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- FreedomLend Variable Home Loan - 3.54% (comparison rate: 3.55%)
- Homestar Variable Rate Loan - 3.54% (comparison rate: 3.59%)
- Loans.com.au Essentials Variable 80 - 3.64% (comparison rate: 3.66%)
Check out other top variable rate home loans in our comparison table.
Best fixed rate home loan offers- 1 year - 3.49% - Greater Bank (comparison rate: 4.47%)
- 2 year - 3.64% - Newcastle Permanent (comparison rate: 4.79%)
- 3 year - 3.69% - Auswide (comparison rate: 4.87%), Newcastle Permanent (comparison rate: 4.69%)
- 4 year - 3.99% - Greater Bank (comparison rate: 4.48%)
- 5 year - 3.99% - Greater Bank (comparison rate: 4.47%)
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- RAMS Saver Account - 3.00% (with a minimum deposit of $200 and no withdrawals in the month)
- AMP Bett3r Save Account - 3.00% (with a minimum deposit of $2,000 per month into linked Bett3r Pay Account)
- ME Online Savings Account - 2.95% (when you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard)
- Australian Unity Active Saver - 2.90% (with a minimum deposit of $250 and no withdrawals in the month)
- UBank USaver - 2.87% (with a minimum deposit of at least $200 per month to linked transaction account)
Check out our savings account comparison table to find other great options.
Best term deposits- 1 year - 2.80% - Police Bank
- 2 year - 3.10% - Qudos Bank
- 3 year - 3.20% - Qudos Bank
- 4 year - 3.05% - People’s Choice Credit Union
- 5 year - 3.25% - RaboDirect
Check out other great term deposit options with our term deposit search tool.
Read last month's Reserve Bank interest rates update.
Top home loans - rates updated daily
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
Smart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 2 years2.56% 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.
Basic Home Loan
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.
- interest rate
- 2.09% p.a.
fixed 2 years
- comparison rate
- 2.56% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% 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.
Celebrate Variable Home Loan
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.
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
UHomeLoan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
$0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- interest rate
- 1.75% p.a.
fixed 3 years
- comparison rate
- 2.22% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 31 March 2020. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Discount Great Rate Home Loan (Fixed, Owner Occupier, Principal & Interest)
LVR<90%, over $150k
interest rate
comparison rate
Initial monthly repayment
1.69% p.a.
fixed 1 year3.49% p.a.Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.
Discount Great Rate Home Loan
Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2020.
- interest rate
- 1.69% p.a.
fixed 1 year
- comparison rate
- 3.49% p.a.
- Upfront fees
- $180
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - fee applies
- Redraw facility
- yes
- Offset account
- no
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Discount Great Rate Home Loan
^See information about the Mozo Experts Choice Home Loans Awards
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