Mozo Money Moves: ANZ reconsidering loan scheme, Westpac toughens savings rules, and pressure easing in competitive rental market

Welcome to Mozo Money Moves, your weekly round-up of what’s moving your money and shaping your financial decisions. The wait for rate relief has been officially called off by the majority of the major banks this week, forcing mortgage holders to confront the reality of unchanging repayments stretching into 2026 – unless they negotiate or refinance. ANZ solidified the new consensus by joining its rivals in pushing out rate cut predictions, while Westpac has drastically amended its bonus savings requirements – rewarding commitment but demanding significantly more effort from its customers.

We also examine the current state of personal loan rates and how they’re determined, the Reserve Bank’s assessment of household resilience, look at government proposals to ease Open Banking requirements for smaller players, and review a new loyalty program from fintech giant Revolut that directly challenges the traditional credit card rewards model.

Will we see another rate cut in 2025?

Hopes for a Christmas interest rate reprieve have been effectively dashed this week, with three of the Big Four banks confirming that their expectations for the next RBA cash rate reduction have been pushed into 2026.

ANZ has become the latest major bank to push back its rate cut forecast, now expecting the first reduction to come in February 2026. That brings it in line with the Commonwealth Bank (CBA), while National Australia Bank (NAB) remains slightly more pessimistic, tipping a cut in May 2026.

The shift in forecasts follows a string of stubborn monthly inflation results, which have dampened hopes of any rate relief before the end of the year.

For mortgage holders, that means the ‘wait and see’ approach is no longer cutting it. With rate cuts now likely pushed well into next year, borrowers feeling the pinch from higher repayments may want to take matters into their own hands – by comparing new home loan offers, negotiating with their current lender or refinancing to a sharper rate. Those who don’t could end up paying more than they need to for months to come.

This growing pressure on borrowers is also ramping up competition among lenders, as banks fight harder to hold onto and procure new customers.

Westpac remains the lone outlier among the Big Four, still predicting a single rate cut in November 2025 – though its economists admit that forecast is “far from assured.”

RBA cuts ease mortgages, but personal loans stay high

After a year of relentless hikes, Australian borrowers finally caught a break in 2025. The Reserve Bank of Australia (RBA) has slashed the cash rate three times – from 4.35% to 3.60% – easing pressure on millions of mortgage holders.

For home loan customers, the savings were swift. Most lenders, including the Big Four, mirrored the RBA’s moves within weeks. But for personal loan borrowers, the cuts barely registered. Rates have remained stubbornly high, exposing a widening gap between RBA policy and everyday lending.

Personal loan rates out of step

While mortgage rates have fallen almost automatically, personal loan borrowers have seen little change. Of the 75 providers Mozo tracks, only six have reduced rates since the August cut – and just four passed on the full 0.25 percentage point reduction across all products.

In August, ING trimmed its fixed unsecured loan by 70 basis points (bp) to a starting rate of 6.19% p.a. (comparison rate* from 6.47% p.a.), NAB cut both fixed and variable starting rates by 49bp to 7.00% p.a. (comparison rate* from 8.41% p.a.), NOW Finance dropped by 50bp to start from 5.95% p.a. (comparison rate* from 5.95% p.a.), and Queensland Country Bank made a smaller 20bp cut.

September saw two more movers: Community First Bank reduced rates by 25bp, with its lowest EV and hybrid car loan now 5.64% p.a. (comparison rate* 6.70%), while P&N Bank lowered personal and car loan rates by 25bp, now offering secured loans from 7.74% p.a. (comparison rate* 8.40% p.a.).

Beyond these few changes, lenders have held firm. The average rate for an unsecured personal loan of $10,000 on Mozo’s database at the time of publishing is 9.63% p.a..

Beyond these few changes, lenders have held firm. The average rate for an unsecured personal loan of $10,000 on Mozo’s database at the time of publishing is 9.63% p.a..

Why the disconnect?

It all comes down to risk. Home loans are backed by property, making them less risky and more closely tied to the cash rate. Personal loans are usually unsecured, meaning lenders base interest rates on credit risk rather than monetary policy. 

