The Reserve Bank of Australia (RBA) has cut the cash rate to 0.10% in its board meeting today just hours before the Federal Budget is released.
The move has come as a bit of a surprise, but wasn't completely unexpected.
Westpac and NAB had been forecasting an October rate cut, before Westpac backflipped and revised its forecast of a rate cut for November to give the Federal Government time to sell its Budget.
A Bloomberg poll also revealed only 4 out of 24 economists surveyed thought there would be a rate change in October.
But that hasn't stopped the RBA from pulling the trigger and cutting the official cash rate to 0.10% in its board meeting today, just hours ahead of tonights Federal Budget at 7:30pm (AEDT).
Looking to compare low-rate, variable home loans? Below are a handful of low-rate loans in the market.
More to come...
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
- The big four banks are: ANZ, CBA, NAB and Westpac
- The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
- The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
- If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan.
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