Mozo Money Moves: Aussies travel uninsured, Big 4 leads in fixed + DIY Rate cuts worth more than an RBA move
From shifting home loan rates to key financial reports, we’re back to cover the money moves that shaped the week at Mozo—and what they mean for your wallet.
This week, there were a number of rate reductions on home loans - with a focus on fixed rates - and some term deposit adjustments, which revealed a few key trends emerging in the lending and deposit spaces.
It was also a huge week of number crunching at Mozo, as we released two research reports covering costs and savings available for travellers and mortgage holders, and announced the Best Home Loans in Australia after reviewing 444 home loans.
Let’s get into it!
Westpac Breaks Ranks on Fixed Rates
The most significant changes to home loans overall this week were observed in fixed-rate home loans, particularly for the 2-5 year terms for both owner-occupiers and investors. Lenders including Bank of Queensland, ME, AMP Bank, Westpac and Westpac’s regional brands cut fixed rate home loans between 10 and 40 bps for owner-occupiers and 10bps to 35 bps for investors. Lower loan-to-value ratio tiers received bigger reductions, as banks continue to try to secure lower risk borrowers with attractive rates starting with 5.
On Wednesday, Westpac shook up the fixed-rate home loan market by jumping to the top of the 1-year fixed rate leaderboard alongside Macquarie. In a surprising move for a Big Four bank, Westpac is now offering borrowers with an LVR <70% a competitive 5.69% p.a. fixed rate (7.60% p.a.comparison rate*).
“Westpac’s cut this morning has propelled it to the top of the 1 year fixed rate leaderboard next to Macquarie, which is an unusual move for a Big Four bank,” said Mozo Banking and Rates Expert Peter Marshall.
“It’s rare to see one of the majors offering one of the most competitive fixed rates on the market, but this shift signals growing competition in the home loan space – which does often happen ahead of a rate cut.”
The bold move came just a week after NAB became the first major bank to cut fixed mortgage rates in 2025, trimming up to 0.25 percentage points off owner-occupier loans. However, NAB’s lowest rate is still above 6%.
| Lender | Home Loan | 1 Year Fixed Rate (p.a.) | Comparison Rate* (p.a.) | 2025 Change |
|---|---|---|---|---|
| Westpac | Fixed Options Home Loan (<70% LVR, Premier Advantage Package) | 5.69% | 7.60% | -0.40% |
| NAB | Tailored Fixed Rate (<80% LVR) | 6.09% | 6.98% | -0.25% |
| ANZ | Fixed Rate Home Loan (<80% LVR) | 6.14% | 7.13% | n/a |
| Commonwealth Bank | Fixed Rate Home Loan (Wealth Package) (<95% LVR) | 6.39% | 8.27% | n/a |
| source: mozo.com.au as at 12 February 2024, best available Big Four Bank 1-year fixed rates for owner occupier, principal & interest home loans at $500,000. All LVRS. | ||||
*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.
Variable rate changes minimal
In the variable rate space, moves were minimal ahead of the RBA decision. Regional Australia Bank shaved between 8bps and 14 bps off its investor variable rate loans and Credit Union SA cut 15bps off its Low Deposit variable rate home loan.
Big Four Term Deposits tumble
All of the big four banks made changes to term deposit rates this week. On Monday, Commbank removed the 8-month special offer on its Business Investment Term Deposit of 4.75%p.a. and replaced it with a 9 month special offer of 4.45%p.a. and NAB lowered its rates on term deposits. NAB cut 3, 4, 5, 8, 9, 10, 11 month personal term deposits between 10bps and 20 bps for personal accounts, and 1, 3, 4, and 5 year terms by 20bps. ANZ adjusted its Advance Notice Term Deposit, cutting all 3-9 month terms and also cut the 2 year rates between 10bps - 25 bps.
Westpac followed today with further changes to term deposit rates, removing its 8 month special offer of 4.70%p.a. and cutting its 11 month special offer by 5 bps to take it to 4.60%p.a. – 4.70%p.a. if you sign up online.
ME bank also made a big cut to their 1 year term deposit rate today, taking the previous 4.55% p.a. rate to a just 2.00% p.a. – however they still have some specials for 4 (4.55% p.a.) and 6 (4.70% p.a.) month terms.
Other money moves included cuts from Credit Union SA, Judo Bank, AMP Bank, Bank of Us, Goldfields Money and Gateway Bank, and two increases from Credit Union SA (5 month term) and Bank of Us (3 month term).
Term Deposit insights:
- If you're looking to invest in term deposits in 2025, but want to balance higher returns with flexible access to your funds, ‘laddering’ could be the strategy you're looking for.
- Keeping up with savings conditions can be hard- which is why a term deposit is worth considering if you want a hassle-free way to grow your savings.
- Two of the Big 4 banks have begun trimming their term deposit rates in step with possible upcoming RBA cuts - is it time to switch?
Aussies travelling uninsured
Mozo started the week with the release of its latest Travel Insurance report, Travel Insurance Trends: Where We Go, What We Pay & How to Save report for 2025, providing key insights into Australian travel insurance habits, the costs of coverage, and how to unlock savings.
Despite the ongoing cost-of-living pressures, Aussies are continuing to prioritise travel, and destinations like Indonesia, Japan, and Thailand are becoming even more popular, with travel to Japan increasing by 34% and Thailand by 20% since 2022.
“Even with the current financial crunch, Australians are keen to explore the world,” says Rachel Wastell, Mozo’s money expert. “However, it’s important for travellers to be savvy about their travel insurance choices to avoid overpaying and maximise savings.”
