Mozo Money Moves: HSBC shake-up, Macquarie fixed rates, Aussies rely on Feb RBA cut, and the ultimate power move

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Welcome back to another edition of Mozo Money Moves, our weekly wrap of rate changes and finance insights.

This week, reports that UK-based, multinational bank, HSCB, is considering selling its Australian retail banking arm; Australia’s fifth-largest bank, Macquarie, decreased its fixed home loan rates; Aussie mortgage holders are desperate for a February cash rate cut; the ultimate power move that could save customers hundreds; and is it too late to lock-in a high term deposit rate?

HSBC considers selling consumer banking business in Australia

This week, Bloomberg reported that multinational bank HSBC is considering the sale of its Australian retail banking business, attributing the source to “people with knowledge of the matter”. However, the bank has declined to comment. 

While the bank intends to retain its commercial banking operations in Australia, its consumer banking business includes over 40 branches and offices, a mortgage book worth A$31.8 billion (as at November 2024), A$516 million in credit cards, and A$538 million in other loans, as per the Australian Prudential Regulation Authority.  

The potential divestment from the Australian retail banking market may well align with HSBC Chief executive officer, Georges Elhedery’s, broader strategy to simplify the UK lender’s operations.

HSBC recently restructured into regional units, with standalone operations in both Hong Kong and the UK. 

Pundits are also speculating whether one of the Big Four will snap up HSBC’s Australian retail banking division for an estimated $1 billion. 

It wouldn’t be out of character for the major Australian banks, after NAB bought Citibank’s consumer banking arm in 2022 and ANZ acquired Suncorp in 2024.

Macquarie cuts fixed rates ahead of February RBA rate call 

Macquarie, Australia’s fifth-largest lender, made cuts of up to 0.16% to its 1 to 3-year fixed rate terms, ahead of the next Reserve bank of Australia (RBA) cash rate decision on 18 February 2025. 

Macquarie Basic Fixed Home Loan rate changes 

  • 1 year: Cut by 0.16%, now 5.79% p.a. (6.17% p.a. comparison rate*)
  • 2 years: Cut by 0.14%, now 5.65% p.a. (6.11% p.a. comparison rate*)
  • 3 years: Cut by 0.14%, now 5.65% p.a. (6.06% p.a. comparison rate*). 

Note: Rates are for 80% LVR, owner occupier loans with principal and interest repayments, as at 24 January 2025.  

These rate cuts position Macquarie competitively across all loan terms, compared to the average fixed rates in the Mozo database today.

A table showing the average fixed rates for each term, compared to Macquarie's fixed home loan rates and the highest in the Mozo database.
*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 rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

The fixed rate market was relatively stable over December, with the majority of rate moves coming in the form of small increases. However, in the new year the Mozo database has only recorded fixed rate cuts in the shorter 1-, 2- and 3-year terms. 

Macquarie’s cuts may prompt other lenders to consider reducing their fixed rates, as the prospect of a cash rate cut in February draws nearer. 

Cash rate forecasts from the Big Four are currently split between February (ANZ & CBA) or May (NAB & Westpac) of this year. But new survey data confirms Australians have pinned their hopes on the former.

Almost 3 in 4 borrowers relying on RBA cut to keep mortgage repayments on track

A recent Mozo survey found that 71% of Australian mortgage holders are banking on a rate cut from the RBA in February. 

Out of 1,020 survey respondents, 10% admitted they are completely reliant on the RBA delivering a cut at its next meeting to keep their mortgages on track, while 48% are somewhat reliant, and 23% are heavily reliant.

A table of survey results, showing what percentage of Australians rely on a February rate cut to keep their mortgages on track.
Notes: Mozo commissioned a nationally representative survey of 1,020 Australian mortgage holders aged 18 years and over, with information collected between December 2024 and January 2025.

“Nearly three-quarters of mortgage holders are relying on an interest rate cut from the RBA to keep on top of their repayments, as they continue to struggle with the impact of 13 rate hikes,” says Rachel Wastell Mozo’s Money Expert.

“This is concerning because homeowners are essentially counting their chickens before they hatch, when there’s no guarantee the RBA will deliver a rate cut next month.”

Instead, Wastell says, borrowers can explore refinancing or negotiating with their lenders. 

“It’s clear that the majority of mortgage holders are looking to the RBA for relief, but waiting for a rate cut isn’t the only option.

“Refinancing your mortgage now could give you a rate cut today, with no RBA decision required. Or, if you can’t afford to refinance, comparing the rates on offer from other lenders could give you the ammunition you need to negotiate a lower rate for your current home loan.”

More than a dozen lenders, including Macquarie, HSBC, Unloan, Newcastle Permanent, and The Mutual Bank, currently offer rates that start with a ‘5’, according to Mozo’s database. These competitive options could provide much-needed financial breathing room for borrowers struggling with their repayments.

Switching energy providers is the ultimate power move

Recent analysis by Mozo highlights the significant savings Aussie consumers can make by switching energy providers. 

The Mozo Energy Report 2025 found that energy bills are a major sore-spot for Australian consumers, with 44% ranking them among their top financial stressors. Concerningly, 15% say it’s their number one source of stress, outside of rent and mortgage repayments.  

However, by moving from the average to the cheapest available plan, medium-usage households can save up to $419 per year on electricity and $227 on gas. For low-usage customers, the annual savings can amount to $246 for electricity and $156 for gas.

The report also highlights the impact of staying on old plans. Consumers who have remained on the same every plan for two or more years are paying an extra $317 on average each year than those who have switched to newer deals. 

A cash rate cut could mean savers are locked-out of high TD rates 

Inflation is easing and, as we approach a seemingly inevitable cash rate cut in 2025, the likelihood of term deposit rate cuts grows stronger.

According to the Mozo database, the term lengths where the highest average interest rates sit are currently 1-year (4.47% p.a.), 6-month (4.40% p.a.), and 9-month (4.35% p.a.) terms, for individuals with a balance of $25k.

While those averages sit firmly in four-point-something territory, a couple of cash rate cuts over the year could mean that savers find themselves locked-out of rates like these. 

So, prospective term deposit customers may want to consider locking in now, before rates start to decline. 

Notably, AMP Bank’s 6-month term deposit boasts the highest interest rate in the database, at 5.15% p.a. But, for those who are keen to secure a savings rate over the long term, 2- and 3-year term deposit rates are still relatively competitive.

2-Year Term Deposit rates

A table showing the highest 2-year term deposit interest rates in the Mozo database

3-Year Term Deposit rates

A table showing the highest 3-year term deposit interest rates in the Mozo database

As a part of Mozo’s commitment to making your money count for more, each month we “roundup” the rate changes, key banking trends and money moves in the Australian personal finance market. 

If you’d like to see the analysis in full once it’s released, you can subscribe to receive the Mozo Banking Roundup here.



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