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Mozo’s live blog – Day of April 16
Mozo Live: Westpac Group slashes home loan package rates by at least 1%, more bank term deposits down
Stay on top of the latest in Australian banking. See interest rate changes, get news and product updates, follow market insights and read our expert analysis.
A side-by-side look at how the two parties plan to tackle housing
In case you missed it, we posted a write-up explaining both Labour and the Coalition's policies to address the dual housing crises of affordability and supply.
While that article does a great job explaining those policies and how they might affect you, we thought we'd go a step further and put the key points down into a simple table so you can compare the policies side-by-side:
| Labor (Albanese Government) | Coalition (Dutton Opposition) | |
|---|---|---|
|
Core proposals |
- Will remove the 35,000 participant cap on the First Home Guarantee (5% deposit, no LMI). - $10bn to build 100,000 first-home buyer properties. - $10bn Housing Australia Future Fund for social and affordable housing. |
- Tax deduction on interest for the first $650k of a home loan for the first 5 years (income caps apply). - Access up to $50k from super to use as a home deposit. |
|
Who benefits |
- First-home buyers with smaller deposits. - Property price caps apply to the guarantee. |
- Buyers with enough income to borrow but needing tax relief or deposit help. - Higher earners may benefit more from deductions. |
|
Housing supply approach |
- Government-funded construction of new homes, including for first-home buyers and low-income renters. |
- Encourage private development through market incentives like tax breaks and infrastructure support |
|
Impact on parental support |
- Smaller deposits reduce the need for family assistance. |
- Super access and tax relief reduces reliance on mum and dad. |
|
Common criticisms |
- Demand could outpace supply and lift prices. - May lead to high-debt borrowing. |
- Similar concerns about demand-driven price increases. - Tax breaks could favour wealthier buyers and reduce government revenue. |
Look, we know getting into the housing market feels incredibly tough right now. But it's definitely reassuring to see affordability getting serious attention from both sides of the aisle.
In the meantime, if you're exploring what's possible now and finding that saving the typical 20% deposit is the biggest hurdle, here are some low-deposit home loans solutions designed to help.
And with that, we're signing off for the day. You know right where to find us tomorrow!
See how the Big Four package rate home loans stack up against other
Westpac Group has shaken up the mortgage market today, slashing variable package rates by at least 1 percentage point across all its brands – Westpac, St.George, Bank of Melbourne and BankSA. This makes it the most aggressive move by a major lender in recent months.
The new rates place Westpac at the front of the pack, now matching CommBank’s package rate at 6.24% p.a. (comparison rate 6.61% p.a.). That’s below the current average Big Four variable rate for owner occupiers at 6.63% p.a. according to Mozo’s database – and well under the average rate on Mozo’s database of 6.42% p.a. for an owner occupied, principal and interest loan at $500k with 80% LVR.
Meanwhile, NAB and ANZ are still sitting higher at 6.74% and 6.99% p.a. respectively. Westpac’s move could pressure others to follow, especially if the RBA decides to cut the cash rate again in May.
Big 4 rates with a home loan package available
|
Lender |
Home loan |
Variable rate |
Comparison rate* |
Ongoing fee |
|
Westpac |
Rocket Repay Home Loan |
6.24% |
6.61% |
$395 annual fee |
|
Commonwealth Bank |
Standard Variable Home Loan |
6.24% |
6.62% |
$395 annual fee |
|
NAB |
Tailored Home Loan |
6.74% |
6.82% |
$8 monthly fee |
|
ANZ |
Standard Variable Home Loan |
6.99% |
6.99% |
$10 monthly fee for optional offset account |
|
Source: mozo.com.au as at 16 April 2025. Leading Big 4 variable rates for owner occupier, principal & interest home loans with an offset account or packages available, at $500,000, 80% LVR. | ||||
|
*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. | ||||
Compare Australia’s best home loans right now
Get startedTerm deposit rate roundup: wave of reductions
Term deposit rates continue to trend downward this week. While some banks maintain their edge with competitive mid-range terms, most have quietly trimmed rates – particularly on popular 6 to 12-month terms.
Here are some of the key rate movements:
ANZ & Bendigo Bank pull back: ANZ slashed its 8-month rate, dropping from 4.50% to 4.25%. Bendigo Bank mirrored the trend with a sharp 5-month cut from 3.80% to 3.10% – one of the steepest this month.
Beyond Bank shows resilience: While most banks dropped 1-year rates, Beyond Bank held relatively firm, offering 4.05%, down only 10 basis points. Their 2 to 5-year terms fell by the same margin, now at 3.45%.
Firefighters Mutual offers mixed bag: Firefighters Mutual Bank made an unusual move by increasing its 6-month rate to 4.60%, while most others trimmed theirs. That said, it also dropped its 5-month term from 4.35% to 4.05%, showing caution on shorter fixed terms.
AMP & Macquarie scale back: Both AMP Bank and Macquarie pulled back significantly across the board. AMP’s 1-year rate fell to 4.05%, while Macquarie now sits at 3.80%, down from 4.00%.
Gateway Bank stands out among the noise: Gateway offers among the best 1-year performers at 4.50%, barely moving from last month.
What this means for savers
If you're chasing yield, shorter terms under 6 months are softening, and even 1-year rates are inching downward – potentially signalling market expectations for future RBA cuts.
In this environment, savers could look to term deposit laddering – spreading your funds across different maturities – to balance flexibility and higher returns. It allows you to take advantage of rising rates on future maturities while still locking in today’s deals where available.
Explore top term deposit rates on Mozo now
See hereWestpac Group cuts home loans by at least 1%
Westpac and its subsidiaries – St.George, Bank of Melbourne and BankSA – have slashed home loan interest rates by at least 1 percentage point across multiple loan types. This is a massive rates shake-up.
The move comes just weeks out from the RBA’s May meeting, where major banks including NAB are tipping a potential 50 basis point rate cut.
These latest lender reductions could mean serious savings for borrowers but not everyone will automatically benefit – they're for new customers. If your rate starts with a 7, you might consider your refinancing options.