September RBA Decision: No surprises! RBA holds cash rate at 4.75%
The reserve bank has kept the cash rate unchanged at 4.75% at its board meeting today.
The ongoing uncertainty and volatility of global financial markets, a softening housing market and cautious household behaviour were cited as reasons for the Reserve Bank Board to keep rates as they are. The statement by Gorvenor Glenn Stevens however stressed that it has concern over the medium term outlook to contain inflation and would continue to assess carefully the evolving outlook for growth and inflation in the coming months.
Fixed or Variable?
There is a lot of speculation about what will happen with interest rates in the coming months and for homeowners this means it is a good time to look around and compare fixed rates with variable interest rates.
Fixed interest rates are great if you own an investment property or if you want the security of knowing what your monthly expenses will be.
A quick check on Mozo shows that right now there are a number of great 3 year fixed rate home loans that are extremely competitive against the same bank's variable rates. For instance, ME Bank's standard 3 year fixed rate of 6.35% against its standard variable rate of 7.69%. Greater Building Society also has a lower 3 year fixed rate of 6.59% against its 6.94% variable rate. Compare all fixed rate home loans now!
If you are more flexible with your monthly budget then it pays to shop around for a competitive variable rate loan. Standard variable interest rates of the Big 4 banks range from 7.67% to 7.86%. Mozo's database shows that many lenders have standard variable rates lower including eMoney (6.68%), loans.com.au (6.69%), UBank (6.79%) to name a few. Compare all variable rate home loans.
Why not compare your home loan with the market with the Mozo home loan health check calculator. It only takes a minute and you will get a personalised report which will show you how much you will save in interest and fees by switching loans.
Or if you want to compare a fixed loan with a variable loan, try our Home Loan Comparison calculator to see which loan with save you the most.
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