Mozo Money Moves: New lowest fixed home loan rate, markets eye August RBA cut, ANZ raises eyebrows, while term deposits are driven down

Welcome to Mozo Money Moves, your weekly round-up of what’s moving your money and shaping your financial decisions. This week, the conversation is dominated by the looming prospect of a cash rate cut, following the RBA’s surprising decision to hold steady in July, which caught markets and economists off guard. We’ll cover the flurry of activity in the home loan market ahead of next week’s August meeting and break down how banks are responding, from new competitive offers to eyebrow-raising rate hikes and how fast (or slow) lenders will act to implement cuts for borrowers.

But it's not all about mortgages! We’ll also dive into the latest on household living costs, a helpful guide to turning your tax refund into an investment portfolio, and a newly released high-speed NBN plan. Plus, our popular "versus" segment returns to compare car insurance and superannuation giants.

Let’s get into it.

Home loans recap: new lowest rate and a surprise hike

Fastest-moving banks after an RBA rate cut

Following the May 2025 RBA rate cut, Mozo's analysis of lender data reveals that while almost all banks passed on the full 0.25 percent reduction, some were quicker than others. Historically, some lenders have been more inclined to hold back a percentage of rate cuts, especially when the RBA cuts rates rapidly.

Unloan and Athena Home Loans passed on the reduction the same day, while Macquarie Bank followed within three days. A week after the announcement, Gateway Bank and Police Bank made their changes, with others including ubank, Qudos, Bank First, and Coastline all implementing cuts by May 29. All Big Four banks took 10 days or more to effect changes.

Rate cut savings:

Mozo's calculations show that a 0.25% rate cut can significantly impact a household budget. For example, a $660,000 loan over 25 years could see monthly repayments drop by around $100. This highlights the importance for borrowers to monitor their lenders' responses and consider refinancing options if their current rates remain high. See the table below for more information.

New lowest fixed home loan on Mozo's database

Bank Australia has beat out the competition with the new lowest home loan rate on the Mozo database. The Clean Energy Home Loan offers a 3-year fixed rate of 4.59% p.a. (5.54% p.a. comparison rate*) for new builds with a loan-to-value Ratio (LVR) of ≤90%.

The loan, effective from 7 August 2025, is a testament to the increasing trend of "green" or ethical banking, with the Clean Energy Home Loan offering a reduced rate for eligible, energy-efficient homes. This product is a strong option for borrowers looking to reduce their carbon footprint and score mortgage savings in the short term.

BOQ sets a new home loan benchmark

Bank of Queensland (BOQ) is also making a splash in the market with a new two-year fixed rate of 4.89% p.a. (5.62% comparison rate*) for owner-occupiers. This rate is available for loans with a maximum 80% LVR. The offer allows for up to $10,000 in additional repayments annually without penalty, giving borrowers a nice balance of certainty and flexibility.

BOQ is actively promoting split-loan structures, combining a fixed portion for repayment certainty with a variable chunk to benefit if rates drop. For customers, this may deliver best-of-both-worlds flexibility during the current rate cutting cycle.

Why this matters for borrowers:

• Lower rates before RBA’s move – Many lenders are front-running a potential cash rate cut.
• Budgeting – Lock in a sub-5% rate for relief now, with potential for variable savings later.
• Split-loan options – Get a safety net today with upside potential if rates fall tomorrow.

Want to learn more about this offer? See our full news story here.

ANZ raises eyebrows by raising home loan rates

In a head-turning move the Big Four bank’s digital-only arm, ANZ Plus, has increased its variable home loan rates for new customers by 0.16 percent. The bank’s owner-occupier loan now sits at 5.75% p.a. (5.76% comparison rate*), with the investment loan increasing to 6.05% p.a. (6.06% comparison rate*). This decision, made just days before a widely expected RBA rate cut, has been noted as a potential move by the bank to protect its profit margins rather than remain competitive.

*WARNING: The comparison rate is only for the examples given and may not include all fees and charges. Different terms, fees or loan amounts might result in a different rate. The comparison rate displayed is for a secured loan with monthly repayments for $150,000 over 25 years.

ANZ intends to better support small business owners

In a separate announcement, ANZ has introduced new policies aimed at making it easier for self-employed Australians and small business owners to secure a home loan. Changes include:

• Business overdrafts: overdrafts can now be amortised over ten years, up from seven, to enhance borrowing capacity.
• Asset finance: the bank will use the actual repayment for existing fixed-rate asset finance, rather than adding a 3% interest rate buffer, which should make it easier to qualify for a home loan.
• Director fees/company dividends: self-employed customers can now provide just one year of income documentation, down from two, to simplify the application process.

