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.
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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.
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That's equivalent to almost 2 million mortgagors who are experiencing affordability problems despite 2 cash rate cuts since February.
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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.
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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.
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Only 1 in 3 (32%) said they would be completely fine with their rate even before the cut.
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A further 8% said they only needed 1 cut to be comfortable, and they just got it.
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Rebecca Pike, money expert at Finder, said millions of Australians are counting on multiple rate cuts to ease the pressure.
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"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.
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"Without significant rate cuts from the RBA, many will face serious financial strain by the new year."
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Pike said many borrowers had drained emergency savings topping up their home loan and coping with the rising cost of living.
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"Households are desperate for home loan relief in the form of multiple rate drops.
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"If your provider is not competitive, now is the time to consider refinancing.
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"We're beginning to see lower fixed rates emerge as variable rates fall and lenders ramp up competition for new business," Pike said.
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Women (65%) were more likely than men (54%) to need a drop in their interest rate to comfortably afford their mortgage.
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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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