Mozo’s research reveals significant price variations for travel insurance, with average costs for a two-week trip ranging from $204 to $414, depending on the destination. However, those comparing policies can find the best deals, with Mozo Experts Choice Award Winners offering savings of up to $157 for Aussies travelling to the USA. To see the details on how these savings were calculated, read the report here.
One major red flag in Mozo’s research is that only 1 in 5 Australians (20%) fully read their travel insurance policy Product Disclosure Statement (PDS). This lack of awareness can result in travellers being exposed to unexpected costs, particularly if they assume they’re covered for situations they aren’t.
“Read your PDS to understand exactly what’s covered,” Wastell advises. “It might not be the most exciting part of your trip planning, but it could save you from a stressful—and costly—holiday.”
Mozo’s top tips for saving on travel insurance include comparing policies, reading the fine print, and ensuring your cover is tailored to your specific trip and activities. To find out more, read the travel insurance report.
RBA Decision Looms: Will Bullock hold firm?
Although this week brought two Big Four banks fixed rate cuts, three cut term deposit rate cuts and there is mounting speculation around the RBA’s next decision (the RBA ASX rate tracker is currently pricing in a 90% chance of a cut), Mozo experts are advising caution.
While pressure is building for the RBA to cut rates next week, Marshall notes that this shift is not entirely in line with the broader economic data, and that this could be RBA Governor Michelle Bullock’s chance to prove the independence of the RBA ahead of a federal election, and an RBA board shake-up.
“There’s a lot of pressure on RBA Governor Michele Bullock to cut rates in February, but that pressure could actually make her more determined to maintain the RBA’s independence. Many will see this as her first real test – standing firm under intense public scrutiny when the fundamental economic conditions don’t yet support a rate cut.”
Senior Mozo Money Writer Peter Terlato recently dived into key economic indicators, to show that while speculation is mounting for a rate cut, the RBA is likely to hold the cash rate next week. The RBA has previously signaled that rate cuts would only be considered once:
- Core inflation is sustainably within target – but at 3.2%, it remains too high.
- Economic growth slows significantly – the economy hasn’t hit recession-level weakness.
- The labour market weakens further – job conditions remain relatively strong.
With these key conditions unmet, the RBA is likely to hold in February and wait for more data before making a move.
“With NAB and Westpac cutting fixed rates, some borrowers may see this as a sign that rate cuts are imminent. However, Mozo’s analysis suggests that the RBA is more likely to hold steady in February and reassess in the coming months,” explains Marshall. “Inflation remains a concern, and the economy, though softening, hasn’t yet hit the key RBA benchmarks for a rate reduction.”
The Rate Escape – Don’t Wait for the RBA Cut
On Thursday, ahead of the looming RBA decision, Mozo released its latest Home Loan Report, The Rate Escape, which revealed mortgage holders waiting for the Reserve Bank to cut interest rates next week could be missing out— as the savings on offer by making their own “rate cuts” could save them much more than an official Reserve Bank of Australia (RBA) cut.
“Many borrowers are waiting for the RBA cut, thinking that’s their best option, but the biggest savings can actually come from switching to a better rate on your own,” Mozo money expert Rachel Wastell said.
“Instead of sitting back and waiting, mortgage holders should act now to make proactive changes to reduce their repayments.”
Mozo’s Home Loan Report was compiled after experts analysed 444 home loans from 97 lenders and surveyed 1,000+ mortgage holders, as part of the Mozo Experts Choice Awards for Home Loans 2025.
The report details how much mortgage repayments have skyrocketed since the rate hiking cycle began, what Aussies are worried about if the RBA doesn’t cut next week as well, and five do-it-yourself rate cuts that could shave hundreds off monthly home loan costs.
5 DIY Rate Cuts
1. Go Beyond the Usual Suspects Many borrowers remain with big four banks offering higher rates. Mozo’s analysis found that challenger lenders offer rates 16% lower on average. Switching could save you up to half a percent off your rate.
2. Switch to a Mozo Winner Borrowers can save $217 per month by moving to a Mozo Experts Choice Award-winning lender. On fixed rates, borrowers can save $98 a month with a 5.72% p.a. rate.
3. Check Your LVR Borrowers with a lower loan-to-value ratio (LVR) pay lower rates. An LVR under 60% could save you over $130,000 in interest over the life of your loan.
4. Split Your Loan Consider splitting your loan between fixed and variable portions. This allows you to lock in stability while taking advantage of future rate cuts on the variable side.
5. Check Your Fees Review your loan fees. Some lenders charge up to $395 annually, and switching to a loan with lower or no fees can feel like an unofficial rate cut.
Best Home Loans in Australia Revealed
On Thursday, Mozo announced the winners of the 2025 Mozo Experts Choice Awards for Home Loans, highlighting the best-value lenders for Aussie borrowers.
“Choosing the right home loan is a big decision, but sifting through hundreds of options from dozens of lenders can be exhausting, and very time-consuming,” says AJ Duncanson, Data Director and Mozo Experts Choice Awards Judge.
“That’s why the Mozo winners list is an invaluable resource. It can offer new buyers and refinancers a solid starting point to compare home loan options tailored to their needs.”
- Australia's Best Home Lender 2025: Tiimely Home
- Exceptional Value Home Lenders: Australian Mutual Bank, Community First Bank, Newcastle Permanent, People’s Choice, Up
- Best Green Home Loan Award 2025: Bank Australia’s Clean Energy Home Loan
For borrowers looking to lower home loan costs, these award-winning lenders are a great place to start. Find out more and explore the full list of Mozo’s 2025 Experts Choice Award winners here.
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.
If you’d like to see the analysis in full once it’s released, you can subscribe to receive the Mozo Banking Roundup here.
Disclaimer: Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice. Target Market Determinations can be found on the provider's website. While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.