Mozo Money Moves: RBA holds firm, Westpac shakes up home loans, Mozo banking roundup and the expanded 5% deposit scheme lands

Welcome to Mozo Money Moves, where we break down the week’s most interesting and relevant finance news and research. While the widely expected move to hold the cash rate has provided a moment of calm, it's also set the scene for a tense November meeting. Meanwhile, there’s plenty more happening in the market, with a major bank shaking up the home loan space, our banking roundup and a new government scheme kicking off that's set to change the game for first home buyers. Read on for all the latest financial happenings.

RBA holds cash rate as November cut odds fade

The Reserve Bank of Australia (RBA) opted to keep the cash rate on hold at 3.60% in the final days of September – a widely anticipated decision that was made on the back of a slight uptick in the monthly inflation figure.

The move comes after the third rate cut of 2025 in August, and the RBA appears to be in a holding pattern as it assesses the impact of its previous decisions.

While the decision was broadly expected in financial markets, it has put a big question mark over whether another cut will land at the crucial November meeting. Markets and economists had another cut pencilled in, but it now seems less certain than it did just a few weeks ago.

Both Commonwealth Bank and NAB have scratched their predictions of a November cut, and a fresh Bendigo Bank economic update suggests that a cut on Melbourne Cup Day is "a drifting favourite" for those paying close attention to the odds. All eyes will now be on the quarterly CPI figures, which are set to be released later this month, for a clearer picture of whether the RBA will have the data it needs to move again before the end of the year.

This cycle of rate cuts is nearing its end, making it important for homeowners to stay proactive and ready to manage their home loans as interest rates steady. Refinancing isn’t only about securing a lower rate, it also means looking at the bigger picture of your finances, including loan fees, repayment flexibility, and the features offered by other lenders.

Westpac has the Big Four's lowest variable home loan

Westpac has shaken up the home loan market with a significant change to its Special Online Offer Flexi First Option Home Loan, and in doing so, has taken the title of the lowest variable rate among the Big Four banks. The product is now available for new home purchases, not just for external refinancers, making it a much more appealing option for a broader range of borrowers.

The bank cut rates by 10bp and investor rates by 20bp, bringing the loan down to 5.24% p.a. (comparison rate* 5.25% p.a.) for owner occupiers with <70% LVRs. This narrowly beats out Commonwealth Bank’s Digi Home Loan, which previously held the lowest rate among the major banks.

This move marks a notable increase in competition among the big banks for new business, as they look to retain and attract customers in a tight market. The battle for market share is heating up, with the banks also competing fiercely on fixed rates. With the RBA in a holding pattern, this latest rate cut from Westpac could put pressure on the other majors to follow suit if they want to remain competitive with their headline rates.

Government launches expanded 5% deposit scheme

As of October 1, the rebranded Australian Government 5% Deposit Scheme has been significantly expanded, allowing first home buyers to purchase a property with a deposit as low as 5% without having to pay for costly Lender's Mortgage Insurance (LMI). The changes are designed to help more Australians get onto the property ladder, especially in a market where saving for a deposit has become a monumental challenge.

The scheme was expanded to incorporate significant changes aimed at making it more accessible to a wider range of Australians and first-home buyers:

• Unlimited places. The annual cap on the number of available places will be removed.
• No income caps. The previous taxable income caps for applicants will be eliminated.
• Increased property price caps. The maximum property prices  will be significantly raised. For example, the cap in Sydney will increase to $1.5 million, and in Melbourne to $950,000.
• Simplified regional access. The Regional First Home Buyer Guarantee has been consolidated, simplifying access for those in regional areas.

According to new data from a Domain report, the change is set to dramatically reduce the amount of time it takes to save for a home deposit. What once took the better part of a decade can now be done in just a couple of years, particularly for those earning an average wage and living in a shared household. The expansion of the scheme could be a game-changer for many prospective homeowners.

For those looking for more information on the ins and outs of the scheme, including eligibility and how to apply, Mozo updated its comprehensive guide this week.

See the leading variable first home buyer loans on Mozo’s database as at 3 October 2025. 

First home buyer variable home loan rates – October 2025

Banking Roundup: rates on the move

The latest Mozo Banking Roundup highlights key movements across consumer banking. Below you will find some of the most significant changes throughout the month of September 2025.

Home loans: rates still falling

In the home loan space, variable rates continued to drop, with several lenders passing on August’s RBA cash rate cut and others making further, targeted reductions.

• Variable rate cuts: Lenders including Australia Mutual Bank, Bank of Sydney, G&C Mutual Bank (for First Home Buyers), MOVE Bank, and QBANK all reduced their variable rates by 25 basis points (bp). Macquarie Bank, ME, Qudos Bank, and Greater Bank also made cuts.
• Fixed rate free fall: Fixed rates kept heading lower. MOVE Bank made a significant cut to its owner-occupier rates, slashing its 1-year term by 70bp and its 2-year term by 65bp, with its lowest rate now 4.99% p.a. (comparison rate* 5.32% p.a.) for 2 years. Pacific Mortgage Group also dropped its 2-year rate by 35bp to just 4.64% p.a. (comparison rate* 5.06% p.a.).
• Special offer: The Commonwealth Bank is giving new online Digi Home Loan applicants up to 300,000 Qantas Frequent Flyer Points, depending on the size of the loan. T&Cs apply.

