Switching providers across seven household bills could save $4,474 annually, with home loans offering the biggest gains
Australian households could save an estimated $4,474 over the next 12 months by reviewing key household bills — with home loans identified as the single largest source of savings — according to new research from Canstar.com.au.
The analysis examined potential savings available to an average family of four across seven household expenses: home loans, car insurance, home and contents insurance, private health cover, NBN, electricity, and mobile phone plans.
The research identified home loan costs as the single biggest opportunity. Borrowers negotiating a 0.25 percentage point reduction on a variable rate of 6.26% on a $600,000 loan with 25 years remaining could save close to $1,500 in interest over a year. Those who refinance from the average variable rate of 6.26% to the lowest available rate of 5.69% could reduce their interest bill by an estimated $2,267 over 12 months, even after accounting for switching costs.
| The switch | Average cost | Lower cost | Savings | |
|---|---|---|---|---|
| Home loan | Haggle for 0.25% cut or switch to lowest rate, $600k loan | 6.26% | From 5.69% to 6.01% |
From $1,499 |
| Car insurance (comprehensive) |
Switch to a 5-star rated provider instead of the average | $3,133 | $2,093 | $1,040 |
| Home & contents insurance | Switch to a 5-star rated provider instead of the average | $2,795 | $2,029 | $766 |
| Health insurance | Silver, family policy switching from the average to lowest | $3,782 | $3,394 | $388 |
| NBN | Home Fast plan, switch from the average to the lowest | $1,286 | $960 | $325 |
| Electricity | Switch from average to the lowest-priced plan | $1,772 | $1,455 | $317 |
| Mobile plans | Switch 2x from the average 50GB postpaid plan to the lowest | $474 | $335 | $139 |
| TOTAL | $4,474 | |||
Despite the potential savings on offer, Canstar's data shows a significant proportion of Australians have never changed providers. The research found 52% of home loan borrowers have never refinanced or switched lender, while 44% of private health insurance holders have never changed cover. Around one-third of home and car insurance policyholders have also never shopped around.
"The reality is, a lot of people are still paying a 'set and forget' tax in some shape or form," said Sally Tindall (pictured right), data insights director at Canstar. "They signed up to a deal years ago and never looked back, even though the market has moved on.
"It's time to break up the loyalty bandwagon, and for good. The first step is to carve out three hours in one day. If that means taking off a half day from work, so be it. Write down your regular bills, then go through them one by one. Ask yourself: can I negotiate this down? Can I get a better deal somewhere else? Or do I still need this at all?
"Sort the bills in order of most expensive and there is your to-do list. While some bills are easy to switch, don't be afraid to haggle with your existing provider as well. You'd be surprised how often they can find a discount once you mention you're looking around."
For households willing to go further, Canstar estimates total annual savings could surpass $11,300 when additional measures are included — such as renegotiating car loans and credit cards, reviewing other insurance products, and substituting roughly half of a typical grocery basket with lower-cost alternatives.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
