Mozo Money Moves: Refinancing works, jobs market surprises, and credit card offers

Welcome to Mozo Money Moves, your go-to weekly finance wrap, unpacking the latest pricing shifts in Australia’s retail banking landscape.

With 2024 winding down, Aussies are being urged to take a hard look at their home loans – and the numbers don’t lie. Mozo’s latest refinancing report uncovers some revealing stats, showing that Australians who aren’t actively comparing their rates could be out of pocket.

On top of that, the Australian jobs market is displaying surprising resilience, raising questions about whether interest rates will budge anytime soon. As 2025 approaches, there's no clear indication of rate relief, making refinancing an even more compelling option.

From new credit card offers to term deposit rate hikes, there’s plenty to unpack in personal finance. Stay informed and discover the moves that could help you save big in the year ahead!

Refinancing report proves it pays to compare

Mozo released its latest home loan report this week. The analysis, Refinancing Insights 2024: Mozo’s report into the cost of home loan loyalty, uncovered some eye-opening findings. Chief among them: Aussies who aren’t keeping track of their home loan rate could be forking out thousands more in interest compared to those who stay informed.

You can read the full report here and see below for a breakdown of some of the key highlights:

• Two in five Australians with a mortgage still don’t know their home loan’s interest rate – a figure that has remained unchanged from six months ago.
• Borrowers who compare their home loan annually have a lower interest rate than those who “rarely” or had “never compared”.
• Those who compare “rarely” or “never” could save up to $62,684 on a $500k loan over a 25-year term by switching to a lower rate.
• Almost half of all survey respondents said they feel out of control with their expenses.

No rate relief in sight as jobs numbers rise

Australia's jobs market has shown unexpected strength, with the unemployment rate dipping to 3.9% (seasonally adjusted) in November, down from 4.1% in October. This decline, the first time the rate has been below 4% since March, was bolstered by 35,600 new jobs, outpacing forecasts.

This robust employment data may temper expectations for an interest rate cut in February. When unemployment is very low, it becomes more expensive for businesses to hire people and harder to fill positions. With fewer workers available, businesses can struggle to get things done and may be forced to cut back on what they do and raise prices instead – this is inflation.

To moderate prices, the Reserve Bank of Australia (RBA) believes we need to see unemployment rise, at a gradual pace, to around 4.5%. RBA Governor Michele Bullock has indicated that labour, inflation, and retail sales data will be pivotal in shaping the RBA's policy decisions in early 2025.

Cash rate kept unchanged through 2024

During the final monetary policy meeting of 2024, Australia’s central bank chose to hold the cash rate at 4.35%. This meant that the RBA made no changes to the benchmark interest rate in 2024.

What’s delaying cuts? The RBA acknowledged that while headline inflation has decreased to the desired level, underlying inflationary pressures remain, especially in services and wages.

"Measures of underlying inflation are around 3½ per cent, which is still some way from the 2½ per cent midpoint of the inflation target," according to the Statement on Monetary Policy .

“The most recent forecasts do not see inflation returning sustainably to the midpoint of the target until 2026. The Board is gaining some confidence that inflationary pressures are declining in line with these recent forecasts, but risks remain.”

Despite high rates, borrowers still have options

A stable cash rate means continued pressure on mortgage repayments for many homeowners. But Mozo finance expert, Rachel Wastell, says re-negotiating and refinancing are practical and actionable steps for borrowers uncertain about their next move.

“The new year can be the perfect time to take a moment to reflect on where you’re at financially, and as a home loan is one of the largest debts you will probably face in your lifetime – it’s a great place to start,” Wastell said.

“If there’s one home loan lesson to take into 2025 from 2024 - it’s that no one should just accept the status quo when it comes to their mortgage. Just a half a percentage point difference on a $600k mortgage could save you tens of thousands of dollars over a 25 year loan term.

“Shop around, compare rates, and don’t forget about negotiating with your bank. Many are offering better rates for new customers, so it’s worth asking if they can offer you the same deal.”

Year-end card offers: balance transfers and bonus points

ANZ extends balance transfer period

This week, ANZ extended the length of its 0% balance transfer offer from non-ANZ store or credit cards to a new ANZ Low Rate credit card, from 28 months to 30 months. The offer is only available on new cards and the 3% balance transfer fee still applies.

This is now the longest promotional period for balance transfers in Mozo’s database. Until earlier this year, some of Westpac’s regional bank brands were offering 0% balance transfers for 32 months, while NAB and Citi recently reduced their interest-free periods from 28 to 24 months.

Citi boosts bonus points offer

On Monday, Citi increased the number of bonus Velocity frequent flyer points on its Citi Premier credit card from 100,000 points to 110,000 points. In order to redeem this offer you’ll still need to spend $8,000 on eligible purchases within three months from approval and enroll in Points Autosweep, which automatically transfers your points to your nominated Velocity account.

Shifts in savings and term deposits

Regional savings growth

Mozo Expert’s Choice Awards winner for Australia's Best Regional Customer Owned Bank 2024, Regional Australia Bank, launched a new savings account product this week, offering a 5.25% p.a. introductory interest rate for the first three months with unlimited transfers. 

This is one of the higher introductory rates in Mozo’s database but it’s important to be aware that the revert rate drops to 3.25% p.a. after the promotional period ends. 

Rabobank’s High Interest Savings Account leads with a 5.60% p.a. bonus introductory variable rate for the first four months on balances up to $250,000, after which the rate drops to 4.35% p.a.

In October, Regional Australia Bank and Summerland Bank proposed a merger for 2026, aimed at enhancing services, including expanded branches and better pricing. If successful, it would become one of Australia's top ten largest customer-owned banks, with combined assets of approximately $4.8 billion and a customer base exceeding 130,000 members.

Term deposit rate hikes

There were a limited number of term deposit rate rises this week. Those that did see an uptick in interest were typically shorter duration terms. Check out the changes below and use our comparison tables to find the best way to stash your cash.

Get ahead by learning the lingo!

Between sky-high mortgage rates and property prices that feel out of reach, it hasn’t exactly been smooth sailing in 2024.

But don’t stress! As the new year approaches, knowing what buyers, borrowers and agents are talking about can help you navigate the market and make smarter decisions. There’s more to real estate than just interest rates and industry trends. 

Whether you’re tuning into your mate’s DIY podcast or scrolling social feeds, Mozo’s identified five property buzzwords that set the tone for 2025.

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