value Offer " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="0">UHomeLoan - Value Offer3.74%
Newcastle Permanent <a href="https://mozo.com.au/home-loans/information/newcastle-permanent/Variable-Home-Loan-Premium-Plus-Package/3786" data-ldtx_html="Discounted Variable Home Loan Premium Plus Package " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="1" data-ldtx_trust="1" data-ldtx_power="1">Discounted Variable Home Loan Premium Plus Package3.74%

*All home loans rates based on owner occupiers with an LVR of 80%

Best fixed rate home loan offers

  • 1 year fixed rate: 3.50% (Comparison rate 4.13%) - <a href="https://mozo.com.au/home-loans/information/illawarra-credit-union/Fixed-Home-Loan/5169" data-ldtx_html="Illawarra Credit Union " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="1">Illawarra Credit Union
  • 2 year fixed rate: 3.64% (Comparison rate 4.82%) - <a href="https://mozo.com.au/home-loans/information/newcastle-permanent/Fixed-Rate-Home-Loan/3545" data-ldtx_html="Newcastle Permanent " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="1" data-ldtx_trust="1" data-ldtx_power="1">Newcastle Permanent
  • 3 year fixed rate: 3.69% (Comparison rate 4.00%) - <a href="https://mozo.com.au/home-loans/information/ubank/UHomeLoan-Fixed/3792" data-ldtx_html="UBank " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="1" data-ldtx_trust="1" data-ldtx_power="1">UBank
  • 4 year fixed rate: 3.99% - <a href="https://mozo.com.au/home-loans/information/greater-bank/Ultimate-Home-Loan-Fixed,-Package/3796" data-ldtx_html="Greater Bank " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="1">Greater Bank (Comparison rate 4.49%), Teachers Mutual Bank (Comparison rate 4.85%), UniBank (Comparison rate 4.85%)
  • 5 year fixed rate: 3.99% - <a href="https://mozo.com.au/home-loans/information/greater-bank/Ultimate-Home-Loan-Fixed,-Package/3796" data-ldtx_html="Greater Bank " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="1">Greater Bank (Comparison rate 4.48%), Teachers Mutual Bank (Comparison rate 4.77%), UniBank (Comparison rate 4.77%)

You can find all the other great home loan offers available in our <a href="https://mozo.com.au/home-loans" data-ldtx_html="home loan comparison " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="12" data-ldtx_trust="3" data-ldtx_power="4">home loan comparison table.

Savings kept on ice for now

The past month has seen interest rates on savings take a major nosedive, and as the Reserve Bank opts to keep the official cash rate at a record low, savers will need to be on the lookout for great deals if they want to maximise the potential of their rainy day fund.

Lenders took on average around 16 days to pass on last month’s rate cut to home loan borrowers - and just 11 to pass it on to those building up their saving account balance. So while continuing low interest rates won’t be news to savvy savers, luckily, there are still some great savings account deals to be found.

Best savings accounts

ProductInterest rateSpecial conditions
Citibank <a href="https://mozo.com.au/savings-accounts/information/citibank/Online-Saver/3995" data-ldtx_html="Online Saver " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="0">Online Saver3.40%Introductory rate for the first 4 months
ME <a href="https://mozo.com.au/savings-accounts/information/me/Online-Savings-Account/3925" data-ldtx_html="Online Savings Account" class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="2" data-ldtx_trust="1" data-ldtx_power="2">Online Savings Account3.35%Ongoing bonus rate if you make a weekly Tap & Go purchase with the debit card attached to your ME Everyday Transaction Account
Bankwest <a href="https://mozo.com.au/savings-accounts/information/bankwest/TeleNet-Saver/3952" data-ldtx_html="TeleNet Saver " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="2">TeleNet Saver3.25%Introductory rate for the first 4 months
RaboDirect <a href="https://mozo.com.au/savings-accounts/information/rabodirect/High-Interest-Savings-Account/3924" data-ldtx_html="High Interest Savings Account " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="1">High Interest Savings Account3.25%Introductory rate for the first 4 months
P&N Bank <a href="https://mozo.com.au/savings-accounts/information/p-n-bank/Hi-Saver/4003" data-ldtx_html="Hi Saver " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="2">Hi Saver3.20%Introductory rate for the first 4 months

To find more great places to park your stash, check out our <a href="https://mozo.com.au/savings-accounts" data-ldtx_html="saving accounts comparison " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="12" data-ldtx_trust="3" data-ldtx_power="4">saving accounts comparison table, and to keep up to date with the world of finance, don’t forget to subscribe to our monthly newsletter, the Mozo Banking Roundup.

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 473 home loans.
Last updated 18 June 2024 Important disclosures and comparison rate warning*
  • 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.

  • 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.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • 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.

  • The Better Home Loan Special Offer

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

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • 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.

  • 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.

  • 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.

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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.

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.