Rates vary wildly depending on credit history. Right now, the borrowers with excellent credit can score rates starting with a 5, while others might be subject to rates double that or higher. This tiered approach allows banks to manage their risk and maintain profitability, as the higher rates offset the potential losses from borrowers who may default on their payments.

According to Equifax’s latest Quarterly Consumer Credit Insights Report, demand for unsecured loans jumped 8.5 percent in the year to June 2025. With more borrowers in the market, lenders are more encouraged to hold their ground.

Non-bank lenders are competing hard for top-tier customers, but that’s only benefiting the most creditworthy – not the wider market.

What borrowers can do

For personal loan customers, waiting for a rate cut won’t pay off. The best way to save is to take control.

Keep your credit score strong by paying bills on time, keeping credit balances low, and avoiding multiple loan applications close together. Then, compare lenders to find one that rewards your financial profile.

*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.

Relief for renters as price growth stalls

In a welcome sign for renters, Domain’s September Quarter Rent Report confirms that rental price growth has finally stalled, easing pressure in what’s been a fiercely competitive market. The slowdown in rent inflation arrives just as interest rate relief is being pushed further into the future.

Key takeaways:

• Renters may see somewhat more breathing room, as sharp upward pressure on rents cools off.
• The pause in rental growth could temper expectations for aggressive rent hikes, even as fixed costs and mortgage rates remain stubborn.
• For prospective tenants, this might be the moment to explore leases or negotiate terms, especially in markets where vacancy has improved.
• Landlords, meanwhile, may reevaluate rent increases or property strategies given softer demand dynamics.

Here’s how rent movements compare across the capitals:

Source: Domain September 2025 Rental Report

“With the expanded Australian Government 5% Deposit Scheme, more renters are also likely to transition into homeownership, which could ease rental demand over time. However, vacancy rates below 2% mean landlords could still hold the upper hand, keeping the market competitive and challenging,” Domain’s chief of research and economics Dr Nicola Powell said.

For those priced out of ownership where they live, rentvesting – renting in a preferred area while buying an investment property elsewhere – remains a savvy way to get a foot on the property ladder.

Banking strategy and regulatory pressure points

The focus on interest rate uncertainty has coincided with several key strategic moves and regulatory considerations within the banking sector, reflecting both competitive pressure and the evolving compliance landscape.

ANZ considers policy reversal amid falling mortgage share

The AFR reports that ANZ is considering reversing its position on not participating in the Australian Government's recently expanded 5% Deposit Scheme. This review comes as the bank grapples with a falling share of the fiercely competitive mortgage market.  

The scheme is designed to assist eligible buyers, including first home buyers and single parents, by allowing them to enter the property market with a smaller deposit. Major financial institutions typically approach such schemes cautiously due to the lower margins and higher capital requirements associated with lower-deposit lending.

ANZ’s hesitation to join the scheme appears to stem from the fact it already offers its own in-house Lenders Mortgage Insurance (LMI) product – something its Big Four rivals don’t. While ANZ doesn’t provide LMI to other lenders, it covers this insurance internally for its own loans. Earlier this year, the AFR reported the new scheme could wipe out more than half of the $1 billion private LMI market, which may explain ANZ’s initial reluctance to get on board.

First home buyer variable home loan rates on Mozo

Treasury weighs Open Banking break for smaller lenders

The Australian Treasury is reportedly considering giving smaller lenders an exemption from certain parts of the Consumer Data Right (CDR), better known as Open Banking, according to the AFR.

Under the CDR, banks and financial institutions must invest heavily in technology and compliance systems that allow customers to securely share their financial data between providers. While this framework is designed to boost competition and innovation, smaller and regionally based authorised deposit-taking institutions (ADIs) often struggle with the cost of meeting these requirements.

The proposed exemption aims to reduce this burden and ensure smaller lenders can stay competitive with larger banks that have the resources to handle complex IT overhauls. Without relief, some small players could be forced out of the market, potentially concentrating even more power among the Big Four.

However, the move isn’t without trade-offs. Exempting smaller lenders could leave gaps in the data network, making it harder for fintechs and consumers to access a complete picture of the market. That, in turn, might limit the full potential of Open Banking to drive competition and deliver better deals for customers.

