RBA holds interest rates steady at 1.75% amidst global uncertainty

By Kelly Emmerton · · 3 min read
Fact Checked
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With global markets unsettled in the wake of Brexit and the Federal Election shaking up the domestic scene, the Reserve Bank of Australia has opted to keep interest rates on hold for now, at 1.75%.

The decision comes as no surprise, with 25 economists interviewed by Bloomberg unanimously predicting that this month’s RBA announcement would hold rates steady. However, most experts, with the notable exception of NAB, have forecast a rate cut for August.

In a statement, outgoing Governor Glenn Stevens said that, “In Australia, recent data suggest overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend."

He added that "Financial institutions are in a position to lend and credit growth has been moderate. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this."

Whether or not an August interest rate drop actually happens may come down largely to both the new global market conditions as regulators navigate Brexit developments, and the June quarter consumer price inflation (CPI) report which will be released on July 27.

What does it mean for your home loan?

During the month we’ve seen the lingering effect of the last RBA rate cut on home loan interest rates, with further cuts - particularly on fixed rate home loans - trickling through from lenders. So for any home buyers considering locking in a low rate, now may be a good time to make a move - unless you’re betting on another RBA rate cut in August.

Although already low home loan rates are looking even sweeter, and seem unlikely to rise again in the next month or two, it’s not time for borrowers to become complacent. Savvy Aussies should still keep one eye on the market and stay up-to-date on the best home loan deals.

Best fixed rate home loan offers

  • 1 year fixed rate: <a href="https://mozo.com.au/home-loans/information/illawarra-credit-union" 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 - 3.65% (comparison rate 4.10%)
  • 2 year fixed rate: 3.74% -  <a href="https://mozo.com.au/home-loans/information/suncorp" data-ldtx_html="Suncorp " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="2" data-ldtx_trust="1" data-ldtx_power="2">Suncorp (comparison rate 4.45%), <a href="https://mozo.com.au/home-loans/information/newcastle-permanent" 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 (comparison rate 4.84%)
  • 3 year fixed rate: loans.com.au - 3.67% (comparison rate 3.88%)
  • 4 year fixed rate BCU - 3.80% (comparison rate 4.38%)
  • 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%)

Best variable rate home loan offers

ProductVariable rate
FreedomLend <a href="https://mozo.com.au/home-loans/information/freedomlend" 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%
Newcastle Permanent <a href="https://mozo.com.au/home-loans/information/newcastle-permanent" 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 Package)3.74%
UBank <a href="https://mozo.com.au/home-loans/information/ubank" 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%

*All home loan rates based on owner occupiers with an LVR of 80% or higher

Check out other great home loan offers on the market over at 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.

And what about your savings?

Although the RBA has opted to keep interest rates on hold for now, with experts predicting another cut on the horizon savers will need to be on the lookout for all the best deals in order to secure a decent return on their cash stash.

Luckily, Mozo are here to help, and we’ve rounded up some of the best high interest savings accounts to park your rainy day fund in.

Best savings accounts

ProductInterest rateSpecial conditions
ME <a href="https://mozo.com.au/savings-accounts/information/me" 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%Make a weekly Tap & Go purchase with the debit card attached to your ME Everyday Transaction Account
CUA eSaver Reward3.15%Deposit $1,000 into a CUA transaction account in the month.
RAMS <a href="https://mozo.com.au/savings-accounts/information/rams" data-ldtx_html="Saver Account " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="3">Saver Account3.15%Minimum deposit of $200 and no withdrawals in the month.
UBank <a href="https://mozo.com.au/savings-accounts/information/ubank" data-ldtx_html="USaver with Ultra Transaction Account " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="2" data-ldtx_trust="1" data-ldtx_power="2">USaver with Ultra Transaction Account3.12%Minimum deposit of $200 into either account in the month.
Bank Australia <a href="https://mozo.com.au/savings-accounts/information/bank-australia" data-ldtx_html="Bonus Saver " class="ldtx-link-good ldtx-link-good-sameDomain-follow" data-ldtx_powertrust="0" data-ldtx_trust="0" data-ldtx_power="0">Bonus Saver3.00%Minimum deposit of $100 and no withdrawals in the month.

For more great savings options, visit 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. 

Read last month's Reserve Bank interest rates update.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 30 October 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • 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.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    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).

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    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).

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.59 % p.a.
    Fixed 5 years
    Comparison rate
    6.27 % p.a.
    Initial monthly repayment
    $2,867

    Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    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.

  • Variable Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.98 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,991
    Go to site

    Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • 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.

  • Discounted Home Value Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,995

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.22 % p.a.
    Initial monthly repayment
    $3,027
    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.

  • 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.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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Need help with your Home Loan?

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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.