Mozo Money Moves: RBA likely to hold rates, still some home loan cuts, Gen Z investing in their future, and a superannuation wake-up call

Next Tuesday is Melbourne Cup Day. All eyes will be on “the race that stops the nation”, but the chances of the Reserve Bank of Australia (RBA) cutting the cash rate is a real long-shot. It's looking likely rates will remain “held in the gates” until 2026. 

Bad racing puns aside, some lenders decided to trim home loan rates this week, sweetening deals for borrowers, and dangling five-figure cashback incentives for first home buyers.

Meanwhile, new data highlights an emerging trend of Gen Z investors turning to high-risk options trading to offset cost-of-living pressures. Plus, ASIC steps in with fresh protections for crypto investors, Westpac reveals a $16 billion “buy local” opportunity, and Mozo analysis shows the steep cost of ignoring an underperforming super fund.

Interest rate outlook: hold your horses

Australia’s prices pulse quickened in the September quarter, with headline inflation rising 1.3% for the quarter and 3.2% annually, settling back above the RBA’s 2-3% target band.

Electricity costs surged 9.0% as state rebates in Queensland, Western Australia and Tasmania expired. Mozo’s Experts Choice Awards energy analysis shows that without the end of those rebates, prices would have climbed a more modest 4.8%.

Underlying inflation, which filters out volatile items, lifted to 3.0%, while unemployment ticked up to 4.5%, the highest it’s been since 2021, signalling a cooling jobs market.

With inflation rebounding and employment softening, the RBA faces a delicate balancing act ahead of next week’s Melbourne Cup Day meeting. Markets expect a hold, though most major banks now see the next rate cuts landing in early to mid-2026.

What do the Big Four economists say? Westpac tips cuts in May and August next year, ANZ in February, NAB in May, while CBA doesn’t expect any more at all this cycle.

Unloan beats RBA to the punch, drops mortgage rates

Online lender Unloan has trimmed its standard variable home loan rate by 0.05% p.a. to 5.19% p.a. (comparison rate* 5.10% p.a.), now one of the lowest variable rates on Mozo’s database.

Unloan’s 5 basis point cut applies to all of its variable owner occupier and investment loans, but there’s a catch – the lender says this rate reduction only applies to new customers

While the 5 basis-point move might seem modest (translating to around $14/month off a $500,000 loan over 25 years, and up to $4,417 in lifetime savings), it signals competitive intent as borrowers await the RBA’s next decision.

For anyone in the market or weighing a refinance, these rate drops are a reminder to compare current offers, especially since lenders may act quickly in advance of monetary policy announcements.

More home loan cuts this week...

In the variable market, G&C Mutual Bank led the moves, cutting rates by 0.20% to 0.35% per annum, with the biggest drop applied to some investor loans. Gateway Bank trimmed rates by up to 0.15% p.a., while Heritage Bank and People's Choice reduced multiple products by 0.10% p.a. The Bank of Queensland made smaller cuts of 0.05% p.a., according to Mozo's database.

Fixed rate reductions were less widespread. Summerland Bank offered the largest cut, slashing its one-year fixed rate by 0.20% p.a. Summerland Bank and IMB Bank also trimmed two- and three-year terms by 0.05% to 0.10% p.a., while NRMA Home Loans released new fixed rate offers.

*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.

Variable rate leaders on Mozo

Fixed rate leaders on Mozo

*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.

Term deposits: savers weigh RBA timing

The clock’s ticking for savers. With the Reserve Bank of Australia’s (RBA) next decision just around the corner, one question looms large: should you lock in a term deposit rate now, or wait to see what happens next?

Term deposit rates have been slipping since mid-2024, as inflation cools and the banks respond to RBA cuts. Term deposit rates typically move in line with the cash rate, so any change can affect what banks offer. That means your timing matters. Lock in now, and you’ll secure today’s high returns. Hold off, and you could miss out if the downward trend continues.

Instead of tying up all funds in a single long-term rate, laddering term deposits – splitting money across multiple terms – remains a smart defensive move. It keeps some savings accessible while locking in competitive returns on longer terms, preserving flexibility if conditions shift.

Leading term deposit rates on Mozo

Source: Mozo’s database. Rates accurate as at 31/10/2025, based on a $25,000 deposit.

Home loans: cashback offers & first home buyer deals

Lenders aren’t just cutting rates, they’re throwing serious cash at borrowers. The Mutual Bank recently rolled out one of the largest first home buyer incentives seen on Mozo in months, offering a $5,000 cashback on new loans of $500,000 or more.

The Budget Home Loan, a Mozo Experts Choice Awards Low Cost Home Loan winner three years running, comes with a variable rate of 5.19% p.a. (comparison rate* 5.19% p.a.) and is open to owner-occupiers with deposits as low as 5%. Applications close 30 November 2025, with settlement required by 30 April 2026 (T&Cs apply).

There’s nine lenders in Mozo’s database with cashback deals as high as $3,000, while Virgin Money is offering reward points just for paying your home loan on time each month.

*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.

Gen Z traders chase fast cash and future tech

Australia’s Gen Z investors are emerging as both the country’s most aggressive short-term traders and its most confident long-term optimists, pursuing quick wins today while betting on the technologies of tomorrow.

