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.
Home loan comparisons on Mozo
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Unloan Variable
- Owner Occupier
- LVR <80%
Go to site- Interest rate
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5.99
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Variable
- Comparison rate
-
5.90
%
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- Initial monthly repayment
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$2,995
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.
- interest rate
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5.99% p.a. (5.90% p.a.*)
- Fixed loan revert rate
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n/a
- Upfront fees
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$0
- Ongoing fees
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$0.00
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$0.00
- Package
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- Maximum loan to value ratio
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80.00%
- minimum borrowing amount
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$10,000
- maximum borrowing amount
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$10,000,000
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Variable
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Principal & Interest
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Owner Occupier
- Repayment options
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$2,995
- Extra repayments
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yes - free
- Redraw facility
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yes - free
- Minimum redraw amount
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- Offset account
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no
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Rate discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
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Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
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5.69
%
p.a.
Fixed 3 years
- Comparison rate
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6.28
%
p.a.
- Initial monthly repayment
-
$2,899
Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
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1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
-
6.34% p.a.
- Upfront fees
-
$799
- Ongoing fees
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$6.00 monthly
- Discharge Fee
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$350.00
- Package
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- Maximum loan to value ratio
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95.00%
- minimum borrowing amount
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$10,000
- maximum borrowing amount
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$5,000,000
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Fixed
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Principal & Interest
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Owner Occupier
- Repayment options
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$2,899
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
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yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
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Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
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$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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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.
- interest rate
-
1 year - 6.14% p.a. (7.13% p.a.*)
2 years - 5.74% p.a. (6.94% p.a.*)
3 years - 5.74% p.a. (6.81% p.a.*)
4 years - 5.89% p.a. (6.75% p.a.*)
5 years - 5.99% p.a. (6.69% p.a.*)
- Fixed loan revert rate
-
7.24% p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge Fee
-
$160.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
-
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,915
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Split account
-
yes
- Other restrictions
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-
- Other benefits
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No monthly fee after end of fixed rate term. Lock your fixed rate for 90 days for a fee of $750 per $1m in lending (or part thereof).
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$3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
Read reviews and learn more about ANZ home loans
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-
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
- Owner Occupier
- LVR <80%
Go to site- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
-
5.90
%
p.a.
- Initial monthly repayment
-
$2,995
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.
- interest rate
-
5.99% p.a. (5.90% p.a.*)
- 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
-
$2,995
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
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-
Read reviews and learn more about Unloan home loans
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Budget Home Loan
- LVR <80%
- Owner Occupier
- Principal & Interest
Go to site- Interest rate
-
6.04
%
p.a.
Variable
- Comparison rate
-
6.07
%
p.a.
- Initial monthly repayment
-
$3,011
Enjoy a discounted variable home loan from IMB. Get up to $4,000 cashback (T&Cs apply). Life-of-loan discount off IMB’s standard variable interest rate. Unrestricted additional repayments. Free Internet and Mobile Banking redraws (T&Cs apply). No monthly fees to pay. Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
6.04% p.a. (6.07% p.a.*)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$3,011
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
The $449 application fee is waived for <80% LVR Owner Occupier Principal and Interest loans.
- Special Offers
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$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.
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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.
- interest rate
-
6.14% p.a. (6.17% p.a.*)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge Fee
-
$250.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
$2,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$3,043
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$1.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
Everyday round up available, a feature that automatically rounds purchases made on INGs Orange Everyday transaction account to the nearest $1 or $5 and transfers the difference against your loan balance.
- Special Offers
-
-
Read reviews and learn more about ING home loans
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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.
- interest rate
-
6.18% p.a. (6.18% p.a.*)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$498
- Ongoing fees
-
$0.00
- Discharge Fee
-
$325.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$3,056
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
Optional extra - $10 per month
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about Aussie home loans
Interested in an Aussie home loan? Lendi specialists can help you refinance your home loan.
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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.