Mozo Money Moves: Fixed rates fall below 5%, term deposits tumble, NAB offer a game changer for first-home buyers and more

Welcome to Mozo Money Moves, your essential guide to navigating the world of personal finance. This week, there's plenty to discover. We've seen some cracking action in the home loan market, with a major lender slicing fixed rates below the 5% mark, which could be a real boon if you're looking for certainty in your repayments. On the flip side, savers might be feeling a bit of a pinch as term deposit rates continue their slide, forcing a rethink on where to stash your cash.

But it's not all about rates! We're also diving into a massive win for first-home buyers, as one of the big banks makes a significant tweak to how student debt impacts borrowing power – potentially unlocking the property dream for many. Plus, we're unpacking why so many young Aussies are struggling to get proper financial advice and turning to social media instead. Grab a cuppa and let's get into the details of what's moving your money this week.

Greater Bank undercuts rivals with sub-5% fixed rate

While many lenders are keeping fixed home loan rates above the 5 percent threshold, Greater Bank has thrown a curveball – offering a 2-year fixed home loan at just 4.94% p.a. (7.07% comparison rate*). That positions it among the most competitive short-term fixed rates on Mozo’s database.

Greater Bank’s new lowest fixed rates (Ultimate Home Loan)

Source: Mozo database. Fixed rates for owner occupier, principal and interest home loans, for new loans borrowing more than $150,000 with an LVR 80% or below. Accurate as at 25 July, 2025.

For borrowers frustrated by rising variable rates and cautious about where the Reserve Bank of Australia (RBA) is headed next, these fixed offers could be a game changer. A short-term locked rate lets you hedge against potential future interest increases, while staying nimble if rates continue to fall further in 2026/27.

However, it’s not a set-and-forget solution. After the fixed period ends, the rate reverts to Greater Bank’s variable offering – which may be higher, depending on market movements. It’s crucial to factor in your refinancing plans or switching strategy before the fixed term expires.

Still, for borrowers looking to reset their budget or first-home buyers needing certainty in year one, Greater Bank’s sharp fixed rate could offer just the right buffer.

Standout product changes this week

Fixed rate home loans

Australian Military Bank led the charge with sharp cuts across multiple fixed-rate home loan options, while other lenders like Bank of China, Greater Bank, and P&N Bank also made notable adjustments to fixed-rate and interest-only rates.

Source: Mozo database. Selected fixed rate changes from 22nd to 25th July, 2025. Eligibility requirements may apply.

*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 repayments for $150,000 over 25 years. Comparison rates for fixed interest only loans are based on an initial interest only period equal in terms to the fixed period.

Credit cards

ANZ improved its sign-up offer for rewards seekers, increasing the bonus points on its flagship Rewards Black card from 110,000 to 130,000 points, including $100 cashback. Terms and conditions apply.

Term deposit rates tumble: what now for savers?

The term deposit honeymoon may be over. After a prolonged period of rising returns, the recent cash rate cuts have sparked a cycle of lower interest terms. According to fresh Mozo data, average yields across all terms in Mozo’s database have now slipped below 4%. 

So, what’s causing the slide? With inflation easing and markets pricing in the potential for further rate cuts, banks may be recalibrating their funding strategies. In plain terms: they no longer need to pay quite as much to attract deposits.

For savers, the drop could mean now’s the time to act or rethink your strategy altogether. Locking in a longer term while some high rates still linger might offer short-term certainty, but it’s not your only option. A laddering approach – spreading your money across different term lengths – can help maintain flexibility while still earning a decent return. Alternatively, with some high-interest savings accounts still hovering near or above 5 percent, you may find value in keeping things liquid, especially if you're expecting more cash rate cuts down the track.

AMP Bank GO: no-conditions high interest savings

Tired of jumping through hoops to earn bonus interest? AMP Bank’s latest move might interest you. The bank’s new Save account offers a highly competitive 4.50% p.a. ongoing interest rate and there are no deposit requirements, no transaction hurdles, and no monthly balance conditions.

That’s a rare combination in the current market. Most of the leading savings accounts demand consistent deposits, multiple card transactions, or minimum monthly balances. AMP’s new account strips all that back, offering a streamlined product that prioritises simplicity.

Business customers can also cash in, with 4.20% p.a. on the same balance tier.

There is a slight catch: the top rate is only available for new customers on balances up to $250,000. Still, for those juggling multiple accounts or wanting a fuss-free place to park their emergency savings, this could be a smart pick. It's also worth noting that this launch comes just weeks after other providers trimmed their bonus rates, suggesting AMP is making a serious push to attract savers.

AMP Bank’s new app focuses on what most people need day to day. Learn more here.

5 savvy savings tricks to ease your weekly spending

In a cost-of-living crunch, saving money often comes second to surviving the weekly grocery shop. But smart, low-effort tweaks can still make a difference. Mozo dives into five practical ways to get ahead without making big sacrifices.

One of the top tactics? Creating a dedicated “bargain bucket” savings account and funnelling the money you save from everyday discounts, loyalty programs, or free trials directly into it. For example, if you get $10 off your weekly shop thanks to a rewards app, pop that $10 into your bucket – perhaps a non-conditional high interest savings account. 

Over time, these micro-savings compound – and unlike leaving it in your everyday account, it’s less likely to be spent impulsively.

Other tips include automating your finances, using tap-to-save tools offered by AI and select banks, and leaning into free or subsidised community services. If you’re disciplined, you could also lock in a portion of your savings into a short-term term deposit to prevent it from getting spent. Even with rates slightly on the decline, a fixed return can offer peace of mind.

NAB makes game-changing move for first-home buyers

Good news, aspiring homeowners! If you've been stressing about how your student loan might impact your borrowing power for a home loan, NAB just made a significant change to their home loans policy.

From 31 July 2025, if your HELP debt is $20,000 or less, NAB won't factor it into their home loan assessment. That's right – your existing study debt will not impact calculations when the bank is determining how much you can afford to borrow.

This is a massive win, especially for first-home buyers. It means more graduates could see a boost in borrowing power, potentially helping them to:

• gain access to the property market sooner and/or;
• afford a home that better fits their needs (e.g. extra bedrooms, more space).

More lenders may adopt similar policies going forward following APRA’s advice to all authorised deposit-taking institutions regarding the treatment of HELP debt obligations.

Ditching TikTok for real talk: why young Aussies can't get financial advice

New research from the Council of Australian Life Insurers (CALI) found nearly half (49%) of all young Aussies (aged 18-34) want proper financial advice, especially on things like life insurance. But guess what? Only one in ten actually gets it. What gives?

Turns out, there’s a huge "advice gap." These are motivated folks hitting big life moments – maybe buying a house, or a health scare makes them think about the future. They're not after basic info; they want personalised insights, like "how much insurance do I really need?"

When they can't get real advice, they're stuck crowdsourcing it from friends, dodgy online forums, or even social media platforms like TikTok or YouTube. CALI's CEO Christine Cupitt says these sources are, "not always accurate, tailored or in their best interests".

To make things worse, tough rules on financial advisors have shrunk the expert pool and bumped up costs. It's a lose-lose.

So what’s the good news? Financial advisors are recognising the demand from young people and CALI is pushing the government to let a "new class of adviser" step in and offer basic, no-fuss insurance advice. The overwhelming majority (82%) expect life insurance to make up a greater share of their business over the next five years.

In December 2024, the Federal Government committed to reforming its framework to allow life insurers to offer straightforward advice when customers seek it, at no extra cost.

As Cupitt puts it, "Younger Australians deserve support... to have peace of mind about their future." It's time to bridge this gap, so young people can actually build a secure financial future.