They could be missing out on savings after recent rate cuts
More than half of Australian mortgage holders are unaware of the interest rate on their home loan, according to new research from comparison site Finder.
A survey conducted among 1,027 Australians, including 291 with mortgages, found that 54% of borrowers did not know their current interest rate — equating to around 1.8 million people nationwide. The findings point to a potential gap in financial awareness that could be contributing to mounting household budget pressures.
The data also showed a sharp divide by age. Gen Z borrowers were the least informed, with 69% unable to identify their interest rate. The figure stood at 52% for both Gen Y and Gen X respondents.
Graham Cooke (pictured above), head of consumer research at Finder, stressed that staying informed is key to managing home loan repayments effectively.
“Mortgage repayments have a huge effect on the monthly cash flow of Australian households, yet more than half are unaware how much they could be overpaying each month,” Cooke said. “With two rate cuts in three months, the average homeowner could be saving thousands.”
Finder estimates that the typical borrower could save approximately $213 each month — or $2,553 annually — following the Reserve Bank of Australia’s rate reductions in February and May. If further cuts are implemented later in the year, those savings could climb to $420 monthly, or $5,044 a year.
Cooke urged homeowners not to rely on loyalty to their lender when seeking savings. “Banks rarely reward complacency, so reviewing your mortgage once a year should be as routine as your tax return,” he said. “Now is the time to consider refinancing.”
The call to refinance comes amid a surge in home loan switching activity. According to the Australian Bureau of Statistics, refinancing volumes in the first quarter of 2025 reached their highest level since September 2023.
“A lower cash rate doesn’t automatically mean your lender will pass on the full savings – you’ve got to be proactive and ask for a better deal,” Cooke said.
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