The RBA Announcements You Need to Know About

Rates and Fees verified correct on March 29th, 2017

The latest news and announcements from the RBA RBA Announcements

On the first Tuesday of every month except January, the board of the Reserve Bank of Australia (RBA) meets to discuss monetary policy and determine the official cash rate. After taking into account factors such as the strength of the economy, the strength of the Australian Dollar, the performance of the housing market and levels of consumer confidence, the board decides whether to raise interest rates, lower them or keep them at the same level.

A full rundown of the minutes of each board meeting can be found on the RBA website. These minutes detail the board’s discussion about global financial markets, international economic conditions, domestic economic conditions and the considerations for monetary policy. At the end of each meeting, a decision is reached on what to do with the official cash rate.

This decision is then announced to the rest of the country on that same Tuesday afternoon. Most famously, the rate announcement in November  coincides with  the Melbourne Cup.

What happens when the cash rate changes?

A change in the cash rate affects a range of financial products and services in different ways.

Home Loans

A rise in the official cash rate is typically unwelcome news for borrowers, with most banks quick to raise the interest rates they offer on their home loan packages. This  results in a larger amount of interest you will have to pay on the amount you borrowed. However, borrowers with fixed rate loans will be able to avoid the extra financial pressure of a rise in the cash rate until their fixed rate period ends.

If the cash rate is lowered by the RBA, however, holders of variable rate loans will be able to take advantage of a reduction in the amount of interest they have to pay towards their loan. On the flipside, those with fixed rate loans will not be able to take advantage of reduced interest charges.

Lower interest rates usually also result in more people entering the property market because buying a house is seen to be more affordable. This increased competition in the property market can drive housing prices up.

Compare current home loan offers

Rates last updated March 28th, 2017.

HSBC Home Value Loan - Resident Owner Occupier only

Application fee waived for Resident Owner Occupier only.

February 15th, 2017

State Custodians Line Of Credit Loan - LVR 80% to 90% (Owner Occupier)

Interest rate increased by 0.10%

February 27th, 2017

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)

