Mozo Live: Mortgage lender rankings, a rise in new home loans, buyers head to outer suburbs

Good morning and welcome back to our running coverage of interest rates, banking and personal finance!

Today, Proptrack reports that increasing property prices have pushed many Aussie buyers, especially first-home buyers, to expand their search further out.

This typically means looking at 'outer-rim' suburbs, usually 25 or 30 kilometres from a city’s CBD.

Recent data shows there are indeed suburbs in each capital with houses once below median value that have seen incredible price growth in the past year (to February) - indicating surging buyer interest.  

For example, in Sydney, where the median house price recently hit $1.425 million largely due its homes within the 20 kilometre mark, Fairfield has gained new popularity.

Fairfield is 30 kilometres west of the CBD and yet its median price rose by 23% to $1.155m (year on year), says Proptrack.

Similarly, house prices in Mardi, Tallawong and Green Valley also increased by more than 20% in the past year.  

Melbourne had some similar price jumps, including in Cranbourne South, which is 49 kilometres from the CBD. House prices there rose by 10.5% to $828,500 in the year to February.

The approach of looking beyond inner-ring suburbs is not a new one. However, more homebuyers are clearly refocusing their efforts on areas that haven’t been as heavily impacted by inflated buyer demand. 

A better price also usually means a more manageable home loan. You can start comparing some of the top home loans in our database right here - check out our Home Loans hub page.

New home loans funded across Australia increased by 18% in the December quarter of 2024 to $179bn compared to $153bn in the same period of 2023, according to the latest data from APRA.

New owner-occupier loans held steady at 67% of the total and investment loans made up about 30%.  

Interestingly, new home loans with an 80% loan-to-value ratio also held at about 31% of the total. 

LVRs of 80% have typically been the standard across Australia, although in recent years as property prices have escalated, some lenders have offered higher LVRs of 90%.

The latest data shows that the average owner-occupier mortgage in Australia is $642,121, as per the Australian Bureau of Statistics (ABS) in September 2024.

This represents a 7% annual increase on the prior year. 

In fact, the average mortgage in Australia grew 74% over the past decade according to data from the ABS' Lending Indicators released in September 2024.

Of course home loan amounts are usually different by state, with NSW, Victoria and Queensland loans typically much higher than in the other states and territories. 

For example, the average loan size in NSW has risen from $780,000 in the September quarter of last year, up to $811,000 as of December, as per ABS data.

Getting into property? You can easily compare home loans right here at Mozo. 

Okay, that's all for today, thanks for joining us. Check back in tomorrow for more live blog coverage of all things interest rates, home loans, savings and more!

Bendigo Bank leads the competition in customer satisfaction among home loan customers, with an impressive rating of 87.7%, according to Roy Morgan’s latest satisfaction survey.

This high score is largely due to its strong focus on customer service.

ING followed in second place at 83% satisfaction, praised for its low fees and competitive interest rates.

Macquarie ranked third at 82.9%, also benefiting from similar strengths in fees and rates.

Suncorp Bank saw the biggest improvement, rising 5% to 79%. It's another bank strongly associated with good customer service. 

Bankwest experienced the largest drop in satisfaction though, falling 17% to 72%, following the closure of its branches in Western Australia.

Overall, customer satisfaction among Australia’s top banks declined slightly to 73.7% in late 2024, down 0.6% from the previous year (six months to December 2023).

Roy Morgan general manager of financial services, Suela Qemal says the current level of home loan customer satisfaction is almost identical to that in December 2019 (74%), immediately prior to the pandemic.

"While home loan customer satisfaction across the top banks peaked in the six months to February 2021 at 80% coinciding with mortgage holidays, it soon began to drift downwards as mortgage repayments resumed for hundreds of thousands of borrowers," Qemal said. "Since early 2022 there has been the additional impost of rising interest rates."

If you're not so satisfied with your bank and perhaps thinking about a home loan switch, why not compare some of the best loans in our database on our Home Loans hub page.

ANZ has made significant cuts to its savings account interest rates, with changes taking effect from today (17 March 2025). The biggest hit comes to the ANZ Online Saver, where the introductory bonus rate of 2.25% p.a. has been completely removed.

This means new customers will no longer receive a boosted rate for the first few months, leaving the total maximum interest rate on the account at just 1.15% p.a. – a steep drop from the previous 3.40% p.a.

Meanwhile, ANZ’s Progress Saver account has also seen a slight reduction in interest, with its maximum rate dropping 0.10%, bringing the new rate to 3.75% p.a. for qualifying customers.

What this means for savers

• If you were relying on ANZ’s Online Saver intro rate, that advantage is gone.
• The base rate remains 1.15% p.a., meaning no extra bonus for new sign-ups.
• Progress Saver's still earn a higher rate but need to meet certain conditions.

The average savings account interest rate on Mozo’s database is 3.40% p.a., meaning ANZ’s Online Saver now lags behind many of its competitors, making it a good time for Aussies to weigh up their options.

Searching for a better deal? Compare rates, fees and features of some of Australia's leading savings accounts to help you grow your money.

Sláinte and Happy St. Patrick's Day! Welcome to Mozo's live coverage of everything interest rates! Join us as we dive into this week's news.

The latest Westpac Weekly report gives us a look at what's shaping Australia's economy right now. Here are the biggest takeaways:

Jobs and the labour market

• Australia's job scene is shifting as the post-pandemic population boom slows down, meaning we might not need as much employment growth to keep up.
• The care sector (aged care, disability support, early childhood education, etc), which has been propping up employment, is settling back to normal, so we could see job growth ease off a bit.
• The unemployment rate is expected to hover around 4 per cent, but there might be some ups and downs as the job market finds its balance.

Consumer confidence and spending

• Good news! Aussie consumer confidence is on the rise. The Westpac-Melbourne Institute Consumer Sentiment Index jumped 4 per cent in March.
• Lower cost-of-living pressures and the RBA’s recent interest rate cut have helped Aussies feel a bit more optimistic about their finances.
• But on the flip side, business confidence isn’t quite as upbeat – profits and trading conditions are still looking a bit shaky.

Global trade tensions and what it means for Australia

• The US is still making waves with its trade policies, and Australia's feeling the ripples. Trump’s new trade tariffs are likely to push up prices while slowing down global growth.
• China’s response to these tariffs will be crucial – if they ramp up domestic spending, it could help soften the blow for Aussie exports.
• Westpac reckons these trade issues will play a big role in shaping future interest rate decisions, both here and overseas.

Interest rates and inflation

• Inflation is cooling off, which is good news, but it’s still something to keep an eye on, particularly within the context of the global trade wars.
• Westpac expects the RBA to take a slow and steady approach to cutting rates – so don’t expect big changes overnight.
• With household incomes set to rise thanks to tax cuts and falling inflation, we could see a bit more spending in the economy.

Looking ahead

• Growth in real household incomes could give spending a boost, but slowing population growth might put a lid on overall economic expansion.
• Businesses are staying cautious, especially with all the global uncertainty around trade and politics.
• While things are improving, it’s not all smooth sailing – there’s still plenty to keep an eye on in the months ahead.

At Mozo, we help Aussies make smarter financial decisions by comparing some of the top personal finance products on the market. Whether you're looking for a high-interest savings account, a competitive home loan, or a low-fee bank account, we've got you covered. Check out our comparisons pages to find the best option for your money moves.