Mozo Money Moves: RBA delivers another rate cut, but is it good news for everyone?

Welcome to Mozo Money Moves, your weekly round-up of what’s moving your money and shaping your financial decisions. This week, the Reserve Bank of Australia (RBA) has once again taken centre stage, delivering a widely anticipated rate cut in a move to further support the economy. While this is music to the ears of borrowers, not all lenders are playing the same tune, with a noticeable lag from some of the biggest players in the market.

This week's edition also dives into the implications for savers as interest rates trend downwards, a cautionary tale for those seeking financial advice, a new perspective on home loan trends, and a look at how Australians are spending their money on subscriptions.

RBA cuts cash rate to 3.60%

The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to a new low of 3.60%. This marks the third rate cut of the year, a reflection of the RBA’s shifting focus from combating inflation to supporting economic growth. The decision follows headline inflation slowing to 2.1% and core inflation at 2.7%, both within the RBA’s target band of 2-3%.

While the immediate impact is a welcome relief for many borrowers, the RBA has signalled that future easing will likely be gradual as it balances inflation risks against economic fragility. The next RBA monetary policy meeting is scheduled for September 29-30, 2025.

See our full breakdown of the decision and find out which lenders have cut home loan rates.

Two online lenders act fast on RBA cut, big banks lag

While the RBA delivered its rate cut on August 12, the response from lenders has been a tale of two speeds. Online-only lenders Unloan and Athena wasted no time, immediately reducing their variable home loan rates by the full 0.25%.

• Unloan’s variable rate is now 5.24% p.a. (5.15% p.a. comparison rate*).
• Athena’s variable rate has been lowered to 5.64% p.a. (5.59% p.a. comparison rate*).

In contrast, the Big Four banks – ANZ, CommBank, NAB, and Westpac – have announced rate cuts for their variable home loans but are making customers wait for relief. ANZ and CommBank customers will see their new rates take effect in 10 days, while NAB is delaying its changes for 13 days and Westpac is pushing it out to a full two weeks.

This delay from the major banks highlights a growing opportunity for borrowers, especially considering the average variable rate in Mozo's database is 6.12% p.a. Using Mozo's mortgage repayment calculator, if you refinance from the average rate to the lowest available in Mozo’s database – currently 4.99% p.a. (5.04% p.a. comparison rate*) from Police Credit Union – a borrower could save $341 a month.

Source: Mozo database as at 15 August 2025, based on advertised variable rates for owner occupiers, paying principal & interest, borrowing $500,000, loan to value ratio of 80%.

ABS data shows investment loans drive growth in Q2

New data from the Australian Bureau of Statistics (ABS) reveals that investment loans were the primary driver of growth in the home lending market for the June quarter. The number of new investment loans rose by 3.5%, while new owner-occupier loans grew by a more modest 0.9%. The number of owner occupier first home buyer loans grew by 1.7%.

This growth comes despite a fall in the March quarter and more subdued year-on-year growth. According to Dr. Mish Tan, ABS head of finance statistics, the full impact of the February and May rate cuts has yet to be seen, with further activity expected later in the year.

The next big thing in home loans

As lenders jostle for position in an increasingly competitive market, they're innovating with new products and features to attract borrowers. One trend gaining traction is split-loan structures. This strategy allows borrowers to combine a fixed portion of their loan for repayment certainty with a variable portion to take advantage of potential future rate cuts. This ‘best-of-both-worlds’ approach gives borrowers flexibility at a time when rates are trending downwards.

Cashback offers continue to be a key incentive for refinancing. Lenders are offering thousands of dollars in cashback and points to entice new customers, making it a compelling time for switched-on borrowers to review their options and potentially save big on their mortgage.

Greater Bank’s “Discounted Great Rate Home Loan” features one of the lowest variable rates in Mozo’s database at 5.49% p.a. (5.72% p.a. comparison rate*) and offers up to $3,000 cashback when applying through their digital application channel (terms and conditions apply).

This dual value proposition – low rates plus generous cashback – positions Greater Bank as a strong contender for borrowers seeking the stability of a bank and upfront savings.

Banks cut savings rates after RBA decision

While the RBA's rate cut is a boon for borrowers, it signals a tougher time ahead for savers. Banks are already beginning to reduce their savings rates, a clear indication that what's good for home loan holders could be bad news for those looking to grow their nest egg. 

As we’ve seen in previous rate cycles, banks are often quick to pass on rate cuts to savers while delaying the reductions for borrowers. This makes it more important than ever to be vigilant and compare savings accounts to ensure you are getting the best possible rate.

See the full list of providers on Mozo’s database that have made cuts by clicking the link below, along with practical strategies to protect your savings and maintain a competitive interest rate.

What will savings rates be like in 2026?

Looking ahead, the forecast for savings rates next year is marked by an expectation of further rate cuts by the RBA. The Big Four banks are predicting the cash rate could fall to around 3.10% to 3.35% by early 2026, with Westpac even suggesting it could bottom out at 2.85% by mid-2026. These forecasts are driven by a combination of low inflation and sluggish economic growth, giving the RBA a strong justification to continue easing monetary policy.