Interest rate increases by 0.10%

February 27th, 2017

View latest updates

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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
HSBC Home Value Loan - Resident Owner Occupier only
Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.
3.75% 3.77% $0 $0 p.a. 90% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate package loan with flexible repayments options.
3.98% 4.97% $0 $395 p.a. 95% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.59% 4.42% $0 $375 p.a. 85% Go to site More info
State Custodians Standard Variable - LVR 80% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.69% 4.03% $0 $299 p.a. 80% Go to site More info
CUA Fresh Start Basic Variable Home Loan - Owner Occupier
A basic mortgage with flexible repayments options.
3.89% 3.94% $600 $0 p.a. 90% Go to site More info
Beyond Bank Low Rate Special Home Loan
A special low variable rate for Owner Occupier with 100% offset account and no application or ongoing fees.
3.83% 3.83% $0 $0 p.a. 70% Go to site More info
ME Flexible Home Loan With Member Package - LVR <=80% $400k up to $699,999 (Owner Occupier)
Enjoy a discount of a competitive interest rate and 100% offset account.
3.89% 4.30% $0 $395 p.a. 80% Go to site More info
State Custodians Standard Variable - LVR 90% (Owner Occupier)
A special rate for owner occupiers with free 100% offset account and no application fee.
3.79% 4.12% $0 $299 p.a. 90% Go to site More info
Switzer Home Loan
No upfront or ongoing fees and a competitive variable rate for owner occupiers.
3.89% 3.89% $0 $0 p.a. 90% Go to site More info
loans.com.au Essentials - Variable (Owner Occupier, P&I)
A low-interest rate loan suited for purchases and refinances with no application or ongoing fees.
3.59% 3.61% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.84% 4.22% $0 $395 p.a. 95% Go to site More info
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan - Up to 110% LVR
Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
3.89% 3.89% $0 $0 p.a. 110% Go to site More info
State Custodians Line Of Credit Loan - LVR 80% to 90% (Owner Occupier)
Borrow up to 90% property value and pay no application fee.
3.79% 4.12% $0 $299 p.a. 90% Go to site More info
loans.com.au Offset Variable - Up to 80% LVR (Owner Occupier P&I)
Take advantage a 100% offset account along with no annual or application fee.
3.67% 3.69% $0 $0 p.a. 80% Go to site More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
A competitive budget rate without any unwanted bells and whistles.
3.87% 3.92% $445 $0 p.a. 90% Go to site More info
3.79% 3.81% $0 $0 p.a. 95% Go to site More info
Auswide Bank Home Loan Plus with Freedom Package - Special Package Discount LVR <= 90% (Owner Occupier) P&I
A high maximum LVR home loan with redraw facility and additional payments.
3.79% 4.18% $0 $395 p.a. 90% Go to site More info
State Custodians Breathe Easy - LVR 80% (Owner Occupier)
No application or monthly fees. Includes offset feature.
3.82% 3.85% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier Special Rate)
A limited time 2 year fixed rate for owner occupiers. Conditions apply.
3.99% 4.81% $0 $0 p.a. 95% Go to site More info
CUA Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
A fixed home loan with no ongoing fees and flexible repayments options.
3.84% 4.59% $600 $0 p.a. 95% Go to site More info
Australian Unity Kick Starter Home Loan
$0 ongoing service fees, maximum 80% LVR and a linked transaction account.
3.79% 3.82% $600 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier Special Rate)
A limited time fixed rate home loan with extra repayment abilities. Conditions apply.
4.09% 4.76% $0 $0 p.a. 95% Go to site More info
ME Basic Home Loan - LVR <=80% Owner Occupier
A low variable rate loan with no application or ongoing fees.
4.09% 4.11% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Standard Rate)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your home value.
4.59% 4.92% $0 $0 p.a. 95% Go to site More info
loans.com.au Essentials - Smart Loan Package P&I
This competitive rate is only available if you package your investment loan with your owner occupier loan.
3.59% 3.61% $0 $0 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Standard Rate)
Get a short term fixed rate for that investment property with no application or ongoing fees.
4.59% 4.95% $0 $0 p.a. 95% Go to site More info
ME Flexible Home Loan Fixed - 3 Year Fixed Rate (Owner Occupier)
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
4.09% 4.80% $0 $0 p.a. 95% Go to site More info
Australian Unity Health, Wealth and Happiness Package - (Owner Occupier)
Get a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
4.05% 4.08% $600 $0 p.a. 90% Go to site More info
NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
A competitive no frills home loan with no application fees for a limited time.
4.17% 4.21% $600 $0 p.a. 95% Go to site More info
Australian Unity Wealth Builder Investor Package Home Loan - Variable
An investment loan with no ongoing fees and borrow up to 90% LVR.
4.19% 4.22% $600 $0 p.a. 90% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Years Fixed (Standard Rate)
Split your loan for free with one of the lowest fixed home loan rates.
4.69% 4.92% $0 $0 p.a. 95% Go to site More info
NAB Choice Package Variable Rate - $250k to $749,999 P&I (Owner Occupier)
A great variable package from NAB which includes offset and redraw features. No application fee.
4.47% 4.86% $0 $395 p.a. 95% Go to site More info
IMB Essential Home Loan - LVR <=90% (Owner Occupier)
Get a discount on your rate and flexible repayment options with this loan.
4.09% 4.09% $0 $0 p.a. 90% Go to site More info
NAB Choice Package Home Loan - 5 Year Fixed (Owner Occupier)
A competitive loan with flexible features.
4.59% 5.05% $0 $395 p.a. 95% Go to site More info
ANZ Simplicity PLUS Home Loan - Special Offer (Owner Occupier)
Enjoy a home loan with no aplication fee or ongoing fee.
4.03% 4.07% $0 $0 p.a. 95% Enquire now
3.88% 3.89% $600 $0 p.a. 90% Enquire now
Westpac Flexi First Option Home Loan - 3 Years Introductory Special Offer (New Owner Occupier, P&I)
A limited time deal for new owner occupiers. Advertised rate includes 1.03%p.a. discount for the first two years.
4.02% 4.40% $0 $0 p.a. 95% Enquire now
St.George Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
A no frills loan with a competitive rate and a maximum LVR of 95%.
4.08% 4.09% $0 $0 p.a. 95% Enquire now
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier) P&I
A package home loan with fee free extra repayments available during the fixed term.
3.99% 4.99% $0 $395 p.a. 95% Enquire now
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier, P&I)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cash back available for refinancers, conditions apply.
3.99% 5.04% $0 $395 p.a. 95% Enquire now
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years, P&I
A low interest rate home loan and competitive two year fixed rate.
3.99% 5.10% $0 $395 p.a. 95% Enquire now
Savings Accounts

If you’ve got a high-interest savings account, a rise in the cash rate will come as good  news. If your bank passes the rate rise on to your account, you’ll be able to enjoy earning an increased amount of interest on your savings balance.

Conversely, a drop in the cash rate will mean that your hard-earned savings earn less interest in your account. While rate rises encourage people to save their money rather than spend it, rate drops do the opposite.

If you have savings stored in a term deposit account, changes to the interest rate won’t affect your savings. Once your deposit matures, you’ll then be able to shop around for a savings account that offers the best rate and features.

Credit Cards

If the interest rate rises and you have debt on your credit card, expect to fork out more in interest charges as you work to pay off the outstanding balance on your card. Cash rate rises are designed to reduce inflation, which could mean that the value of your debt remains the same, but multiple rises would need to be announced for this to happen.

When the cash rate drops, it’s often great news for credit card holders. If your financial institution passes on the rate cut to the  purchase rate on your card, you’ll have to pay less interest on the balance of your card. This can make it more affordable for you to make a range of purchases and you may find it easier to pay off your debt.

However, when your bank doesn’t pass on the interest rate cut, you may wish to shop around for a card that offers a more attractive purchase rate.

History of cash rate changes

Date

Decision

Official Cash Rate

May 2015Rate cut by 0.25%2.00%
April 2015No change2.25%
March 2015No change2.25%
February 2015Rate cut by 0.25%2.25%
December 2014No change2.50%
November 2014No change2.50%
October 2014No change2.50%
September 2014No change2.50%
August 2014No change2.50%
July 2014No change2.50%
June 2014No change2.50%
May 2014No change2.50%
April 2014No change2.50%
March 2014No change2.50%
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This page was last modified on 24 August 2015 at 4:44pm.

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.59%p.a.
comp rate of 3.61%p.a.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)

Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.

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