Top Home Loan Options for October 2024: What You Need to Know

In October 2024, the Reserve Bank of Australia (RBA) maintained the national cash rate at 4.35% during its September meeting, resulting in stable mortgage rates for the time being. The next RBA decision is scheduled for November 5, 2024. If the cash rate remains unchanged, it will mark the eighth consecutive meeting at this rate.

Globally, interest rate adjustments are making waves, particularly as the US Federal Reserve recently reduced its benchmark rate by 0.5%. However, RBA Governor Michele Bullock has pointed out that Australia's economic landscape is distinct from that of the US, as well as from countries like New Zealand and Canada, which are experiencing higher unemployment rates.

So, when can Australian mortgage holders expect some relief from high rates?

While the RBA has not indicated any imminent rate cuts, recent data from the Australian Bureau of Statistics (ABS) shows a decline in inflation. As of August, annual inflation dropped to 2.7%, falling within the RBA’s target range of 2-3%—the lowest level since August 2021. This decline suggests that inflationary pressures are easing, potentially setting the stage for future rate reductions. However, the RBA has cautioned that it may take some time before inflation stabilizes within the target range sustainably.

For those hoping for a rate cut, the timeline remains uncertain. Economists are split on predictions; some believe the current rate will persist until mid-2025, while others speculate that we could see up to two rate cuts before the year concludes.

With the RBA's actions still unclear, mortgage holders feeling financial pressure can proactively seek better mortgage deals. Refinancing to a home loan with a lower interest rate could provide immediate financial relief.

When considering refinancing, it’s essential to evaluate the overall costs associated with switching loans. Borrowers should also assess the features and flexibility of various loan options to determine which best aligns with their financial objectives and household requirements.

RateCity’s Real Time Ratings™ can assist you in quickly comparing available options by consolidating cost and flexibility into a single star rating. These ratings are frequently updated, and the top-rated mortgage options are showcased on RateCity’s Home Loan Leaderboards. Many of the highest-rated mortgage deals across different categories may also qualify for a RateCity Gold Award.