Australian Interest rates

Reserve Bank ‘Cash Rate’ Interest Rates

2 Aug 2011: At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.

• 4.75% July 2011
• 4.75% June 2011
• 4.75% November 2010
• 4.50% October 2010
• 4.50% September 2010
• 4.50% August 2010
• 4.50% July 2010
• 4.50% June 2010
• 4.50% May 2010
• 4.25% April 2010
• 4.00% March 2010
• 3.75% February 2010
• 3.75% January 2010
• 3.75% December 2009
• 3.50% November 2009

Where do you find the best Interest rates in Australia, both for Mortgages and Savings ?

Some options include these web sites:

• myrate
• www.infochoice.com.au
  Their web site says “Compare: 1,000s of financial products from 100s of providers…” and it does seem to have a good and easy to use system.
• www.cannex.com.au
  This is one that I have used many times, and seems to be pretty good. It is also used by other financial sites for their base data.
• www.ratecity.com.au
  Quote from the web site: “COMPARE credit cards, home loans, car insurance, savings accounts and personal loans from 325 Australian banks and institutions using CANNEX data.”

Mortgage Interest rates can be checked at the above sites.

With Mortgages, please note that the standard variable interest rate quoted, is only for people who do not ask for a discounted rate.

Most mortgage holders should be able to get at least 0.5% off that rate, and 0.7% is a common discount.

If you have Savings and a Mortgage, discuss the option of having a 100% offset account linked to your mortgage, it may save you $1,000′s.

Current Australian Mortgage Rates

See this page: Current Australian Mortgage Rates

Historical Interest Rates

Mortgage Interest rates during the terms of the last 4 governments have been:

• 1972 – 1975 : rates went UP from 7% to 10.38% (up 3.38%)
• 1975 – 1983 : rates went UP from 10.38% to 12.5% (up 2.12%)
• 1983 – 1996 : rates went DOWN from 12.5% to 10.5% (down 2.00%)
• 1996 – 2007 : rates went DOWN from 10.5% to 8.55% (down 1.95%)
• 2007 – xxxx : rates went xxxx from 8.55% to …. ?

The average mortgage interest rates during those last two government terms were:

• 11.94% 1983 -1996
•  7.32% 1996 -2007
• ?? 2007 -

Looking at rates since 1989, the average rate for the last 20 years has been 9.12% !!

The calculation of that average figure is from:

F5 INDICATOR LENDING RATES Mortgages