RBA holds interest rates steady at 1.50% for spring

By Mozo Editorial · · 3 min read
Fact Checked
Advertiser disclosure

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 23 October 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

Promoted

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • 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.

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.59 % p.a.
    Fixed 5 years
    Comparison rate
    6.27 % p.a.
    Initial monthly repayment
    $2,867

    Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.

  • 2-Year Discounted - Simple Home Loan Variable

    • Owner-Occupied
    • Principal and Interest
    • LVR<60%
    Interest rate
    5.54 % p.a.
    Variable for 24 months and then 5.99% p.a.
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,988
    Go to site

    Enjoy a low variable rate with no application, ongoing or monthly fees to pay. Access your money via internet banking at any time with free redraws. Make additional repayments at any time. Available for owner occupied, investment and interest only repayments.

  • Variable Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.98 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,991
    Go to site

    Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • 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.

  • Discounted Home Value Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,995

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.

  • Simple Home Loan Variable

    • Owner-Occupied
    • Principal and Interest
    • LVR<60%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Enjoy a low variable rate with no application, ongoing or monthly fees to pay. Access your money via internet banking at any time with free redraws. Make additional repayments at any time. Available for owner occupied, investment and interest only repayments.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.89 % p.a.
    Initial monthly repayment
    $2,995

    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.

  • 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.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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Need help with your Home Loan?

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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.