For savers, this means preparing for a lower-return environment compared to the high-yield period of 2024 and early 2025. While rates will likely fall, high-interest savings accounts from challenger banks may continue to offer more competitive rates for a time. Savers might also consider locking in current rates with term deposits before further cuts take effect.

Read our in-depth analysis explaining the outlook for savings accounts in 2026.

Up Bank sparks outrage with savings rate change

As reported in an earlier edition of Mozo Money Moves, online provider Up Bank has introduced a major change to its savings accounts, splitting them into two tiers from September 1, 2025. 

Some criticised the move , which introduces a "Grow rate" of 4.85% p.a. for accounts with no withdrawals and a "Flow rate" of just 1.50% p.a. for accounts with withdrawals. Customers will also need to make at least five eligible card purchases per month to earn bonus interest. 

The changes have been met with pushback from customers who feel the new conditions unfairly punish them for accessing their own money. However, this new structure replaces the previous rate of 3.85% p.a., which was also conditional on meeting a monthly transaction requirement.

Savings showdown: ubank vs Unloan

Mozo recently kicked off a new series of head‑to‑head comparisons, pitting financial products against each other. This week’s side-by-side ‘versus’ showdown features home loan providers.

ubank and Unloan are popular online-only lenders backed by major Australian banks (ubank by NAB and Unloan by CommBank). While both offer competitive rates compared to their parent companies, there are some key differences to consider:

• Product offering. Unloan offers only a variable rate home loan with no offset account, whereas ubank has a wider range of fixed and variable loans, including offset accounts.
• Loyalty and pricing. Unloan's standout feature is its loyalty discount, which automatically knocks 0.01% p.a. off your interest rate every year of your loan, up to 30 years. Ubank's rates are tied to your loan-to-value ratio (LVR), with lower rates for borrowers with more equity.
• Borrower eligibility. Unloan's home loans are available to both owner-occupiers and investors, including some self-employed applicants. In contrast, ubank home loans are only available to those with permanent, casual, or contract employment – not self-employed.

Here’s a brief breakdown of how Unloan and Ubank compare across interest rates, product offerings, and features to help you decide which might suit your needs.

Source: Mozo database. Information accurate as at 15 August, 2025. It’s important to note that Unloan’s rates were lowered earlier this week following the RBA decision, while ubank has announced it will be reducing variable home loan rates, effective 21 August, 2025.

*WARNING: The 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.

How to trust your financial adviser again

The recent collapse of investment funds First Guardian and Shield Master has left many Australians' retirement dreams in tatters, with some losing as much as $500,000 or more from their superannuation. The scandal was a two-part disaster, involving an alleged Ponzi scheme and a few unscrupulous financial advisers who funnelled clients' life savings into the trap.

It's important to properly vet a financial adviser. Here are some key questions to ask:

• Their philosophy. Do they talk about partnership and your long-term goals, or just returns?
• How they are paid. Do they clearly document their fees and commissions?
• Investments. Do they compare multiple products, or just a limited pre-selected menu?
• ASIC register. Check the ASIC Financial Advisers Register to verify credentials and history.

Coles credit cards undergoing major transition

Coles is implementing a significant system update for its credit cards , with a full transition scheduled for September 8, 2025. This transition is part of an effort to improve security and provide customers with a better, more secure user experience.

Key details for customers:

• New digital services. The existing Coles Mobile Wallet App will be replaced by the new Coles Credit Cards App. A new online service centre will also be launched.
• Coles account required. Customers must connect their credit card account to a Coles account and use those login details for the new services.
• Service outage. A scheduled outage will occur from September 5 to September 8, affecting some account services. Card usage for purchases will not be affected.
• Other changes. New account numbers will be assigned, direct debits will be rebranded as "AutoPay," and electronic statements will become accessible only through the new platform.

Aussies spend hundreds on unused subscriptions

New research from Westpac has revealed that Australians are wasting hundreds of dollars each year on subscriptions they don’t use or have forgotten about. The data found that three in ten Australians lose up to $600 annually on duplicate services and unused apps, with the average person paying for more than five subscriptions at a time. The most common reason for overspending is forgetting to cancel a trial before auto-renewal.

Westpac’s data shows that the average Australian is spending about 20% more than they realise on subscriptions, representing an average annual cost of $141. The bank’s acting chief executive, consumer, Carolyn McCann, noted that while these costs may not seem like much in isolation, they can add up to thousands of dollars in potential savings that could be redirected elsewhere.

By conducting a monthly audit of all active subscriptions and canceling those that are no longer beneficial, you can free up funds and put them towards more essential or rewarding goals.

Post-RBA term deposits: a tale of two directions

The landscape for term deposit holders has become a mixed bag, with some providers slashing rates while a few buck the trend by increasing them. This week saw a raft of changes across the board, highlighting the importance of staying vigilant and comparing your savings options.

Here are some of this week’s biggest term deposit changes:

Source: Mozo database. Selected term deposit rate changes from 11 to 15 August, 2025.