Mozo Money Moves: Australia’s housing price heatwave, ANZ’s rate surprise, and a warning about customer loyalty traps

Australia’s financial landscape this week paints a tale of property values climbing to new heights and a youthful push to grow wealth through investment amidst shrinking savings returns.

Domain’s latest report confirmed that house prices are booming, hitting growth peaks not seen in nearly four years and reshuffling the rankings of Australia’s most expensive cities. Simultaneously, ANZ chose to cut rates on key savings accounts, despite the Reserve Bank of Australia (RBA) maintaining a holding pattern on the official cash rate.

Compounding pressures is the volume of disputes handled by the peak financial complaints body this past financial year and a stark warning on housing policy. Mozo offers practical guides on how consumers can navigate loyalty traps and build financial resilience.

Housing surge reshapes the capital city leaderboard

Home values across Australia’s capitals are rising at their fastest pace in nearly four years, according to Domain’s Quarterly House Price Report September 2025. Median house prices across the combined state capitals jumped 2.9% over the three months to September, extending the annual growth streak by 7.5% year-on-year.

Sydney’s median house price hit $1.75 million, while Melbourne’s reached $1.08 million. But the standout story was Brisbane, which officially overtook Melbourne and Canberra to become the nation’s second-most expensive capital for houses. Its median price jumped 3.7% over the quarter to $1.1 million.

Affordability pressures may be directing buyers toward units, with apartment price growth now outpacing houses in several cities. Meanwhile, government incentives are again fuelling demand, particularly Brisbane’s frenzy ahead of October’s expanded 5% Deposit Scheme.

With three cash rate cuts already behind us and market economists tipping more to come, plus more accessible government housing schemes, home prices may climb higher still.

Capital city median prices and quarterly change (September quarter 2025)

Here’s your table cleaned up with the emojis removed:

Source: Domain’s Quarterly House Price Report September 2025

As prices climb across Australia’s capitals, locking in a competitive fixed-rate home loan can help buyers manage repayments and gain certainty amid a shifting market. For those considering their options, these current short term fixed rates offer a useful snapshot.

Leading 1-year fixed rate home loans on Mozo

National 5% home deposit scheme under scrutiny

AMP chief economist Shane Oliver didn’t mince words this week, calling the federal government’s 5% Deposit Scheme scheme “totally ridiculous”. While speaking on Yellow Brick Road founder Mark Bouris’ Property Insights podcast he suggested the policy will boost demand without increasing supply, simply pushing prices up for everyone else.

Oliver warned that for “everybody else down the queue, the price just goes up by the same amount.” Domain’s latest data (see above) backs him up – buyers rushed to secure homes before the October expansion, sending Brisbane prices soaring. In these instances, the initiative may reward existing owners more than help new buyers.

Expanding accessibility of the program has attracted a mix of support and criticism. Arguments from economists, real estate bodies and industry groups highlight the broader debate over whether the scheme genuinely helps new buyers or primarily inflates prices.

Cashback deals getting more generous

While policy divides opinion, lenders are still competing to win over borrowers. The Mutual Bank has rolled out one of the largest cashback offers in recent months – $5,000 for eligible first home buyers taking out loans of $500,000 or more.

Upfront cash can help ease the sting of stamp duty or conveyancing costs. However, be aware that some cashback deals can mask higher interest rates and fees over time. Always check the comparison rate before assuming a cash bonus is worthwhile.

ANZ cuts savings rates before RBA moves

In a surprise to savers, ANZ trimmed the maximum ongoing rates on two of its savings accounts by 0.10 percentage points, despite no change to the RBA cash rate since August.

• Progress Saver: Down from 3.15% p.a. to 3.05% p.a. (requires a $10+ deposit, no withdrawals, transfers, fees or charges during each calendar month)
• ANZ Plus Growth Saver: Reduced total bonus rate from 4.25% p.a. to 4.15% p.a. (requires balance growth by $100 or more, on top of any interest earned, each month)
• ANZ Plus Flex Saver: Interest on the first $5,000 is down from $4.25% p.a. to 4.15% p.a., while interest for every dollar over $5,000 is down from 1.25% p.a. to 1.15% p.a.

These moves signal that the Big Four bank may be positioning for another RBA cut. However, ANZ still expects the RBA to hold Australia’s official cash rate in November, and thinks the February meeting is the next plausible opportunity for a cut. Lowering savings rates now allows the bank to protect its margins ahead of that shift.

For customers, it’s another example of the loyalty trap at work: doing all the right things, only to earn less. For households juggling higher living costs, even small rate cuts matter. Savers should regularly compare their accounts as inertia is costing real money.

