The Reserve Bank of Australia (RBA) today cut the cash rate by a further 25 basis points after already doing so at its regular meeting at the beginning of the month.

Today's cut takes the cash rate to 0.25%, and is likely to be the RBA's last cut for a long time, having recently flagged that it would not lower the cash rate below this threshold.  

Thinking about refinancing to a low-rate, variable owner-occupier home loan? The table below displays some of the lowest-rate variable home loans currently on the market for owner occupiers:

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

The RBA usually only meets on the first Tuesday of every month (except January), with its next regular meeting scheduled for Tuesday April 7. 

But earlier in the week, RBA Governor Philip Lowe said there would be an additional meeting to "announce further policy measures to support the Australian economy".  

This isn't the first time the RBA has made a rate cut outside of its regular meeting - it did one in July 1997, for example - but it is the first time two changes have been made in one month. 

Not even at the height of the global financial crisis (GFC) did the Reserve Bank resort to such measures.

However, the crippling effects of the coronavirus on both the domestic and global economy forced the RBA's hand to take this unprecedented measure in a bid to stabilise Australia's economy and soften some of the blows to come. 

Governor Lowe's address was very different to one he usually delivers each month. 

He admitted that the primary response to the virus is to manage the health of the population, but stated that monetary and fiscal policy play an important role in reducing the economic and financial disruption it causes. 

"At some point, the virus will be contained and the Australian economy will recover," he said. 

"In the interim, a priority for the Reserve Bank is to support jobs, incomes and businesses, so that when the health crisis recedes, the country is well placed to recover strongly."

Mr Lowe also said the board would not increase its cash rate target until full employment is reached and inflation is "sustainably" within the 2-3% range. 

He also stated that quantitative easing will start tomorrow, and that banks will be able to obtain additional funding if they increase lending to business, especially to small and medium-sized businesses.

This lending facility is for up to $90 billion, and more details will be provided in a second statement coming later today. 

"Today's policy package from the Reserve Bank complements the welcome fiscal response from governments in Australia," he said. 

"Together, these measures will support jobs, incomes and businesses through this difficult period and they will also assist the Australian economy in the recovery."

There's already been a flurry of activity in just the few minutes since this announcement. 

Commonwealth Bank CEO Matt Comyn said these are unprecedented times, and call for unprecedented measures. 

Commbank has already:

  • Reduced fixed rate home loans for one, two and three years by up to 70 basis points to a new low of 2.29% p.a. 
  • Launched a new term deposit rate of 1.70% p.a. for terms over 12 months (an increase of 60 basis points)
  • Reduced small business loan rates by up to 100 basis points 

Readers who want to keep track of the latest round of rate cuts to home loans can check out Savings.com.au's emergency rate cut page, and can also look at what each lender cut by for this month's first rate cut

And if you need to stash some cash in a term deposit, the table below displays a snapshot of one-year term deposits with high interest rates. 

Update resultsUpdate
BankTerm DepositInterest Rate Interest Frequency Term Automatic Rollover Maturity Alert Early Withdrawal Available Minimum Deposit Maximum Deposit Notice Period to Withdraw Online Application Joint Application TagsFeaturesLinkCompare
5.20% p.a.
At Maturity, Annually
12 months
$5,000
$1,000,000
Featured
  • Guaranteed rate of return
  • Manage your term deposit online
  • $0 monthly account fee
5.35% p.a.
At Maturity, Monthly
12 months
$25,000
$1,000,000
31 days
5.10% p.a.
At Maturity
12 months
$50,000
$99,999,999
7 days
5.25% p.a.
Annually
12 months
$1,000
$1,000,000
31 days
5.05% p.a.
At Maturity, Annually
12 months
$25,000
$10,000,000
31 days
5.25% p.a.
At Maturity
12 months
$1,000
$1,000,000
8 days
5.15% p.a.
Annually, At Maturity
12 months
$1,000
$500,001
31 days
5.05% p.a.
Annually, At Maturity
12 months
$1,000
$99,999,999
31 days
5.00% p.a.
At Maturity
12 months
$5,000
$500,000
31 days
5.00% p.a.
At Maturity, Annually
12 months
$5,000
$24,999
31 days
5.00% p.a.
At Maturity
12 months
$5,000
$99,999,999
1 day
5.20% p.a.
At Maturity, Monthly
12 months
$25,000
$1,000,000
31 days
More term deposits
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of . View disclaimer.





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