Three in a row? Not today says RBA as rates stay at 1.00% in August

Hold! That was the verdict from the Reserve Bank (RBA) Board which took the decision to maintain the official cash rate at 1.00% at its August meeting in Sydney this afternoon. 

The move comes as a respite after two consecutive 0.25% rate cuts at the RBA’s June and July meetings and means that interest rates will remain at record low levels for at least another month. 

RELATED: Back to back cuts: The RBA drops official interest rates to 1.00%

Despite the hold, speculation remains rife that the RBA will be forced to drop the official cash rate for a third time in 2019 in the coming months. 

“Today’s move from the Board was not unexpected, especially given last week’s CPI figure of 1.60% which proved higher than expected. Next month may be a different matter though, as I think there’s a high chance of a cut in either September or October,” said Mozo Banking Expert, Peter Marshall. 

“The RBA is treading a fine line between cutting rates to support the economy and cutting rates and panicking people. There are also only a couple of shots left in the rate cut chamber - that’s why they want to be seen as being measured about what they’re doing and not rushing unless there’s a very good reason to rush.”

Cuts trickle down to borrowers as home loan rates dive below 3.00%

Now that we have a chance to breathe following today’s rate hold, what’s actually happened to home loan rates since the RBA made their last cut on July 2? 

Perhaps unsurprisingly, fewer home loan lenders passed on the full 0.25% RBA cut this time around. As a result, only eight providers in the Mozo database passed on the full 0.50% cut to their variable rate customers over the two months. 

The recent cuts do mean that variable rate borrowers can now take advantage of interest rates as low as 3.00% and below. Here are some of the lowest variable rate offers currently^ in the Mozo database.

Variable rate home loans (owner occupiers making principal and interest repayments)

LenderHome LoanInterest Rate
Reduce Home LoansLow Rider2.89% (2.91% comparison rate*)
Well Home LoansWell Balanced2.97% (2.99% comparison rate*)
HomestarVariable Rate Loan2.99% (3.02% comparison rate*)
loans.com.auSmart Home Loan3.03% (3.05% comparison rate*)
FreedomlendVariable Home Loan3.04% (3.04% comparison rate*)

Some of the major action has come in the fixed rate home loan market though, with 0.50% reductions to the top rates on offer for one and five year terms in the Mozo database proving the highlights among a number of fixed rate changes. 

Similarly to variable rates, recent changes mean borrowers can now take advantage of fixed rates offers below 3.00% for a number of terms. 

According to Marshall, the recent fixed home loan rate cut action could be a signal of the rate environment we’re entering. 

“With rates dropping sharply and flattening out across fixed rate terms for home loans, it shows that lenders don’t think things are going to change anytime soon. Rates could well be  depressed for an extended period to come,” he said. 

Check out some of the lowest fixed rate offers currently^ in the Mozo database.

Fixed rate home loans (owner occupiers making principal and interest repayments)

LenderTermHome LoanInterest Rate
Greater Bank1 YearGreat Rate Home Loan2.79% (3.95% comparison rate*)
Mortgage House2 YearAdvantage Home Loan Special2.96% (3.33% comparison rate*)
Mortgage House3 YearAdvantage Home Loan Special2.96% (3.31% comparison rate*)
Greater Bank4 YearGreat Rate Home Loan3.39% (3.84% comparison rate*)
UBank5 YearUHomeLoan (Fixed)3.19% (3.44% comparison rate*)

Ready to compare the latest rates across a range of banking products? Head over to the Mozo home loan, savings account or term deposit comparison tables for an even bigger range of offers. 

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans.
Last updated 13 June 2024 Important disclosures and comparison rate warning*
  • 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.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • 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.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • 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.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    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.

image of houses

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^As of 6 August, 2019. 

*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 the amount and term you entered.

* 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.