Mozo Live: Home building costs ease, possibility of recession and NAB helps out NSW storm victims

Today’s blog is now closed. You can follow more banking news and interest rate updates on our latest live blog.

NAB is offering financial relief to customers in New South Wales affected by the recent severe storms. This includes $1,000 Disaster Relief Grants, loan deferrals, reduced repayment arrangements, and hardship support.

“We are here to help the families, communities and businesses in the local government area of Narrabri who have been affected,” NAB executive retail for New South Wales, Tony Story says.

Specific assistance may include:

• Loan deferral or reduced repayment arrangements for home, personal and some business loans.
• Extra care for customers struggling to make minimum monthly payments on personal loans, home loans or credit cards.
• Deferring upcoming credit card payments.
• Waiving and/or refunding fees and charges, including merchant terminal fees and early access fees to term deposits.

If you’ve been affected by the storms, you’re encouraged to visit Natural Disaster Relief and Support section of the NAB website, or by calling one of the following numbers:

• Individuals: 1300 308 132 Mon-Fri, 8:00am to 7:00pm AEDT.
• Businesses: 1300 769 650 Mon – Fri, 8:00am to 5:00pm AEDT.

Grants for impacted customers will remain open until 2 May 2025, and all enquiries will be assessed on a case-by-case basis.

Another way to protect your home in the future is by finding the right insurance for your home. Our in-house experts help readers choose financial products such as home insurance. So if you're thinking of switching providers, be sure to check out our hub page where you can compare dozens of options.

That does it for today’s news. Tune back in tomorrow for more real-time coverage of interest rates, banking and personal finance news!

Australians have weathered a raft of economic shocks in recent years – from a pandemic to surging inflation and rapid rate hikes – and newly imposed US tariffs may cause further economic harm and a trade war.

With talks of a global recession, it’s smart for Aussies to take action now. Mozo outlines several practical steps to strengthen your finances:

• Build your emergency fund – Aim for at least 3-6 months’ worth of expenses in a high-interest savings account to prep for possible employment risks.
• Watch interest rate moves – If the RBA keeps cutting rates, borrowers with variable loans may benefit. Consider refinancing or negotiating a better deal.
• Diversify your income – A side hustle, freelance gig, or part-time project can provide extra cash flow if your main job is affected by reduced hours.
• Reassess investments – A more conservative investment strategy may suit volatile economic conditions. Speak with a financial advisor to manage risk.
• Stay informed – Economic conditions can shift quickly. Keep up to date with finance news and the latest interest rate changes – adjust plans as needed.

Making smart money moves now can help future-proof your finances.

*Term deposits are a great option if you’re looking to secure some current interest rates before rate cuts. But with economic uncertainty, opting for a short term option might be the right balance if you’re thinking of grabbing current rates.

So who are the current leaders in term deposits over a shorter time horizon?

Heartland Bank currently has the highest short-term deposit rate on our database, offering the most attractive rates across multiple terms. It leads with 4.90% p.a. for 1 year terms, while G&C Mutual Bank, Gateway Bank, and Unity Bank follow at 4.65% p.a.

For shorter commitments, Heartland also tops the charts with 4.95% p.a. for 9 month terms and 4.89% p.a. for 6 month terms. 

Credit Union SA and Gateway Bank offer 9 month rates at 4.75% p.a., while Bank of Sydney, Credit Union SA, and Gateway Bank closely trail the 6 month leader at 4.85% p.a.

Other sub-annual term leaders include Bank of Us in the 10 and 11-month terms, offering 4.65% p.a. for both.

Why consider short-term deposits now?

With economic uncertainty and inflation fears in light of tariffs, short-term deposit options present themselves as a potential option for savers. Locking in cash for shorter periods allows you to take advantage of rate drops while also not keeping cash on ice should rates increase. 

Looking to get started on your saving journey? Compare some of the leading rates on our Term Deposits hub page.

* Just remember that there are conditions such as minimum deposit amounts, which may vary between account

In what appears to be positive news for homebuyers, residential construction costs grew just 0.4% nationally over the March quarter, the lowest quarterly increase since March 2010, according to CoreLogic's latest Cordell Construction Cost Index (CCCI).

This generally means it costs less to build new homes than before.

This slowdown brings the annual rise to 2.9% over the 12 months to March 2025—down from 3.4% in December 2024. 

"The growth in residential construction costs has clearly slowed significantly," said research director for Cotality,” Tim Lawless.

Pandemic-level inflation eases in property

Since the pandemic five years ago, construction costs have jumped 31%, creating challenges for the industry, Cotality said. 

Just last year, the AFR reported that housing inflation remained a major pressure point, with building cost inflation entrenched at 5% and cumulative increases reaching 37% since the pandemic. 

Brisbane-based builder, Stephen Havas described witnessing "an exponential rise in the cost of new construction.”

However, costs are now tracking below the pre-COVID decade average of 4.0% since the September quarter of 2023. This moderation coincides with rising property values, which increased 0.4% in March—the second consecutive month of growth.

Across states, Queensland led with a 0.6% quarterly rise, followed by Western Australia (0.5%), New South Wales (0.4%), and Victoria and South Australia (both 0.3%).

With construction costs slowing and property values still rising (Cotality and Proptrack property values in Sydney increased during February, following the initial cut in interest rates.), market conditions may still be favourable for new home construction. 

If you're in the market for a home, it's time to do some home loan research. Here at Mozo, you can compare some of the leading lender rates in our database to start with.