Mozo Money Moves: A sub-5% fixed rate from CBA, LVR as a bargaining chip, Big Four savings changes, and the RBA's next move

Welcome to Mozo Money Moves, your weekly round-up of what’s moving your money and shaping your financial decisions. This week, we're unpacking the latest moves from Australia's largest bank, Commonwealth Bank, which has joined the growing list of lenders offering a fixed rate home loan below 5%. We'll also cover the latest statistics to understand what LVR means for your home loan, a look at what the RBA is watching as its next meeting approaches, and how the "Bank of Mum and Dad" can help kids studying overseas. Plus, we've updated one of our banking guides and have insights into the latest savings, term deposit and home loan rates.

Let’s dive in.

Commonwealth Bank has a new sub-5% fixed rate

The Commonwealth Bank of Australia (CBA) has joined the ranks of lenders offering a fixed rate home loan below 5%, signalling the Big Four's intent to compete more fiercely on price. 

The bank has added a new two-year fixed rate at 4.99% p.a. (7.24% p.a. comparison rate*) for owner-occupiers paying principal and interest with a loan-to-value ratio (LVR) of 70% or less. The loan is available to customers applying through a broker or CBA Home Lending Specialist.

Borrowers must also qualify for a CommBank home loan wealth package, which requires a minimum combined lending balance of $150,000 across home loans or lines of credit.

CBA is the second of the Big Four to offer a fixed rate with a "4" in front of it after Westpac did so in August. This move from Australia's largest bank could put pressure on other major lenders to follow suit.

*WARNING: The comparison rate is only for the example 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.

Leading customer-owned lenders beating big banks

As the home loan market continues to heat up with competition, Mozo's latest analysis shows that customer-owned banks are leading the charge on competitive rates. 

Many low-rate home loans in the Mozo database are from smaller, customer-owned banks and mutuals. While the Big Four banks are beginning to compete on fixed rates, leading customer-owned lenders are consistently setting the pace on variable rates. For borrowers looking for a cheap rate with the flexibility of a variable loan,a better deal may be found with a smaller lender.

What really matters for the RBA’s rate decision

The next RBA cash rate decision occurs later this month, and while there’s been chatter about inflation, wages and economic strength, the real swinging vote may come down to the unemployment rate.

There’s a monthly inflation report due on 24 September but the RBA will not use this as its primary measure for monetary policy decisions until it officially switches from its current quarterly-based inflation data to a monthly framework later this year.

This means that for September, the RBA will still rely on the June quarterly Consumer Price Index (CPI) data, with the next print released in late October, prior to the November decision.

Therefore, this week’s jobs data figures may prove decisive for the RBA’s September meeting, EQ Economics managing director and Chief Economic Advisor at Judo Bank Warren Hogan told Sky News Australia.

Australia has already seen three rate cuts this year, with the most recent in August taking the cash rate to 3.60%. But despite those cuts, economists at the Big Four banks suggest that the RBA won’t move on 30 September.

After holding steady at 4.1% for the first five months of 2025, the unemployment rate rose to 4.3% in June, then slightly declined to 4.2% in July. This week, the Australian Bureau of Statistics (ABS) revealed that unemployment remained steady at 4.2% in August.

These numbers suggest that rates might remain on hold at September’s meeting. However, if jobless figures rise again, this could embolden the case for another cut before 2026.

Refinancing? Why your LVR could give you the edge

If you’re a homeowner looking to refinance, one of the most powerful tools at your disposal could be your loan-to-value ratio (LVR). Mozo research shows that borrowers with a lower LVR (meaning they have more equity in their home) are often offered more competitive rates than those with higher LVRs. 

The average variable rate for a 90% LVR is 6.14% p.a., according to the latest figures in Mozo's database, while the average for an LVR of 70% is 5.85% p.a. – 0.29% p.a. difference. These figures are based on a $500,000 loan for owner occupiers paying principal and interest.

On a $500,000 loan, a difference of just 0.15% p.a. can save you thousands of dollars over the life of the loan. This is because a lower LVR is a lower risk for lenders, making them more willing to offer a discount. If you’re looking to switch, your LVR could be your best bargaining chip.

The Bank of Mum and Dad goes global

As more Australians travel and study abroad, a new study reveals how the “Bank of Mum and Dad” can help children studying abroad with international money transfers. 

​​While the Bank of Mum and Dad is most known for its significant role in helping children enter the Australian property market – with parents now gifting an average of $74,040 for house deposits, according Mozo’s latest report – its influence extends beyond homeownership.

Parents may wish to send money to their kids overseas to assist with costs such as rent and tuition fees. Choosing a specialist provider with low fees and competitive exchange rates could be a more sensible option than simply making a bank transfer.

Australia’s NBN just got upgraded

Major speed upgrades have landed for many NBN users: new tiers are now NBN 500, 750 and 2000 – offering up to 2 Gbps, double the previous fastest speeds available.

If you’re on NBN 100 or 250, you might now qualify for a jump to NBN 500 or 750, at little to no extra cost. However, you’ll need to have a fixed-line connection that’s either fibre-to-the-premises (FTTP) or hybrid fibre coaxial (HFC).

Read on to see whether your current plan keeps up, and what deals you could switch to.

How do the Big Four savings accounts stack up?

Looking to get more from your savings? Mozo's latest analysis shows that the best savings rates are coming from Australia's smaller providers. While the Big Four banks garner a lot of media attention, our research puts them head-to-head with a range of smaller banks and mutuals, revealing that the big guys are often lagging on rates.

For savers focused on maximising their returns, it's a great reminder that the most rewarding accounts are often found outside of the major banks.

