RBA reality check: 3 in 5 homeowners need more cuts to cope
Despite May's rate cut, millions of Australians are still struggling, according to new research by Finder.
A Finder survey of 1,027 respondents – 297 of whom are mortgage holders – revealed 60% are in need of a reprieve, even after yesterday's Reserve Bank rate cut.
That's equivalent to almost 2 million mortgagors who are experiencing affordability problems despite 2 cash rate cuts since February.
That means the cash rate needs to drop to 3.35% (assuming each cut is the typical 25 basis points) to bring mortgage repayments to an affordable level for the majority of homeowners.
Taking into account yesterday's rate cut, half of borrowers (50%) would still need 2 or more interest rate cuts to comfortably afford their mortgage, while 17% – equivalent to 561,000 mortgage holders – would need 5 or more.
Only 1 in 3 (32%) said they would be completely fine with their rate even before the cut.
A further 8% said they only needed 1 cut to be comfortable, and they just got it.
Rebecca Pike, money expert at Finder, said millions of Australians are counting on multiple rate cuts to ease the pressure.
"We are moving in the right direction, but millions of mortgage holders will lose grip on their loan if interest rates don't keep steadily falling.
"Without significant rate cuts from the RBA, many will face serious financial strain by the new year."
Pike said many borrowers had drained emergency savings topping up their home loan and coping with the rising cost of living.
"Households are desperate for home loan relief in the form of multiple rate drops.
"If your provider is not competitive, now is the time to consider refinancing.
"We're beginning to see lower fixed rates emerge as variable rates fall and lenders ramp up competition for new business," Pike said.
Women (65%) were more likely than men (54%) to need a drop in their interest rate to comfortably afford their mortgage.
Disclaimer: This survey question was asked ahead of the RBA rate decision in May.
The last rate cut saved the average borrower $100 per month, how many more rate cuts would you need to comfortably afford your mortgage?
| 1 cut* | 8% |
| 2 cuts | 9.00% |
| 3 cuts | 11.00% |
| 4 cuts | 12.00% |
| 5 cuts | 10.00% |
| 6 cuts | 4% |
| 7 cuts | 2% |
| 8 cuts | 3% |
| 9 cuts | 0% |
| 10 cuts | 4% |
| 11 cuts or more | 4% |
| None, I already can afford my mortgage | 32% |
| Source: Finder survey of 1,027 respondents, including 297 mortgage holders, May 2025 *20 May RBA rate cut |  |
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 1,027 respondents, 297 mortgage holders, from May 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
Finder will be tracking the rate changes as they happen at https://www.finder.com.au/rba-cash-rate/interest-rate-cuts/interest-rate-cuts
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