RBA holds interest rates steady at 1.50% for spring

By Mozo Editorial · · 3 min read
Fact Checked
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The Reserve Bank announced at its September board meeting that interest rates would remain on hold at a low of 1.50%.

Although this month is a reprieve in the downward slide of the official cash rate, which has been hitting record lows recently, and in May 2016 dropped below 2.00% for the first time ever, experts are predicting another cut later in the year, with expectations that interest rates may reach as low as 1% next year.

In a statement, RBA Governor Glenn Stevens said “Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes." 

"These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.”

Stevens will step down as Governor on September 17 after 10 years leading the Reserve Bank board. His deputy, Philip Lowe, will take over the position.

A perfect time for home loan hopefuls?

With rates on hold at a low 1.50% for the coming month, it’s the perfect time for new homebuyers to pick up a low rate home loan offer.

Our database shows that 70 lenders passed on some or all of the 25 basis point cut from August, bringing the most competitive rates in the market to well under the 4% mark. We’ve rounded up the best offers below:

Best variable rate home loan offers

ProductVariable rateComparison rate
Reduce Home Loans Rate Buster Variable3.35%3.42%
Homestar Owner Occupier Loan3.44%3.49%
Reduce Home Loans Rate Buster Offset Variable3.44%3.51%
Homestar Variable Rate Loan3.48%3.53%

*All home loans rates based on owner occupiers with an LVR of 80%

Best fixed rate home loan offers

You can find all the other great home loan offers available in our home loan comparison table.

Savers are feeling the pinch

It’s been another rough month for savers, as heaps of lenders, including all four big banks, as well as other major players like Bankwest, ING Direct, UBank and ME dropped rates on their savings products by 25 basis points.

This is bad news for beleaguered savers, although there are still some providers offering a decent return, for those who know where to look. Take a look at some of the best options below:

Best savings accounts

ProductInterest rateSpecial conditions
Australian Unity Easy Saver3.20%Introductory rate for the first 4 months
RAMS Saver Account3.15%Ongoing bonus rate when you make no withdrawals and deposit at least $200 each month.
ME Online Savings Account3.10%Ongoing bonus rate if you make a weekly Tap & Go purchase with the debit card attached to your ME Everyday Transaction Account
Citibank Online Saver3.05%Introductory rate for the first 4 months
Bank Australia Bonus Saver3.00%Ongoing bonus rate when you make no withdrawals and deposit at least $100 each month.

Visit our savings hub to check out all the other great places to stash your cash and compare savings accounts side-by-side.

The real news for savers was in term deposits, where the major banks actually increased rates over the last month. Terms shorter than 1 year still suffered from rate drops, but for savers willing to lock their cash away for terms longer than a year, rate rises outweighed cuts across the board.

Best term deposits

TermProviderRate
3 monthsArab Bank3.10%
6 monthsME3.00%
7 monthsNewcastle Permanent,Maitland Mutual Building Society3.00%
1 yearGateway Credit Union3.11%
2 yearsANZ,People's Choice Credit Union3.20%

To see the other term deposits offering Aussies a chance to grow their savings stash, check out our term deposit comparison table.

Read last month's Reserve Bank interest rates update.

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 5 December 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • First Home Buyer Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • For first home buyers
    • Offset available
    • Redraw available
    Interest rate
    4.99 % p.a.
    Variable
    Comparison rate
    5.04 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • Competitive interest rate – 4.99% p.a. (comparison rate* 5.04% p.a.)
    • Offset account to reduce interest and save on repayments
    • No establishment or monthly fees, plus valuation fees waived up to $1,000 (limited time)

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.43 % p.a.
    Initial monthly repayment
    $2,712
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.20 % p.a.
    Initial monthly repayment
    $2,742
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
    5.42 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
Showing 6 results from 380 home loans. Use the filters to see more

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* 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.