Mozo Money Moves: Borrowers win this round – as rates starting with 5 return – but the RBA won’t show its hand.

Welcome back to Mozo Money Moves, where each week we bring you the latest insights in personal finance. This week we’re diving into how 49 lenders have now passed on the recent Reserve Bank of Australia (RBA) rate cut, and the competitive home loan rates on offer. 

We also look at how 77 banks have trimmed savings rates and the hidden costs for savers who don't meet conditions, how term deposit  rates have been slashed both before and after the cut and the RBA’s reasoning behind last month’s cut.

Plus, we highlight the best international money transfers of 2025, as announced by Mozo this week as part of the Mozo Experts Choice Awards 2025.

49 lenders cut variable home loan rates

Just over two weeks after the RBA delivered the first cash rate cut in over four years, the vast majority of home loan lenders have now followed suit. 

This week alone (3 - 7 March 2025), 49 lenders reduced their variable home loan rates, bringing the total number of lenders making variable rate cuts to 82 since the RBA cut on February 18 2025. Westpac became the last of the Big Four banks to pass on the cuts to borrowers on Tuesday, along with Westpac’s regional brands.

So which Big Four bank is now boasting the lowest variable rate for a $400,000 loan with principal and interest repayments and <80% LVR in the Mozo database? 

ANZ Plus offers the lowest variable rate at 5.84% p.a. (5.85% comparison rate*), but it's only available for refinancing, excluding ANZ and Suncorp customers. Next is CommBank with a rate of 5.94% p.a. (6.07% comparison rate*), but it's also limited to online refinancers.

Only 5 lenders have yet to cut rates or announce whether they’ll pass on the full cut to existing customers; FreedomLend, Reduce Home Loans and Mortgage House.

“The majority of lenders have done the right thing and passed on the cut in full to existing borrowers after the RBA move,” says Rachel Wastell, Mozo’s money expert. 

“But for the three lenders still holding out, the question is: what’s the holdup?” 

Mozo has been tracking these cuts, and whether they match the RBA move in the Mozo RBA Rate Match Table. However, for those wanting to learn a little more about each lenders’ move, the editorial team has running commentary on Mozo Live to cover the latest interest rate changes in more depth.

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Virgin Money only lender not to pass on the cut

Virgin Money is the only lender thus far to confirm they will not be passing this onto mortgage holders. Mozo reached out to Virgin Money for comment, who have responded with the following:

"Our rate decisions are well considered ensuring that we provide our customers with a competitive proposition aligned with our funding costs and the needs of all our stakeholders. Virgin Money home loans are competitive and remain aligned with [the] market.”

“For any customers concerned about their current financial situation, we encourage you to reach out to our dedicated teams who are here to listen and provide support. Having these conversations early can help us explore support options best suited to your needs."

According to Mozo’s database, Virgin Money does have a very competitive savings rate. Virgin Money’s Boost savings account has the second highest rate of 5.30%p.a. 

However, its lowest variable rate home loan on the Mozo database across all LVRs is 6.44%p.a. (6.58% p.a. comparison rate*). Before the cuts, some smaller lenders like MOVE Bank, HomeLoans360 and Pacific Mortgage Group were offering rates starting with 5, and they have not held off passing on the cut for mortgage holders (regardless of having already competitive rates). 

So, it will be interesting to see how this plays out when it comes to Virgin Money’s acquisition of new customers in such a competitive home loan market. 

“Aussie mortgage holders should be watching closely and considering whether it's time to shop around to see if they could get a better deal elsewhere,” stresses Wastell. “In this new rate cutting environment, a rate starting with 6 requires a review.”

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

237 home loan rates starting with 5

After the flurry of cuts, the Mozo database has been flooded with variable home loan rates starting with 5. In January there were just over a dozen lenders offering rates below 6.00% p.a., but this number has now skyrocketed to 71.

As of today, the Mozo database holds 237 home loan rates for owner occupiers making principal and interest repayment starting with 5, across all loan-to-value ratio (LVR) tiers and loan amounts.

“This is the moment many mortgage holders have been waiting for,” says Wastell. “We haven’t seen this many home loan rates starting with a 5 for a long time, and for borrowers who’ve been stuck paying upwards of 6% or even 7%, this is a wake up call.” 

“Loyalty in banking rarely pays, and home loans are no exception. A 0.50% difference in your rate might not sound like much, but on a $500,000 mortgage, that’s thousands of dollars in savings over the life of your loan.” 

“Borrowers need to take advantage of this to compare rates and  negotiate with their lender. Don’t be afraid to switch if you find a better deal.”

Top 5 Variable Home Loan Rates

77 banks cut savings rates

When it comes to savings rates on ‘at call’ accounts, (online savings accounts that can be accessed at any time) 77 banks have made cuts to savings rates since the RBA cut the cash rate to 4.10%.

Most have passed on the standard 25 bps cut to mirror the RBA’s move, however the way in which this 25 bps cut has been applied to various savings accounts and rates differs.

As we reported last week, there have been a few banks that are keeping headline rates higher and slashing the “base rates” (the rates of interest that these accounts revert to if bonus conditions are not met) by more than 25 bps, which means savers who don’t check they’re meeting conditions should be wary.

“With 77 banks trimming their savings rates, it’s more important than ever for savers to stay on top of the fine print,” stresses Wastell.

