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.
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A Finder survey of 1,013 respondents – 226 of whom are mortgage holders – revealed that most would be taking prudent steps with their savings.
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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.
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The research found 8% plan to invest the additional funds.
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A further 6% intend to spend the extra cash.
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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.
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"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.
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"Savings took a big hit for many households during the cost of living crisis so this is a chance to build it back up."
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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%.
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If the RBA cuts the cash rate again in May to 3.85%, the average mortgage holder will save a further $101 per month.
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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.
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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.
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"Many are considering how any potential savings could be used to pay down debt, build up savings, and manage essential expenses.
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"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."
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Pike said if your home loan doesn't have a '5' in front of it, you're likely paying too much.
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"Even small differences in interest rates can translate to substantial savings over the life of a home loan.
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"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.
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"By , you can avoid paying a "loyalty tax" and ensure you're getting a fair deal," Pike said.
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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 |  |
Sources
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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