RBA holds interest rates steady at 1.75% amidst global uncertainty
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
Product | Variable 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 Loan | 3.73% |
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 Offer | 3.74% |
*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
Product | Interest rate | Special 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 Account | 3.35% | Make a weekly Tap & Go purchase with the debit card attached to your ME Everyday Transaction Account |
CUA eSaver Reward | 3.15% | 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 Account | 3.15% | 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 Account | 3.12% | 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 Saver | 3.00% | 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.
-
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- Low Cost Home Loan - 2025
Unloan Variable Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
- Interest rate
-
5.74
%
p.a.
Variable
- Comparison rate
-
5.65
%
p.a.
- Initial monthly repayment
-
$2,915
- RATE CUT NOW LIVE!
- The first home loan with an increasing discount (conditions apply)
- No application or banking fees
- interest rate
-
5.74% p.a. (5.65% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
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no
- Other restrictions
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-
- Other benefits
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Rate automatically discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
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Basic Home Loan
- Owner occupier
- Principal & Interest
- 40% min deposit
- Redraw available
- Interest rate
-
5.89
%
p.a.
Variable
- Comparison rate
-
5.91
%
p.a.
- Initial monthly repayment
-
$2,962
- No ongoing fees
- Free redraw from your loan using Macquarie Online
- No account management fees
- interest rate
-
5.89% p.a. (5.91% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge Fee
-
$400.00
- Package
-
-
- Maximum loan to value ratio
-
60.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
yes
- Other restrictions
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-
- Other benefits
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-
- Special Offers
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Variable Home Loan 90
- Owner occupier
- Principal & Interest
- 10% min deposit
- Offset available
- Redraw available
- Interest rate
-
5.79
%
p.a.
Variable
- Comparison rate
-
5.83
%
p.a.
- Initial monthly repayment
-
$2,931
- RATE CUT NOW LIVE!
- No monthly or ongoing fees
- Option to add an offset for 0.10% p.a.
- interest rate
-
5.79% p.a. (5.83% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$530
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$2,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
yes
- Split account
-
yes
- Other restrictions
-
Offset sub-account available for additional +0.10%. $300 discharge fee and $250 discharge documentation fee applicable if loan doesnt go to full term.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about loans.com.au home loans
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Switch & Save One Year Fixed Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- Offset available
- Redraw available
- Interest rate
-
5.54
%
p.a.
Fixed 1 year
- Comparison rate
-
5.74
%
p.a.
- Initial monthly repayment
-
$2,852
- No penalty for early payout
- No penalty for making additional payments
- 100% Savings Offset facility
- interest rate
-
1 year - 5.54% p.a. (5.74% p.a. comparison rate)
- Fixed loan revert rate
-
5.64% p.a.
- Upfront fees
-
$1,555
- Ongoing fees
-
$0.00
- Discharge Fee
-
$300.00
- Package
-
-
- Maximum loan to value ratio
-
-
- minimum borrowing amount
-
$100,000
- maximum borrowing amount
-
$900,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$100.00
- Offset account
-
yes
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about Transport Mutual Credit Union home loans
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Basic Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 30% min deposit
- Redraw available
- Interest rate
-
5.55
%
p.a.
Fixed 2 years
- Comparison rate
-
5.85
%
p.a.
- Initial monthly repayment
-
$2,855
- No ongoing fees
- Free redraw from your loan using Macquarie Online.
- No application or account management fees
- interest rate
-
1 year - 5.69% p.a. (5.89% p.a. comparison rate)
2 years - 5.55% p.a. (5.85% p.a. comparison rate)
3 years - 5.55% p.a. (5.82% p.a. comparison rate)
4 years - 5.69% p.a. (5.84% p.a. comparison rate)
5 years - 5.69% p.a. (5.83% p.a. comparison rate)
- Fixed loan revert rate
-
5.89% p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge Fee
-
$400.00
- Package
-
-
- Maximum loan to value ratio
-
70.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Monthly
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about Macquarie home loans
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Offset Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 30% min deposit
- Offset available
- Redraw available
- Interest rate
-
5.55
%
p.a.