ING to stop accepting Property Share loan structures

Effective 11 August 2025, ING will no longer accept new Property Share loan structures. This applies to situations where two or more applicants, such as friends, co-purchase a property but apply for separate loans secured by the same property. Existing applications already in the pipeline will still be processed.

For more information, you can speak to an ING representative .

Savings showdown: our latest ‘versus’ comparisons

Last week Mozo kicked off a new series of head‑to‑head comparisons, pitting some of Australia’s most popular savings, insurance and super products against each other. This week’s side-by-side showdown features car insurance and super providers.

AAMI vs. Budget Direct car insurance

When it comes to comprehensive car insurance, AAMI and Budget Direct are two popular providers in Australia. A recent Mozo comparison puts their policies to the test, finding that while both offer similar core features, the details can make a big difference.

• AAMI tends to offer more generous limits in some areas, but this may come with a higher price tag.
• Budget Direct is the clear winner on price, earning the Mozo Expert’s Choice Award for Australia's Best Value Car Insurer in 2024. It's also the only one of the two that offers customers the option to choose their own repairer for an added cost.

For drivers who value higher limits on their standard cover, AAMI has the edge, but for those prioritising price, Budget Direct makes a strong case. However, insurance prices can vary depending on individual circumstances, so it’s best to get a quote.

Aware Super vs. HESTA superannuation

Aware Super (Balanced) and HESTA (Balanced Growth) are leading profit-for-member super funds, both with strong track records. A side-by-side comparison reveals some key differences:

• Aware Super offers a broader selection of investment options, including a lifecycle MySuper product that automatically rebalances your portfolio as you age.
• Administration fees are identical, but Aware Super’s investment fees are a touch lower, while HESTA has slightly lower transaction costs. HESTA also deducted an indirect admin fee last financial year, while Aware Super did not.

The best choice depends on your priorities. We compared Aware's Balanced option and HESTA's Balanced Growth option to 30 June 2025. In a nutshell, Aware Super offers a wider selection of investment options, slightly lower fees and higher recent performance over 1-year and 3-year timeframes. HESTA, on the other hand, has slightly higher performance over a 5-year timeframe.

It’s important to note that past performance is not a reliable indicator of future performance.

ABS reports living costs rise for all households

The Australian Bureau of Statistics (ABS) has released its Living Cost Indexes for the June quarter 2025 , showing an increase in living costs for all household types, ranging from 0.4% to 1%.

• Employee households, whose main income is wages, saw the smallest rise in living costs, primarily due to falling mortgage interest charges.
• Households with government payments as their main source of income experienced the largest rise, driven by increases in housing, food, and out-of-pocket electricity costs as government rebates were used up.

The annual rise in living costs has slowed compared to the previous quarter, reflecting slower growth in mortgage interest charges and a fall in fuel prices.

How to turn your tax refund into an investment portfolio

Tax season is here, and for many Australians, that means a welcome refund. We’ve published a new guide on how to use that windfall as "seed capital" to start your investment journey in five simple steps:

1. Decide your budget: You can start small, with as little as $100, to build a diversified portfolio.
2. Pick the right trading platform: Compare platforms based on your experience level, frequency of trading, and the tools you need.
3. Build a diversified portfolio: Avoid putting all your money into a single company. Consider using Exchange-Traded Funds (ETFs) or Listed Investment Companies (LICs) to get broad market exposure.
4. Manage costs: Brokerage fees and other charges can eat into your profits, so look for ways to keep them low.
5. Invest for your goals, not the hype: Align your investments with your personal financial objectives, whether it's long-term growth or dividend income.

Spintel jumps ahead of NBN speed boost with new plan

NBN Co is set to roll out a major speed upgrade in September, but Spintel is already ahead of the game with a new NBN 500 plan. For just $74 a month for the first six months (then $84.95 per month ongoing), customers can access typical evening speeds of 500Mbps. This is a highly competitive price, especially when compared to the average cost of much slower NBN 50 plans. The plan requires an FTTP or HFC connection. You can check your NBN connection here .

A deposit of changes: term deposit rates in downward flux

After a whirlwind of activity in the home loan market, a ripple effect has permeated term deposits, where a number of banks have trimmed their offerings this week.

Term deposit rate changes: 4-8 August, 2025

Source: Mozo database. Selected term deposit rate changes from 4 to 8 August, 2025.