RBA interest rates steady at 1.50% for EOFY
The Reserve Bank has opted to keep the official cash rate steady at 1.50% for the ninth month in a row as the 2016/17 financial year wraps up, and economists are expecting it to stay there for a while.
Household debt has remained high while wages are stagnant around the country, and the RBA seems reluctant to makes changes in the absence of a major economic shift. The booming property market is one reason why - it’s likely the Reserve Bank will want to see a solid cooling in the market before making any significant move on interest rates.
In his statement, RBA Governor Philip Lowe said, "The outlook continues to be supported by the low level of interest rates. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment."
Earlier in the year, a rate hike had seemed imminent, but experts have recently revised their opinion, with most expecting the 1.50% cash rate to last well into 2018, and some tipping the next move to be yet another decrease.
Interest-only home loans on the rise
Continuing efforts to clamp down on interest-only and investment lending by banks has meant a spate of home loan rate hikes in those areas this month. We also saw a number of lenders reduce the maximum LVR on interest-only loans.
One other notable trend is that lenders have largely stopped hiking fixed rate loans and some have even began decreasing rates. According to Mozo Data Manager Peter Marshall, this is one indicator that the banks aren’t expecting a rate hike too soon.
So there are still a few good offers around for savvy borrowers. Here’s a few to get you started:
Best fixed rate home loan offers- 1 year - 3.59% - Greater Bank (comparison rate: 4.48%)
- 2 year - 3.64% - Newcastle Permanent (comparison rate: 4.83%)
- 3 year - 3.59% - Easy Street (comparison rate: 4.01%)
- 4 year - 3.99% - Newcastle Permanent (comparison rate: 4.72%)
- 5 year - 3.99% - Newcastle Permanent (comparison rate: 4.65%), Suncorp (comparison rate: 3.82%)
Best variable rate home loan offers
- Homestar Owner Occupier Loan - 3.49% (comparison rate: 3.53%)
- FreedomLend Variable Home Loan - 3.54% (comparison rate: 3.55%)
- loans.com.au Essentials Variable - 3.64% (comparison rate: 3.66%)
- 3.69% - Bank of Sydney Expect More PAYG Home Loan (comparison rate: 4.10%)
Savings still not in a great place
There’s some bad news for savers as we wrap up this financial year - or should we say some more bad news. Savings rates have been on a downward slide for a while now, and this month saw further rate cuts to a couple of savings account offers.
But the real story is in term deposits, which have held up reasonably well this year, until now. Rates have been cut by a number of providers over the last month. But the good news is, some providers have actually increased rates on key products. Here’s where to find the best offers:
Best term deposits
- 1 year - 3.00% - Teachers Mutual Bank, Unibank
- 2 year - 3.20% - Maitland Mutual Building Society
- 3 year - 3.40% - Maitland Mutual Building Society
- 4 year - 3.20% - Greater Bank
- 5 year - 3.30% - Greater Bank
Find other term deposit options with our term deposit search tool.
Best savings accounts
- ME Online Savings Account - 3.05% (when you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard)
- AMP Bett3r Save Account -3.00% (with a minimum deposit of $2,000 per month into linked Bett3r Pay Account)
- Australian Unity Active Saver - 3.00% (with a minimum deposit of $250 and no withdrawals in the month)
- ING DIRECT Savings Maximiser - 3.00% (when you also have an Orange Everyday and deposit $1,000 each month)
- Newcastle Permanent Smart Saver Account - 3.00% (when you increase the account balance by $150 (excluding interest) and make no more than two withdrawals in the month)
- RAMS Saver Account - 3.00% (with a minimum deposit of $200 and no withdrawals in the month)
Check out our savings account comparison table to see the rest of the deals in the market.
Read last month's Reserve Bank interest rates update.
Top home loans - last updated 20 April 2024
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Featured Product
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
Owner Occupier, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.99% p.a. variable5.90% p.a.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.
CompareCompareUnloan Variable
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. variable
- comparison rate
- 5.90% p.a.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% 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
- 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
- Special Offers
- -
Read our Mozo Review to learn more about the Unloan Variable
-
Mozo experts choice awards won:
- Exceptional Value Home Lender - 2024
Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment6.01% p.a. variable6.14% p.a.Get fast 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.
CompareCompareExpress Home Loan
Get fast 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.
- interest rate
- 6.01% p.a. variable
- comparison rate
- 6.14% p.a.
- interest rate
- 6.01% p.a. variable
- comparison rate
- 6.14% p.a.
- Upfront fees
- $134
- Ongoing fees
- $10.00 monthly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $5,000
- maximum borrowing amount
- $3,000,000
- 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 Express Home Loan
-
Flex Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment5.99% p.a.
fixed 3 years6.37% p.a.Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
CompareCompareFlex Home Loan
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- interest rate
- 5.99% p.a.
fixed 3 years
- comparison rate
- 6.37% p.a.
- interest rate
- 5.99% p.a.
fixed 3 years
- comparison rate
- 6.37% p.a.
- Upfront fees
- $250
- Ongoing fees
- $250.00 yearly
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Flex Home Loan
-
Discounted Home Value Loan
Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment6.09% p.a. variable6.09% p.a.Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
CompareCompareDiscounted Home Value Loan
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
- interest rate
- 6.09% p.a. variable
- comparison rate
- 6.09% p.a.
- interest rate
- 6.09% p.a. variable
- comparison rate
- 6.09% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $15,000,000
- 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 Discounted Home Value Loan
-
Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment6.14% p.a. variable6.16% p.a.Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
CompareCompareNeat Home Loan
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.16% p.a.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.16% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
- maximum borrowing amount
- $5,000,000
- 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 Neat Home Loan
Your selected reserve bank interest rates
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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.
^See information about the Mozo Experts Choice Home Loan Awards
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