Cuts both ways: What Aussies are doing with their new-found mortgage savings
Australian homeowners have revealed where they'll be putting the extra cashflow from February's RBA cut, according to new research by Finder.
A Finder survey of 1,013 respondents – 226 of whom are mortgage holders – revealed that most would be taking prudent steps with their savings.
More than 2 in 5 (42%) plan to save the money from reduced repayments, while 39% plan to pay off more of their home loan or put the money in an offset account.
The research found 8% plan to invest the additional funds.
A further 6% intend to spend the extra cash.
Rebecca Pike, money expert at Finder, said despite a rate hold earlier this week, the previous cut offered some breathing room for households struggling with increased mortgage repayments.
"It's encouraging to see so many Aussies are choosing to put the savings from reduced repayments towards their financial health, with a strong focus on paying off debt or building savings.
"Savings took a big hit for many households during the cost of living crisis so this is a chance to build it back up."
Currently, Aussies with an average home loan of $641,416 will save over $103 per month since the RBA cut the cash rate by 25 basis points to 4.10%.
If the RBA cuts the cash rate again in May to 3.85%, the average mortgage holder will save a further $101 per month.
That's an extra $204 per month – $2,448 a year – Aussies will be saving in total since the RBA cut the cash rate in February.
Pike said Aussies are still very aware of cost of living pressures, and the extra cashflow from the last cut has left many closely examining their household budgets.
"Many are considering how any potential savings could be used to pay down debt, build up savings, and manage essential expenses.
"If you've been comfortably managing your mortgage repayments, continuing to pay as though the rate cut didn't happen could save you thousands over the life of the loan."
Pike said if your home loan doesn't have a '5' in front of it, you're likely paying too much.
"Even small differences in interest rates can translate to substantial savings over the life of a home loan.
"Thousands, or even tens of thousands of dollars, can be saved by securing a lower rate, and lenders often offer better rates to new customers than to existing ones.
"By , you can avoid paying a "loyalty tax" and ensure you're getting a fair deal," Pike said.
What do you plan to do with the savings from the recent cut to home loan rates?
| Save | 42% |
| Pay off more of my home loan / put it in an offset | 39% |
| Invest | 8% |
| Spend | 6% |
| My entire home loan is on a fixed rate | 5% |
| Source: Finder survey of 1,013 respondents, including 266 mortgage holders, March 2025 |  |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,013 respondents – 266 mortgage holders – from March 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
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