Westpac lifts age cap and ramps up Spend&Save conditions

Westpac is rolling out major updates for its combined banking and deposit customers, broadening access but tightening the rules to earn its top rate.

A Westpac spokesperson told Mozo: “Westpac is updating its Spend&Save offer by expanding the eligible age range from 18-29 to 18-34, giving more customers the opportunity to earn up to 5.00% p.a. Starting from 30 October 2025, customers will need to make 20 eligible purchases each month to qualify – ensuring we reward customers who choose to spend and save with us.”

Westpac will also waive or refund the $5 account-keeping fee on the linked Westpac Choice account for customers aged up to 34.

Westpac’s Spend&Save is a bonus interest offer that links a Westpac Choice account to a Westpac Life savings account, rewarding customers who make eligible purchases each month.

The move comes as Westpac sharpens its competitive edge across multiple fronts – just days after cutting variable home loan rates to garner the lowest Big Four variable rate. Together, these updates signal a strategic push to win and retain younger customers by offering stronger value across both savings and lending.

Leading savings rates on Mozo

Revolut launches debit-linked rewards challenge

Global fintech Revolut has launched its RevPoints loyalty program in Australia, aiming to disrupt the rewards landscape dominated by traditional credit cards. The program allows customers to earn uncapped travel and lifestyle perks through everyday debit card spending.  

Revolut is explicitly positioning RevPoints as a "debt-free way" to secure elite rewards, breaking the barrier that has traditionally forced consumers to carry credit card debt to access premium travel benefits. The program includes a valuable 1:1 transfer rate to 10 major airline programs, alongside instant savings on accommodation and the ability to redeem points for gift cards from major retailers such as Amazon, Uber, Woolworths, and Big W.  

By offering high-value rewards linked directly to debit transactions, Revolut is directly challenging the economic model of legacy bank reward schemes, which depend heavily on the interest and fees generated by credit products – which may be highly attractive to debt-averse, digitally savvy consumers.

NGM Group strikes deal to help Aussies save on groceries

Customer-owned NGM Group – the bank behind Greater Bank and Newcastle Permanent – has teamed up with fintech startup Grocerize to help customers cut household costs.

The partnership, a first of its kind for a customer-owned bank, gives eligible Greater Bank and Newcastle Permanent customers a free six-month Grocerize Premium subscription, offering tools to optimise supermarket spending.

Grocerize is an Aussie online price comparison tool designed to help you save money on your grocery shopping at Coles and Woolworths. It allows users to search for products and instantly see the real-time price, including specials, at both major supermarkets.

The platform's main function is to help build your shopping list and then optimise it for the lowest cost. By "Grocerizing" your cart, the service calculates the absolute cheapest way to buy your items and can even split your order between the two stores with a single click.

The digital tool reportedly delivers average savings of 28 percent at the checkout.

NGM Group Chief Customer and Digital Innovation Officer James Cudmore said the collaboration reflects the bank’s strategy to back regional fintech innovation that delivers “practical and values-aligned” benefits to customers.

RBA Financial Stability: household and business resilience

Australia’s central bank released its October 2025 Financial Stability Review, assessing how well the financial system can handle shocks. The RBA found that Australia’s system, including banks, is “well positioned to navigate a period of elevated global uncertainty.”

Household finances have improved slightly, with cash flow pressures easing over the past year as inflation and interest rates have moderated. Further relief is expected, though many Australians still face budget pressures.

The RBA sees the biggest risks to financial stability as coming from overseas, including high government debt in major economies and rising geopolitical tensions. Domestically, the financial system remains strong, with sound lending standards and well-capitalised institutions.

For businesses, some sectors are still struggling, shown by higher insolvency rates, but overall system risk is low. Competition for business loans, including from non-bank lenders, has helped smaller businesses access credit, supporting economic resilience.

Overall, the RBA confirms Australia’s financial system is structurally strong, able to handle local stresses. However, past interest rate increases continue to affect households unevenly, highlighting the importance of careful financial management.