New research from CommBank has revealed the vast majority of Australian home owners were preparing for an interest rate rise prior to the Reserve Bank’s decision to increase the cash rate in May.
According to the research, more than 90 per cent of Australian home owners have taken steps to mitigate the impact of rising mortgage rates. Close to half (47 per cent) reduced their living costs, 42 per cent built up their savings, and almost two fifths (38 per cent) have been making additional repayments on their home loan to get ahead. The research also found that 37 per cent of Australians have been putting money into their offset/redraw account and a third (33 per cent) have been looking for cheaper providers for utilities/services.
CommBank’s Executive General Manager of Թվ Buying, Dr Michael Baumann, said there is a range of tools and offers that customers may not be aware of which highlights the important role lenders and brokers play in supporting customers in the current environment.
“We know that one in two CommBank customers are more than three months ahead of their home loan repayments and it’s encouraging that the majority of Australian homeowners are taking proactive steps to continue to improve their financial position with rates expected to continue to increase over the next 12-18 months.
“We are uniquely positioned to help home loan customers manage cost of living pressures through exclusive offers from our suite of innovative partners, including local telecom provider More that offers great savings on unavoidable and ongoing costs like internet.
“Through NetBank and our industry leading app, eligible customers with a variable rate loan are also able to apply to split their home loan at any time. This can give them the certainty of a fixed rate and the flexibility and features of a variable rate, including access to multiple offset accounts on eligible home loans. Depending on their circumstances, they could save thousands in interest expenses over the life of their loan.”
We have seen higher splitting activity and a shift to fixed rates in response to the recent cash rate increase as customers explore their options. Since the start of May splitting activity has more than doubled.
Five ways homeowners can be savvier with their home loan:
- Take advantage of offers and partnerships: With the rising cost of living, looking for deals on everyday services like utilities is a great way for homeowners to save money and reduce expenses. CommBank customers can access exclusive offers through the bank’s partners, like More.
CommBank customers can currently access an exclusive 30 per cent off More nbnTM