The loyalty trap – complacency costs

New rates and offers are constantly appearing, and you don’t want to be stuck paying a loyalty tax. Sticking with the same bank or insurer can potentially cost you – whether through lower savings returns, higher home loan rates, or outdated insurance policies.

Banks often reserve their sharpest mortgage deals for new customers. Base rates on some savings accounts can leave your money growing at a fraction of its potential if you don’t meet the monthly conditions. Neglecting to review your insurance could leave you paying more for equivalent cover and if circumstances change, you may require different protection.

The best way to beat the loyalty trap? Compare rates and costs regularly and switch when you find better value that meets your needs.

CBA under pressure over unfair fees

A majority of Australians want the Commonwealth Bank to refund millions in unfair bank fees, a new CHOICE poll reveals. Between 2019 and 2024, CBA charged low-income customers around $270 million in fees, many of whom were eligible for low-fee accounts.

While other major banks have reimbursed affected customers, CBA has so far refused, citing the varied financial circumstances of its clients. CHOICE’s head of policy, Morgan Campbell, said the stance disregards both public opinion and regulatory expectations.

The poll found 88% of respondents believe CBA should return the fees. Slightly fewer, 83%, think banks should automatically transfer eligible customers into no-fee or low-fee accounts to prevent unnecessary charges.

The spotlight remains on CBA as calls intensify for the bank to make amends.

Banking and insurance complaints stay high

The Australian Financial Complaints Authority’s (AFCA) Annual Review reported 100,745 disputes in the 2024-25 financial year, marking the second year in a row that AFCA has received over 100,000 complaints. 

While total complaints fell 4% from last year’s record, AFCA chief ombudsman David Locke said “more and more families are experiencing hardship due to cost-of-living pressures”. AFCA flagged ongoing distress caused by scams, despite a 45% fall in scam-related complaints.

Personal transaction accounts, motor vehicle insurance and credit cards were the most complained-about categories. Complaints about investments and advice jumped 18%, with self-managed super fund (SMSF) disputes up 95% and allegations of a “failure to act in the client’s best interest” rising 124%. General insurance complaints climbed 17%, largely due to issues with add-on insurance products.

The top three complaint issues were misleading product or service information related to add‑on insurance products; delays in insurance claims handling; and service quality concerns. Mr Locke said “persistently high volumes of complaints about general insurance demonstrates there is more to be done”, calling for stronger mandatory industry codes and tougher regulatory action.

More than $390 million in compensation and refunds were secured for consumers.

It’s clear that when it comes to finance, trust matters. That’s why the Mozo People’s Choice Awards are such a meaningful benchmark – the winners are chosen by everyday Australians.

Gen Z’s confidence hides a savings gap

New ING research paints Gen Z as ambitious investors but vulnerable savers. Nearly a quarter (24%) invest regularly and a similar amount (23%) juggle multiple income streams, but less than one fifth (19%) hold a three-month emergency savings fund.

Beyond their regular nine-to-fives, Gen Z Aussies are hustling harder than most, with more than one fourth (27%) funnelling money into shares and property. Almost a quarter (24%) invest consistently, and remarkably, the overwhelming majority (91%) have only started doing so within the past five years – a sign of just how quickly this generation is embracing wealth-building.

Their average savings of $16,475 trail far behind Millennials at $25,794, Gen X at $21,088 and Baby Boomers with $26,440. In fact, the majority of Gen Z Aussies have less than $10,000 in savings. Without a safety buffer, many could be forced to dip into investments or take on credit during a crisis.

The trend among younger investors to treat cash as an active part of their portfolio is also gaining traction. Data from CommSec shows that investors aged 18-24 are increasingly allocating funds to high-yield savings and term deposits, with allocations rising from 14-19% between 2023 and 2025. In response, CommSec launched a Notice Investor account this week.

Notice Saver accounts aren’t a new concept. Several banks offer customers the ability to earn higher interest in exchange for committing to a notice period before withdrawals. These accounts may appeal to those looking to boost savings while keeping some liquidity, making them a potential option for investors of all ages.

For those looking to build a stronger financial buffer, finding a savings account that offers a competitive interest rate can help grow savings faster. The table below highlights some of the leading savings rates currently available on Mozo’s database.

Leading savings rates on Mozo

Mozo’s guide to birthday freebies and discounts

We’ve rounded up ways to score instant savings through birthday freebies. From complimentary doughnuts at Krispy Kreme to vouchers at The Iconic, Kathmandu and Myer, there’s plenty on offer if you want to give yourself a gift.  

These perks typically require signing up to loyalty programs, trading a bit of data for tangible rewards. Just be selective – join the ones that actually deliver value, not just inbox clutter.