RBA interest rates remain on hold at 1.50% for Spring

The Reserve Bank has left interest rates on hold at 1.50% again this month, a move anticipated by the vast majority of analysts.

The official cash rate has been at a record low since August last year, and looks set to stay there for some time. The combination of stagnant wage growth and high household debt in Australia is still a concern for policymakers, and the cash rate is likely to remain steady until the imbalance is well on its way to being resolved.

In his statement, Lowe said that low wage growth “is likely to continue for a while yet, although stronger conditions in the labour market should see some lift in wages growth over time. Inflation also remains low and is expected to pick up gradually as the economy strengthens.

Though the next move from the RBA is forecast to be an increase, experts aren’t expecting it to happen any time soon. Mozo Data Manager Peter Marshall said it could be another 8-12 months before the Reserve Bank makes any change.

Time to spring clean your home loan

Though the cash rate has been at a record low since last August, that doesn’t mean home loan rates are too. Competition is heating up in the interest rates war, as lenders hike some rates and cut others.

In particular, battle lines have been drawn between interest-only and principal and interest borrowing, with the latter benefiting from rate cuts, while the former has been hammered with rate rises.

With all the shifts in the market, now is a great time to reevaluate your mortgage, and make sure you’re still getting the best rate around.

Best variable rate home loan offers

Check out other top variable rate home loans in our comparison table.

Best fixed rate home loan offers

Find other top fixed rate home loan offers in our comparison table.

Savers still feeling the squeeze

More bad news for savers, as rates on both term deposits and savings accounts continue to drop. Term deposits in particular are under fire, with this month seeing the most rate cuts and the least increases all year. The top rates for many terms are now lower than they might have been a month ago.

But it’s not all bad, and for those who know where to look, there are still some products offering a decent return on your savings.

Best savings accounts

Check out our savings account comparison table to find other great options.

Best term deposits

Check out other great term deposit options with our term deposit search tool.

Top home loans - rates updated daily

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  • Basic Home Loan

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

    interest rate
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    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% p.a.

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  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

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    Initial monthly repayment
    2.19% p.a. variable
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    UHomeLoan

    Owner Occupier, Principal & Interest

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    1.75% p.a.
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    2.22% p.a.

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    3.49% p.a.

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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, loan amount and term entered. 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.

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