RBA leaves rates unchanged for September

MEDIA RELEASE 3 September 2019

Four-year fixed rates go under 3%

The Reserve Bank of Australia board has left the official overnight cash rate (OCR) unchanged at 1.00 per cent.

Retail home loan rates are now as low as 2.79 per cent pa (see below) according to InfoChoice’s database of 145 banks, credit unions and other lenders in Australia.

Home buyers can now lock in sub-three per cent mortgage repayments until 2023.

There are now 22 three-year fixed rate home loan products for owner-occupiers with advertised rates under three per cent listed by InfoChoice.com.au. The lowest comparison rate for a three-year fixed rate mortgage is 3.04 per cent pa.

There are now four 4-year fixed rate home loan products for owner-occupiers with advertised rates under three per cent listed by InfoChoice. The lowest comparison rate for a four-year fixed rate mortgage is 3.76 per cent pa.

“Homebuyers can lock in a loan rate under three per cent for up to four years, until mid-2023,” said Vadim Taube, CEO of leading Australian financial comparison site, InfoChoice.com.au.

“However, search trends on our site indicate that most people are looking for variable rate home loans, so they are heeding the messages from the RBA that low rates are here to stay for an extended period.

“For refinancers, the low rates now on offer represent a big opportunity to move to a cheaper loan, or extend their loan amount while rates are low.”

The lowest advertised home loan rates currently listed by InfoChoice.com.au are:

Variable rate:* 2.89 per cent p.a. (comparison rate 2.91 per cent p.a.**) from Reduce Home Loan’s Low Rider Variable loan.

Fixed rate:* 2.79 per cent p.a. (comparison rate 3.95 per cent p.a.) from Greater Bank’s 12 month Fixed Home Loan.

Savings rates remain under pressure but good deals can still be found on at-call savings accounts and term deposits.

“Savers need to be finding accounts with high bonus maximum rates over 1.6 per cent to stay ahead of inflation,” said Vadim Taube, Chief Executive of InfoChoice.

“Be aware that many savings accounts have high headline rates that only last for a few months.”

“Term deposit rates continue to slide,” said Vadim Taube

“Now the highest 12-month Term Deposit rates listed by InfoChoice are from smaller institutions with the top rate now 2.20 per cent pa, down 0.30 per cent from last month,” said Vadim Taube from InfoChoice.

Term Deposits – 1 Year $25,000

Institution Title Product Title 1 Year Paid Annually
Goldfields Money Term Deposit 2.20
MyLife MyFinance Term Deposit 2.15
Defence Bank Term Deposits 2.05
Maleny Credit Union Maleny Credit Union Term Deposit 2.05
Police Bank I12 – Term Deposit 2.00

The highest savings account rates currently listed by InfoChoice are:

At-call savings accounts:*** 2.50 per cent p.a. max bonus rate (base rate 0.50 per cent) from UP Saver. 5 or more card purchases per month must be made from your Everyday Account. No monthly deposits required.

For more information on rates, data and commentary, please contact:

Jason Bryce, Media Manager on 0428 777 727 jason.bryce@infochoice.com.au

For more commentary, please contact:

Vadim Taube, Chief Executive

Keep up to date with the latest RBA rates outlook at InfoChoice.

* InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

** Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply 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 costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan

***Excludes accounts with introductory honeymoon maximum bonus rates, notice saver accounts and accounts that are not generally available to all Australian residents

InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on credit cards, home loans, savings accounts, term deposits, personal loans and car loans for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today.

At InfoChoice, we strive to be:

• Comprehensive. We compare more than 3500 individual products from 145 providers within Australia to offer you the best value.

• Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.

Sincerely,

Jason Bryce

Advertisement