*WARNING: The comparison rate is only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Credit cards: balance transfer offers vanish & reappear

The credit card market saw a significant shake-up in balance transfer offers.

• Offers removed: Two major issuers – Bank of Queensland and Citi – removed all balance transfer offers from their cards, with Citi losing its top 0% for 24 months deal.
• Offers re-launched: Following brief sales pauses, Coles, Great Southern Bank and Qantas Money resumed applications and then re-introduced new offers.
• Bonus points boost: American Express increased the bonus points on its Velocity Escape Plus Card from 20,000 to 50,000, while Qantas Money announced large bonus offers, including 150,000 upfront points on its Titanium card. T&Cs apply.

Personal loans: rates down, fees waived

Personal loan rates fell, while the Big Four adjusted application fees.

• Rate cuts: Community First Bank and P&N Bank both dropped their car and personal loan rates by 25bp. Westpac reduced the starting rate on its fixed unsecured Personal Loan by 49bp to start from 7.00% p.a. (comparison rate* 8.41% p.a. based on an amount of $30,000 and a term of 5 years).
• Fee changes: ANZ and Commonwealth Bank both ended their application fee waiver offers for certain unsecured and green personal loans. Conversely, Westpac introduced a waiver for its $250 application fee on its fixed unsecured Personal Loan until the end of October.

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments.

Deposits: cuts dominate savings and term deposits

Unfortunately for savers, rate cuts were the theme of the month.

• Savings accounts: There were quite a few rate cuts in September, with a notable number of base rates being pushed even lower. Heritage Bank, P&N Bank, Regional Australia Bank, and Westpac all cut base or bonus rates. However, NAB was an exception, increasing the ongoing bonus rate on its Reward Saver and the introductory rate on its iSaver by 5bp.
• Term deposits: Most changes to term deposit rates were also cuts. Australian Mutual Bank and Macquarie decreased their rates. Interestingly, some providers shifted their best rates to different term lengths. P&N Bank made the largest switch, increasing its 4-month rate by 115bp to make it 4.05% p.a., while reducing its 5-month rate by 90bp. In a mixed move, ING cut some shorter terms but increased its 6-month, 1-year, and 2-year rates.

*WARNING: The comparison rate is only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Budget Direct sweeps Mozo Experts Choice Awards

Budget Direct has plenty to celebrate, taking home multiple wins in the Mozo Experts Choice Awards 2025 across car, home and landlord insurance.

The insurer stood out in a highly competitive field, with Mozo’s experts reviewing more than 150 policies from 53 car insurers, 41 home insurers and 36 landlord insurers. With a trophy cabinet already stacked with individual wins, Budget Direct also secured Best Value Insurer of 2025.

If you’re comparing providers or taking out cover for the first time, here’s a closer look at Budget Direct’s award-winning policies and reviews.

Travellers warned of massive international ATM fees

Global fintech company Wise has revealed the most expensive countries for ATM withdrawals, with some of Australia’s favourite travel destinations among the worst. Vietnam topped the list, with average fees of 27.1% per transaction, followed by Argentina (20.5%), Colombia (16.66%) and Indonesia (10.91%).

The warning comes as more Aussies head to Southeast Asia, with recent ABS data showing a 20% annual increase in short-term trips to Vietnam. Indonesia remains the most visited destination overall – with Bali a long-time favourite for holidaymakers – accounting for 15% of all resident returns. But both hotspots can sting travellers with high withdrawal costs.

Wise’s ANZ country manager Tristan Dakin said simple steps can help reduce charges, such as using bank-operated ATMs, making fewer but larger withdrawals, and choosing local currency over AUD when prompted. These habits can prevent holiday budgets from being eaten away by fees.

It’s not just ATMs catching travellers out. A Wise and YouGov survey found 90% of Australians still rely on methods with hidden costs, including exchanging cash locally or using bank-issued debit, credit and prepaid travel cards. Inflated exchange rates often mask increased margins, meaning so-called “fee free” cards can end up costing more.

Neglecting upkeep could void home insurance

A new Allianz Home Care report has warned that Australian homeowners are putting themselves at risk by prioritising cosmetic upgrades over essential maintenance. The report found that Aussies spend an average of just $3,400 a year on upkeep, which may not be enough to prevent serious – and costly – damage.

Experts say a “set and forget” attitude is leaving many homes vulnerable. Small jobs, like replacing a $20 flexi hose or resealing a roof for $500, could prevent damage worth tens of thousands of dollars. As Rebecca Cardamone, founder of Ace Properties Agency, noted, practicality and upkeep should be valued as highly as design and aesthetics.

The report also highlights a major insurance trap: home insurance is not a warranty. It’s designed to cover sudden and unexpected damage, not gradual wear and tear. Allianz Chief Claims Officer Luke Whenman said many policies exclude issues caused by neglect, which can leave homeowners footing huge repair bills.

Problems such as termites, mould or tree root damage are often deemed preventable and therefore not covered by insurers. To avoid nasty surprises, homeowners are urged to read their Product Disclosure Statement (PDS) carefully and keep on top of regular maintenance – starting with something as simple as replacing that corroded flexi hose.

Financial checklist: 5 moves to make this month

October is a great time to get your finances in order for the rest of the year. To get started, check out our October Financial Checklist for five simple money moves you can make this month. It includes a rundown of some smart things you can do to take control of your finances, from ditching one small regular expense to taking the time to learn more about your super returns.