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- Low rates here to stay as RBA holds cash rate
Low rates here to stay as RBA holds cash rate
The RBA has left the cash rate on hold at 0.75 per cent today with Governor Philip Lowe confirming low rates are here to stay.
Competition in the home loan market has continued to heat up. There are now over 30 lenders offering variable mortgage rates starting with a “2”.
Lowest advertised rates on RateCity:
Variable rates
| Lender | Advertised rate | Comparison rate |
| Reduce Home Loans | 2.69% | 2.71% |
| Well Home Loans | 2.72% | 2.75% |
| Homestar Finance | 2.74% | 2.77% |
2-year fixed rates
| Lender | Advertised rate | Comparison rate |
| Goulburn Murray Credit Union | 2.50% | 3.91% |
| Well Home Loans | 2.68% | 2.75% |
| Freedom Lend | 2.69% | 3.46% |
3-year fixed rates
| Lender | Advertised rate | Comparison rate |
| Well Home Loans | 2.68% | 2.74% |
| UBank | 2.69% | 3.19% |
| Freedom Lend | 2.69% | 3.40% |
5-year fixed rates
| Lender | Advertised rate | Comparison rate |
| Bank of Melbourne | 2.84% | 3.58% |
| St. George Bank | 2.84% | 3.59% |
| HSBC | 2.85% | 3.49% |
Source: RateCity.com.au
Notes: Rates are for owner occupiers paying principal and interest. LVR requirements may apply. comparison rates are typically higher for fixed rate loans.
RateCity.com.au research director Sally Tindall said: “The RBA is adopting a wait-and-see approach. While inflation and employment are tracking in the right direction, the Board needs time to assess the impact of the unfolding coronavirus and bushfire crises on the economy.”
“If the RBA does cut the cash rate again, we could see variable rates drop to below 2.50 per cent, potentially lower if lenders get into a rate war,” she said.
Disclaimer
This article is over two years old, last updated on February 4, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product database updated 16 Nov, 2024
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