Mozo Money Moves: Uptick in inflation, home loan cashback deals and new financial strategies
Welcome to the first edition of Mozo Money Moves for 2025. This weekly snapshot covers the latest banking and interest rate news, highlighting pivotal changes in personal finance.
This week, as industry restarts for a new year, rate changes have been minimal. As such, the focus this week is on 2025 guides and predictions; the RBA’s upcoming monetary policy meeting; and – despite little movement in rates over the festive season – the opportunity for borrowers to receive cashback and frequent flyer points by switching home loan providers.
Inflation edges higher, muddying chances of rate relief
The latest Consumer Price Index (CPI) figures from the Australian Bureau of Statistics (ABS) revealed an increase in headline inflation of 2.3% over the 12 months to November 2024, up from 2.1% in October. This slight rise in inflation highlights ongoing pressures within the economy.
However, trimmed mean inflation, a measure that excludes the most volatile price movements, dropped to 3.2% in November, down from 3.5% in October, suggesting a modest easing in underlying inflation trends.
What is trimmed mean inflation?
Not to be confused with a curmudgeon sporting a new haircut, the trimmed mean – or underlying inflation – is a measure of inflation that excludes extreme price movements to give a clearer picture of ongoing cost trends. For example, if the prices of fresh fruit, electricity or fuel spike or drop significantly in a given period, these are excluded from the calculation, allowing policymakers to focus on more stable, long-term price movements. View
The Reserve Bank of Australia (RBA) will look to quarterly CPI data and unemployment numbers, due later this month, ahead of its first cash rate decision for 2025 in mid-February. The Commonwealth Bank forecasts a potential rate reduction at this meeting, while the other Big Four banks aren’t anticipating cuts until at least May.
Australia’s central bank must balance concerns over economic growth with the need to manage rising living costs. With the 2025 federal election looming, the government will be under increasing pressure to deliver on cost-of-living promises. This political backdrop adds another layer of complexity, as the RBA’s decisions could influence both voter sentiment and the broader economic landscape in the lead-up to the election.
What’s happening with home loans in 2025?
Be rewarded when you refinance
Several lenders are providing cashback incentives and reward points to homeowners looking to refinance their home loans. For example, IMB Bank has the highest cashback offer in the Mozo database – up to $4,000 – while Qantas Money and Qudos Bank are giving away Qantas Points. Discover a range of different refinancing incentives at the outset of 2025.
Big Four vs smaller lenders
When comparing home loan rates among the Big Four banks – ANZ, CBA, NAB, and Westpac – alongside smaller lenders, it’s clear that smaller banks often provide more competitive rates. Despite recent rate cuts from the big players, exploring smaller options could lead to better savings on repayments. Check out the latest home loan trends for 2025.
Best home loan rates on offer
Homebuyers looking to lock in competitive rates have plenty of options to consider. For example, lenders Homeloans360, Pacific Mortgage Group, and The Mutual Bank are offering standout deals at 5.89% p.a. These variable rates provide flexibility in fluctuating market conditions, with comparison rates closely matching the advertised rates, ensuring borrowers get a clear view of potential costs. The interest paid column highlights how even small differences in interest rates can significantly impact the total cost of borrowing.
Lowest owner occupied variable rate home loans in the Mozo database
| Lender | Home Loan | Variable Rate (p.a.) | Comparison Rate* (p.a.) | Interest |
| Homeloans360 | Owner Variable Home Loan (Plus) | 5.89% | 5.89% | $586,006.25 |
| Pacific Mortgage Group | Standard Variable Home Loan | 5.89% | 5.89% | $586,006.25 |
| The Mutual Bank | Special Budget Home Loan | 5.89% | 5.90% | $586,006.25 |
| Police Credit Union | Low Rate Home Loan Special Offer | 5.89% | 5.95% | $586,006.25 |
| Queensland Country Bank | Ultimate Home Loan Special | 5.89% | 6.24% | $586,006.25 |
| Community First Bank | Basic Variable Home Loan | 5.94% | 5.99% | $591,870.15 |
| Family First Bank | Standard Variable Home Loan | 5.94% | 6.03% | $591,870.15 |
| Source: mozo.com.au as at 10 January 2025, leading variable rates for owner occupier, principal & interest home loans at $642,000, 80% LVR, interest paid over a 25 year loan term, at the current variable rate. | ||||
| *WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. 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. | ||||
Meanwhile, borrowers can secure some stability with attractive two-year fixed rate loans. BankVic, Easy Street, and Community First Bank are among the top contenders, offering rates as low as 5.49% p.a. These fixed-rate options provide peace of mind with consistent repayments for a limited time, helping borrowers manage their budgets more effectively.
