No change (yet again!): RBA leaves official cash rate at 2.50%

At its September meeting today, the Reserve Bank of Australia Board left the official cash rate at a record low 2.50% for the 13th consecutive month and rates are likely to stay put for the remainder of the year.

Governor Glenn Stevens said in a statement that business conditions are gradually improving and there has been some recovery in household sentiment after a weaker period around mid year, suggesting moderate growth in the economy is occurring.

"Looking ahead, continued accommodative monetary policy should provide support to demand and help growth to strengthen over time. Inflation is expected to be consistent with the 2–3 per cent target over the next two years."

The stable economy, flat inflation and a rise in unemployment suggests no major alteration to the official cash rate in the coming months, however, experts predict a rate rise some time next year, as the expected transition away from mining led growth to other sectors proceeds.

Spring clean your savings

Spring is in the air, the flowers are in bloom...making it the perfect time to spring clean your savings and see your green grow.

While interest rates are looking a bit drab for savers, a few financial providers have recently lifted their rates, including RaboDirect with its 90 Day Notice Saver account which grew from 3.90% to 4.00%.

Over August the savings world welcomed two newcomers, the Bankwest Hero Saver account and the CUA eSaver Plus (replacing the eSaver account) both with a 4.00% interest rate, as long as you deposit at least $200 a month and make no withdrawals.

If your savings account has an interest rate sitting below the 4.00% mark it’s time to shift your saving up a gear by searching the savings accounts market here.

Find your home loan happiness

Fixed rates still remain competitive across the board with the lowest 1 year fixed rate sitting comfortably at 3.89% offered by Newcastle Permanent and the best 3 year at 4.59% from ME Bank and Newcastle Permanent Building Society.

On the variable rate side of the market, online lender loans.com.au still sits at the top with its Dream Home Loan Variable at 4.54% and first home buyers will be glad to hear their loan-to-value ratio has increased from 80% to 90%. Mortgage House also now offers a rate of 4.54%, but limited to those with a loan-to-value ratio of up to 60%.

Discover more great value home loans in Mozo’s buzzing home loan hub.

Top home loans - last updated February 27, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
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    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

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    2.09% p.a.
    fixed 2 years
    2.56% 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.

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    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

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    2.34% p.a. variable
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  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
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    Initial monthly repayment
    2.19% p.a. variable
    2.19% 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.^

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  • Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
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    Initial monthly repayment
    1.99% p.a.
    fixed 4 years
    3.45% p.a.

    Ability to split your loan between fixed and variable. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply

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