Westpac repeats base rate cut, bonus rate unchanged

Westpac and its regional brands – St.George, BankSA, and Bank of Melbourne – have rolled out changes to their savings accounts, effective today (19 September 2025).

The updates affect the Westpac Life Saver and the regional banks' Incentive Saver accounts. While the maximum rate for Westpac's Life Account remains unchanged at 4.25% p.a., the structure has shifted. The base rate has been cut by 0.15% to 0.25% p.a., while the standard variable bonus rate (4.00% p.a.) has been increased to keep the total rate steady.

To unlock the maximum rate on the Westpac Life Saver, customers must ensure their account balance is higher at the end of the month than it was at the beginning, while also keeping the balance above zero. The same conditions apply to the Incentive Saver accounts offered by St.George, BankSA and Bank of Melbourne, which have a different rate of 4.40% p.a. for amounts up to $250,000.

The Incentive Saver also requires the account to grow by $50 to earn bonus interest for those aged 21 or over.

If these requirements are not met, savers will only receive the new base rate of 0.25% p.a., which is a steep drop from the total interest on offer.

Earlier this year, Westpac and its regional brands made similar adjustments to their savings accounts. The base rate on the aforementioned savings account was cut from 1.60% to 0.40% p.a., while the bonus rate was lifted to keep the overall maximum rate steady.

These changes reinforce how important it is to compare savings accounts and consider whether you can realistically and consistently meet the monthly bonus conditions. Otherwise, you may find your returns fall far lower than expected.

NAB tweaks savings rates, boosting bonuses

NAB has updated the variable interest rates on its iSaver and Reward Saver accounts, with the changes effective today, Friday, 19 September 2025.

NAB iSaver

The iSaver now offers a slightly higher fixed bonus margin, increasing from 3.15% p.a. to 3.20% p.a., lifting the total introductory rate to 4.45% p.a. for eligible new customers. The total rate is a combination of this bonus margin and a base rate of 1.25% p.a. After the four-month introductory period, the interest rate reverts to the 1.25% p.a. base rate. The introductory offer is only for new customers who have not held a NAB iSaver account in the past 12 months.

NAB Reward Saver

For the Reward Saver, the bonus component for all balance tiers has risen by 0.05%, bringing the total rate to 4.15% p.a., while the base rate remains unchanged at 0.10% p.a. To earn the bonus component of 4.05% p.a., you must meet two conditions each month; make at least one deposit on or before the second-to-last banking day of the month and make no withdrawals. If these conditions are not met, you will only receive the base rate of 0.10% p.a. for that month.

Looking to grow your savings?

Several banks are offering ongoing bonus rates above 4.50% p.a., but most come with monthly conditions such as minimum deposits, card transactions or balance growth requirements. Here’s a snapshot of some of the top savings account offers this month.

Leading ongoing savings rates on Mozo’s database

Source: mozo.com.au as at 19 September 2025, leading ongoing savings account rates, excluding age restricted accounts, at a balance of $10,000.

CMC Invest vs Westpac – share trading showdown

A Mozo analysis has compared two of Australia's online share trading platforms, CMC Invest and Westpac Share Trading, examining their features, fees, and usability.

CMC Invest has a low-cost structure, which includes $0 brokerage on the first buy order up to $1,000 per day for Australian shares. It also offers commission-free trading on select international markets. This fee model may be appealing to frequent traders and those who make regular, smaller investments.

In contrast, Westpac Share Trading could benefit investors who value the reliability of a major bank and the ease of integrating their trading account with their existing banking services. Its brokerage fees start at $4.95 for trades up to $1,000, and it provides access to both Australian and global markets.

Our analysis concludes that the ideal platform depends on the individual investor's strategy. For full details and a comprehensive breakdown, check out our head-to-head analysis.

Call for greater transparency on basic bank accounts

A new report from the Banking Code Compliance Committee (BCCC), titled Back to Basics, suggests many Australians with low incomes are paying more than they should for essential banking services. The report found that while banks do offer low- or no-fee accounts, they often fail to make this clear to customers through product names or descriptions.

This lack of transparency means eligible customers may not realise they can get a cheaper account, leading to unnecessary fees and undermining the purpose of the Banking Code of Practice.

The report also found that not all banks offering low-fee accounts met the minimum criteria outlined in the Code, including required protections for eligible concession card holders.

The BCCC is urging banks to be more transparent, improve their communication, and ensure they meet minimum standards to better serve financially vulnerable Australians. The committee's Chair, Ian Govey AM, emphasised that banks need to act now to rebuild trust with the customers who rely on these accounts most.

A quick guide to Osko & PayID

We’ve noticed an uptick in interest for Osko and PayID, so we’ve updated and improved our guide to help better explain these payment services. Osko and PayID are two powerful services that let you send and receive money in near real-time, often 24/7. 

These services are a part of Australia’s New Payments Platform (NPP) and have become increasingly popular as Aussies seek faster and easier ways to manage their money. Our refreshed guide covers everything you need to know, from how to set up a PayID to which banks offer these services.

Term deposits above 4% p.a. across different terms

Australians looking for certainty on their savings returns may find term deposits appealing, especially with some banks offering rates above 4 percent. In the table below you’ll find the leading term deposit offers on Mozo’s database, spanning short-term options under a year through to lengthier multi-year terms. But remember, once you commit, your money is locked away until the term ends, and it could be costly to withdraw it early.

Term deposit rate leaders on Mozo's database

Source: mozo.com.au as at 19 September 2025. Rates based on a $25,000 deposit.