Lowest owner occupied 2 year fixed rate home loans in the Mozo database
| Lender | Home Loan | 2 Year Fixed Rate (p.a.) | Comparison Rate* (p.a.) |
| BankVic | Fixed Rate Home Loan | 5.49% | 6.29% |
| Easy Street | 2 Year Fixed Home Loan | 5.49% | 6.02% |
| Community First Bank | 2 Year Accelerator Fixed Home Loan | 5.49% | 6.30% |
| Australian Mutual Bank | Fixed Rate Home Loan | 5.59% | 6.35% |
| Queensland Country Bank | Special 2 Year Fixed (Ultimate Package) | 5.59% | 6.46% |
| Source: mozo.com.au as at 10 January 2025, leading 2 year fixed rates for owner occupier, principal & interest home loans at $642,000, 80% LVR, interest paid over a 25 year loan term, at the current 2 Year Fixed rate. | |||
| *WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. 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. | |||
For borrowers seeking medium-term stability, Australian Mutual Bank and Northern Inland Credit Union are leading the charge with 3 year fixed rates at 5.49% p.a., offering a balance between competitive pricing and the predictability of fixed repayments. Other notable mentions include Qudos Bank and Police Credit Union, with slightly higher rates but still among the most attractive in the Mozo database.
Lowest owner occupied 3 year fixed rate home loans in the Mozo database
| Lender | Home Loan | 3 Year Fixed Rate (p.a.) | Comparison Rate* (p.a.) |
| Australian Mutual Bank | Fixed Rate Home Loan | 5.49% | 6.24% |
| Northern Inland Credit Union | Dream Value Fixed Home Loan | 5.49% | 6.48% |
| Qudos Bank | Fixed Rate Home Loan | 5.54% | 6.08% |
| Police Credit Union | 3 Year Fixed Rate Home Loan Special Offer | 5.54% | 6.63% |
| Regional Australia Bank | Fixed Rate Home Loan | 5.57% | 7.35% |
| Source: mozo.com.au as at 10 January 2025, leading 3 year fixed rates for owner occupier, principal & interest home loans at $500,000, 80% LVR, interest paid over a 25 year loan term, at the current 3 Year Fixed rate. | |||
| *WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. 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. | |||
New year, new financial strategies
- January 2025 financial checklist. A guide for starting the year strong, focusing on tasks like reviewing your spending, setting financial goals, and superannuation management.
- How to start a new year's budget in 2025. Tips for starting the year with a sensible spending plan, focusing on reducing everyday costs like groceries and dining out.
- How to kickstart your savings goals in 2025. Practical steps for setting clear savings targets, choosing the right savings accounts, and building financial discipline.
- 2025 superannuation trends and predictions. From housing affordability to retirement income reform – wondering what’s new in super? We’ve got you covered.
- Wipe the debt slate clean with these tips for 2025. Suggestions for tackling debt in the new year, including debt consolidation and creating a structured repayment plan.
- Five steps to save for Christmas 2025. Didn’t fulfil your gift-giving desires last year? Consider a dedicated savings account, shopping smarter and tracking your progress.
How do the Big Four savings accounts stack up?
As living costs rise and inflationary pressures continue to strain household budgets at the offset of 2025, it’s helpful to find ways to maximise your savings. While the Big Four banks dominate the savings landscape, their interest rates often fall short of more competitive offerings.
By comparing rates across the big banks and smaller institutions, you can uncover better options for your hard-earned money. This week we weighed up the Big Four’s savings’ offers against the leading providers in the Mozo database to determine whether sticking with Australia’s banking behemoths is costing you more than you think.
Here’s a breakdown of the requirements and conditions you must meet to qualify for the top rates currently offered by Westpac, CommBank, NAB and ANZ.
| Westpac Life | CBA Goal Saver | NAB Reward Saver | ANZ Plus Save | |
| Max rate | 5.00% p.a. | 4.90% p.a. | 5.00% p.a. | 5.00% p.a. |
| Base rate | 1.85% p.a. | 0.40% p.a. | 0.35% p.a. | 0.50% p.a. |
| Monthly deposit requirement | Any amount | Any amount | Any amount | $100 |
| Everyday transaction account | Required | Not required | Not required | Required |
| Monthly balance growth | Required | Required | Required (no withdrawals allowed) | $100 |
| Source: mozo.com.au as at 10 January 2025, Big 4 savings accounts with ongoing bonus rates, applicable at a $10,000 balance. | ||||
How to earn $100 cashback with ING's bundle offer
Kickstart 2025 with a boost to your savings! ING is offering new customers the chance to earn $100 cashback when they open an Orange Everyday and Savings Maximiser bundle.
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