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 - rates updated daily
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
Smart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- 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 Smart Booster Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 2 years2.56% p.a.Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
Basic Home Loan
Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.
- interest rate
- 2.09% p.a.
fixed 2 years
- comparison rate
- 2.56% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% p.a.Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.
Celebrate Variable Home Loan
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% 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
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- 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 Celebrate Variable Home Loan
UHomeLoan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- interest rate
- 1.75% p.a.
fixed 3 years
- comparison rate
- 2.22% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 31 March 2020. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)
LVR<90%, over $150k
interest rate
comparison rate
Initial monthly repayment
1.69% p.a.
fixed 1 year3.49% p.a.Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.
Discount Great Rate Home Loan
Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.
- interest rate
- 1.69% p.a.
fixed 1 year
- comparison rate
- 3.49% p.a.
- Upfront fees
- $180
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - fee applies
- Redraw facility
- yes
- Offset account
- no
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $150,000
- 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 Discount Great Rate Home Loan
^See information about the Mozo Experts Choice Home Loans Awards
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