Fixed 2 years
- Comparison rate
-
6.08
%
p.a.
- Initial monthly repayment
-
$2,855
- Open up to 10 offset accounts
- No fee to redraw or split into multiple loan accounts
- Variable and fixed rates available
- interest rate
-
1 year - 5.69% p.a. (6.12% p.a. comparison rate)
2 years - 5.55% p.a. (6.08% p.a. comparison rate)
3 years - 5.55% p.a. (6.05% p.a. comparison rate)
4 years - 5.69% p.a. (6.07% p.a. comparison rate)
5 years - 5.69% p.a. (6.06% p.a. comparison rate)
- Fixed loan revert rate
-
5.89% p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$248.00 yearly
- Discharge Fee
-
$400.00
- Package
-
Package
- Maximum loan to value ratio
-
70.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Monthly
- Extra repayments
-
yes - up to $10,000 p.a.
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
yes
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about Macquarie home loans
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Switch and Save Home Loan
- Owner occupier
- Principal & Interest
- Offset available
- Redraw available
- Interest rate
-
5.64
%
p.a.
Variable
- Comparison rate
-
5.75
%
p.a.
- Initial monthly repayment
-
$2,883
- No penalty for early payout
- No penalty for making additional payments
- 100% Savings Offset facility
- interest rate
-
5.64% p.a. (5.75% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$1,555
- Ongoing fees
-
$0.00
- Discharge Fee
-
$300.00
- Package
-
-
- Maximum loan to value ratio
-
-
- minimum borrowing amount
-
$100,000
- maximum borrowing amount
-
$900,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$100.00
- Offset account
-
yes
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about Transport Mutual Credit Union home loans
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Fixed Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 5% min deposit
- Redraw available
- Cashback
- Interest rate
-
5.69
%
p.a.
Fixed 2 years
- Comparison rate
-
6.00
%
p.a.
- Initial monthly repayment
-
$2,899
- Get up to $4,000 cashback (T&Cs apply)
- Up to 12 months repayments in advance without penalties
- Split loan available
- interest rate
-
1 year - 6.19% p.a. (6.08% p.a. comparison rate)
2 years - 5.69% p.a. (6.00% p.a. comparison rate)
3 years - 5.69% p.a. (5.98% p.a. comparison rate)
4 years - 5.89% p.a. (6.03% p.a. comparison rate)
5 years - 5.89% p.a. (6.03% p.a. comparison rate)
- Fixed loan revert rate
-
5.99% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
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Mozo experts choice awards won:
- Low Cost Home Loan - 2025
Unloan Variable Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
- Interest rate
-
5.74
%
p.a.
Variable
- Comparison rate
-
5.65
%
p.a.
- Initial monthly repayment
-
$2,915
- RATE CUT NOW LIVE!
- The first home loan with an increasing discount (conditions apply)
- No application or banking fees
- interest rate
-
5.74% p.a. (5.65% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate automatically discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
-
-
Read reviews and learn more about Unloan home loans
Go to site -
Mozo experts choice awards won:
- Low Cost Home Loan - 2025
Simple Home Loan Variable
- Owner occupier
- Principal & Interest
- 40% min deposit
- Redraw available
- Interest rate
-
5.74
%
p.a.
Variable
- Comparison rate
-
5.74
%
p.a.
- Initial monthly repayment
-
$2,915
- No application, ongoing or monthly fees
- Make additional repayments at any time
- Access your money via internet banking at any time
- interest rate
-
5.74% p.a. (5.74% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge Fee
-
$175.00
- Package
-
-
- Maximum loan to value ratio
-
60.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
$3,500,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Valuation and legal fees covered up to $1,000. Anything above this charged at cost.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about First Option Bank home loans
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Your selected reserve bank interest rates
* 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.