Mozo Money Moves: rate cuts ruled out, deposits blow out, savings fall short, and energy winners

This week, shifting monetary expectations, surging housing credit, and rising cost-of-living pressures shaped the national conversation. Two of the Big Four banks have now ruled out further Reserve Bank of Australia (RBA) cash rate cuts in this cycle, entrenching the ‘higher for longer’ narrative and prolonging the pain for mortgage holders banking on relief in 2026. At the same time, new analysis of home loan deposit requirements shows just how far out of reach the market has moved for single first-home buyers.

Mozo also examined why most savers miss out on high advertised rates, the features experts want in their first mortgage, and the country’s top energy providers for 2026 as households look for real savings wherever they can.

Cash rate consensus crumbles as NAB rules out cuts

Australia’s monetary outlook took another decisive turn this week, with National Australia Bank (NAB) joining CommBank in abandoning expectations of further cash rate cuts this cycle. The move solidifies the shift towards a stabilising cash rate, prompted by stubborn inflation and evidence the economy still has limited spare capacity.

NAB Group chief economist Sally Auld now expects the RBA to hold the cash rate at 3.60% through 2026. CommBank arrived at the same conclusion in October after the hotter than expected September quarter inflation figures. With two of the country’s largest lenders aligned, the message is clear: the current policy settings may be restrictive, but not enough to materially dent inflation without risking wider economic fallout.

CBA CEO flags unsustainable credit growth

Speaking before a parliamentary committee, CommBank chief executive Matt Comyn cautioned that the current pace of mortgage demand is “too high”. While the bank has grown its mortgage book by 6% over the year, Comyn says a more moderate pace would better support long-term financial stability and access to housing.

That’s not something you’d necessarily expect to hear from a top-tier banking executive.

He noted that while most CBA customers remain ahead on repayments, this stability relies heavily on a tight jobs market. Any deterioration in employment would materially affect borrowers’ ability to service debt.

The staggering reality of the average deposit

Mozo’s latest analysis highlights the sheer scale of Australia’s deposit challenge. With the average house price at $1,016,700, a standard 20% deposit now sits at $203,340.

For a single average earner on $80,286 after tax, saving that deposit while contributing 20% of income would take more than 12 years. For couples on two average incomes, the path shortens to just over six years.

The challenge is most acute in New South Wales, where the average deposit requirement of $251,240 is equal to 3.1 times the typical annual income. The result is a widening divide between those with access to equity or family support and those trying to save from scratch.

These factors together can create a damaging cycle. High credit growth drives prices higher. Higher prices stretch deposit timelines further. As deposits become unreachable, only buyers with equity or family assistance can enter the market. It is precisely the inequality dynamic Comyn warned regulators about.

High savings rates: truth behind the headline numbers

A new analysis by Mozo highlights how easily savers can miss out on the top advertised savings rates when accounts come with strict monthly conditions. Mozo found that what appeared to be a high-interest account was actually a low base rate paired with a conditional bonus, only paid if requirements such as minimum deposits or card transactions were met.

Over the course of a year, missing those conditions in just three months cut interest earnings by around $310, dropping the total from a potential $1,250 to about $941. ACCC data also shows that 71% of customers with bonus-rate accounts do not receive the full bonus rate in a given month.

Mozo’s takeaway is simple: the highest headline rate is not always the most effective. Choosing an account that genuinely matches your saving habits can lead to more consistent returns and fewer unexpected shortfalls.

What experts want from their first mortgage

The same principle of transparency applies to home loans. An expert tracking home loans daily identified six key features that define a genuinely competitive mortgage:

• the lowest possible rate
• a minimal gap between the advertised rate and comparison rate
• low or no fees
• free redraw
• tiered interest rates that improve as your equity grows
• the ability to split the loan for risk management

With rate forecasts diverging, split loans are becoming more valuable, offering certainty on part of the balance while keeping some exposure to potential cuts.

Westpac Flexi First Option vs Greater Bank Great Rate

A comparison between Westpac’s Flexi First Option and the customer-owned Greater Bank Great Rate shows why borrowers should scrutinise features beyond the brand name.

While Westpac’s offering is competitive, Greater Bank tends to win on overall value thanks to lower rates, low fees, and flexible redraw conditions. For borrowers aiming to avoid Lender’s Mortgage Insurance (LMI) by hitting a 20% deposit or planning to make extra repayments, these differences matter over the long term.

Mozo reveals top energy providers for 2026

Electricity and gas bills remain one of the biggest pain points for households. The Mozo Experts Choice Awards for Energy 2026 highlight providers delivering competitive pricing, clear billing, and reliable customer service.

Switching remains one of the quickest ways to cut costs, but only if consumers compare plans rather than staying on outdated offers that drift above market pricing.

Can $500 get you started in share investing?

The Australian Securities Exchange’s $500 Minimum Marketable Parcel rule means new investors can start with as little as $500. But small balances face challenges: limited diversification and the high proportional impact of brokerage fees.

A $15 brokerage fee, for example, immediately absorbs 3% of a $500 investment. This makes low-fee platforms and ETFs apps the most practical options for beginners starting with small amounts.

Travel: essential insurance for Japan and New Zealand

International travel is in full swing, and policy gaps are catching travellers out.

New Zealand: don’t mistake proximity for protection

The Reciprocal Health Care Agreement only covers urgent public hospital treatment. It does not cover ambulance services, follow-up care, dental work, or medical evacuation back to Australia. Comprehensive travel insurance remains essential for even the shortest trip.

Japan: high medical costs and natural disasters

Japan’s healthcare system is expensive, and some hospitals require proof of insurance before treatment. The country is also vulnerable to earthquakes, typhoons, and other natural disasters. Travellers booking snow sports or high-altitude hikes must ensure they purchase the correct cover, and high-value items typically need to be listed individually.

Capitalising on short-term term deposit rates

Given that the RBA has kept the cash rate on hold at 3.60%, the savings landscape is shifting in interesting ways. Inflation is still proving stubborn, yet competition among smaller banks and non-major players is pushing rates higher for anyone looking to lock in a guaranteed return.

For savers keen to maximise returns over the short term, while still keeping some liquidity on the table, term deposits are shaping up as a compelling money move. Right now, some institutions are offering up to 4.40% p.a. on terms as short as six to eight months. It’s a clear signal that competitive lenders are chasing deposits more aggressively, with short-term offers that sit well above the cash rate and outpace what many of the major banks are willing to pay.

Term deposit rate leaders (<1 year) on Mozo