New data from Tiger Brokers Australia reveals just how active this generation has become:

• 66% jump in Gen Z sign-ups to the Tiger Trade app between FY24 and FY25
• 141% surge in options trading volumes – one of the highest-risk investment products
• 21-day average holding period for trades, far shorter than the typical 30-90 day window

The trend is strongest among casual workers, with hospitality staff making up nearly 10% of all Gen Z traders, well ahead of those in finance (4.9%) or accounting (3.7%). Tiger Brokers’ Cruz Li says the pattern reflects Gen Z’s appetite for “fast feedback and immediate results”, mirroring the instant-response culture of social media and gaming.

Yet despite their short-term trading streak, Gen Z investors remain remarkably upbeat about their financial futures. eToro’s Retail Investor Beat survey paints a picture of high confidence and future focus:

• Gen Z investors expect average annual returns of 12%, the highest of any age group
• They’re most drawn to high-growth sectors, led by technology (57%) and healthcare (46%)
• More than one-third plan to deepen their knowledge of AI-driven investment strategies

Together, the findings suggest a dual mindset: young Australians are embracing high-risk, short-cycle trading to offset cost-of-living pressures, while maintaining a long-term, tech-forward optimism that continues to define their generation’s money moves.

Mozo quiz: Are you driving blind on car insurance?

Mozo has come up with a quick interactive questionnaire to help Australians uncover common car insurance mistakes that could cost them thousands. The two-minute tool tests drivers on key cover details – from agreed versus market value to excess options and policy exclusions – revealing just how well they understand their protection. 

Mozo’s research shows many motorists assume they’re fully covered, only to find gaps when it’s too late. The quiz aims to boost car insurance literacy ahead of renewal season, encouraging Aussies to review their policies and avoid costly surprises.

Crypto crackdown: ASIC moves to protect investors

The Australian Securities and Investments Commission (ASIC) has updated its guidance on digital assets , finally bringing many crypto products under financial services law.

Stablecoins, wrapped tokens and digital wallets will now be treated as financial products, meaning providers must hold an Australian Financial Services Licence (AFSL) and join the Australian Financial Complaints Authority (AFCA) by June 2026.

The move closes long-standing gaps in consumer protection, ensuring investors have access to independent dispute resolution. ASIC has also made it clear that high-risk crypto products, like lending or derivative schemes, remain off-limits for now.

Aussies urged to ‘buy local’ ahead of Black Friday

One of Australia's Big Four banks, Westpac, is sending a strong message to Aussie consumers: simple tweaks to how households spend their money could deliver major economic lift – just in time for the looming Black Friday-Cyber Monday spending surge.

According to Westpac’s modelling :

• Redirecting $100 per week of household spend to Australian businesses could inject around $16 billion into the economy and generate an estimated 38,000 jobs.
• The boost would flow most strongly into sectors already under pressure: retail, manufacturing and hospitality, the very industries battling cost-of-living stress and casual employment.
• Over one-third of the gains would accrue to small and medium enterprises (SMEs), meaning local business stands to benefit directly.

At the same time, Westpac’s data division is forecasting a record-breaking spending period for the upcoming Black Friday and Cyber Monday events . The bank warns that while consumers may chase bargains online, much of that spend is already shifting overseas. This means the “buy local” message is even more urgent.

The two themes converge into a clear opportunity for Australians: You don’t necessarily have to spend more, but you can spend differently. By consciously choosing local suppliers and businesses during what is historically the biggest retail blitz of the year, the collective effect can ripple across the economy while supporting jobs and local business resilience.

For Mozo readers looking to make smart money moves, the takeaway is clear: keep your week-to-week spending manageable, but consider whether your money can do more locally, particularly ahead of the pre-Christmas bargain season.

Super wake-up call: the cost of doing nothing

Australians receiving a ‘super performance notice’ should take it seriously. These letters are issued to members whose MySuper funds have failed the government’s annual performance test, which is a clear sign it’s time to compare options.

Mozo senior writer Brad Buzzard interviewed one of our colleagues after she mentioned she’d once received a letter from her super fund admitting her investment option was a dud. 

After ignoring the initial correspondence, Emma eventually realised her nest egg was shrinking. In a cost-of-living climate, that’s money most Australians can’t afford to ignore. She compared and switched funds, feeling a sense of relief. As she described it, “Like I was finally in control”.

When’s the last time you checked that your superannuation fund and investment strategy were aligned with your financial goals?

Travel and lifestyle: risky business abroad

Despite repeated warnings, one in seven Australians still travel overseas without insurance, according to new survey data from the Insurance Council of Australia and DFAT.

Many say they skip cover because they feel they’ll be safe or the trip is short but real-world claims tell a different story. From $1,500 for local treatments to a $187,000 medical evacuation, avoiding the relatively low upfront cost of travel insurance can end up being one of the priciest financial mistakes a traveller can make.

2026’s ultimate holiday hack

Looking to stretch your annual leave next year? Mozo shows how to turn 19 days of leave into 41 days off by pairing leave days with public holidays.

For example, taking seven days off around Christmas and New Year can deliver a 16-day break from 20 December 2025 to 4 January 2026. It’s one more way you can make the most of limited resources, whether money or time.