“While some are passing on the RBA's cut as expected, others are reducing base rates more significantly, meaning you could earn far less if you're not meeting the required conditions.” 

The leading bonus rate on the Mozo database is 5.40%p.a. from ING, though this has a base rate of 0.05%p.a if conditions are not met. The leading unconditional savings rate however, from Australian Unity is 4.85%.

Looking at a savings balance of $10,000 (with no additional deposits made over a year) the difference between the annual interest earned for a 5.40%p.a. rate ($554) versus a 4.85%p.a. Rate ($496) is $58. However, the difference between the annual interest earned on a 4.85%p.a. rate ($496) and a 0.05%p.a. rate ($5) is a whopping $491. 

"The difference between a high headline rate and a low base rate can equate to hundreds of dollars if you don’t meet conditions, so it’s crucial to regularly review your savings account terms”. 

“Things like keeping all your savings in the account, meeting monthly deposit requirements, and making the necessary number of transactions can all have a big impact on the interest you earn."

Top At Call Savings Rates

266 term deposit cuts follow the RBA move

In the first seven days of March, term deposits have been slashed, with 67 cuts across various terms, compared to just 1 increase. This follows on from a whopping 293 cuts to term deposit rates in February, and 15 increases.

The majority of these cuts came after the RBA decision to cut the cash rate on February 18, which resulted in a whopping 265 cuts to term deposit rates, with a focus on terms of 1 year or less. 

However, it's important to note that many providers had already started slashing term deposit rates ahead of the RBA's move, anticipating the rate change to better protect their margins.

Term deposit rates are fixed rates of interest, so often the banks adjust these rates in advance to ensure they aren't locked into paying a higher rate of interest than necessary. In fact, looking at January and February before the RBA’s cut, 138 term deposit rates were reduced in anticipation of the move.

The Big Four banks previously reduced rates in preparation for the cut, which means they have not cut term deposit rates any further since the RBA moved.

"If you’re a saver with a term deposit that’s expiring, it's time to take a closer look at your options, and if you're sitting on a Big Four rate starting with a 3 you're missing out,” explains Wastell.

“To make your money work harder for you, you might want to consider looking to specialists like Judo Bank or Heartland Bank, where you'll find rates that are much more competitive.” 

“Don’t settle for convenience or comfort when a switch to the leaders in the market could help you earn much more." 

Leading Term Deposit Rates

RBA explains why they cut, but offer no guarantees of more

On Tuesday, the RBA released the minutes from the monetary policy meeting that gave borrowers the relief they have been waiting for since the rate hiking cycle began in May 2022. 

The minutes were hawkish (in simple terms that means they expressed caution) and hinted that rate hikes could still be a possibility if inflation proves more persistent than expected.

“It would be reasonable to maintain a more restrictive stance of policy by holding the cash rate at 4.1 per cent for an extended period – given members’ assessment that this level would still be restrictive,” the minutes state, “or by even tightening policy if the outlook was for inflation to rise materially.”

This means that the RBA is considering whether to keep the cash rate steady for an extended period, believing it might be restrictive enough to control inflation. However, they are also acknowledging that if inflation is expected to rise significantly, they could decide to increase the cash rate further (tighten policy) to prevent that from happening.

As Senior money writer Peter Terlato commented in Mozo Live on Wednesday, “this signals that while borrowers and investors may be anticipating more rate cuts in 2025, there is no guarantee the easing cycle will continue.”

Wastell agrees. “With no guarantee of further cuts from the central bank, homeowners should be comparing their options and making smart moves now, while competition is hot,” she says.

“If your home loan rate still starts with a 6 – shop around. Don’t wait for another rate cut from the RBA that isn’t guaranteed if you can give yourself one now.”

Mozo reveals the best overseas money transfers in 2025

On Thursday, Mozo was excited to announce the winners of the Mozo Experts Choice Awards, highlighting the best International Money Transfers of 2025.

Mozo experts analysed 504 quotes from 28 overseas money transfer services to find out which providers offer Aussie consumers the best value when sending money overseas in USD, GBP and EUR. 

“With more Australians transferring money overseas, we want to make it easier for consumers to compare providers and ensure they’re getting the best deal,”  says AJ Duncanson, Data Director and Mozo Experts Choice Awards Judge.

"Transfer services charge different percentage-based fees, while some also have flat fees. Our experts assessed all of the different exchange rates, margins and fees at the time of the analysis to calculate conversion amounts."

“This rigorous process was conducted using over 500 quotes to identify the providers offering the biggest potential savings.”

Experts compared quotes of $5,000 and $20,000 AUD, transferred into USD, GBP and EUR via 28 different international money transfer services, to find the industry leaders in value. 

CurrencyFair, Remitly, Wise and Xe were highlighted as the standout non-bank providers, and HSBC was awarded the sole winner of the bank category.

Mozo analysis reveals that on average Mozo winners could help Aussie consumers save up to 5.9% more than the most expensive provider on transfers of $5000 AUD.

Looking at a $5,000 AUD transfer, Mozo found that consumers could save $156 (USD), £160 (GBP) or €156 (EUR) by opting for a Mozo winner.

Check out the full winners list here or read the media release.

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As a part of Mozo’s commitment to making your money count for more, each month we “roundup” the rate changes, key banking trends and money moves in the Australian personal finance market. 

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