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How to save money as the cash rate continues to rise

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When The Reserve Bank of Australia (RBA) increased the cash rate for the seventh month in a row, I could feel Aussie homeowners shaking at the thought of even more money leaving their bank accounts each month – and I was right there with them. 

With the cash rate having increased from 2.6% to 2.85%, it’s safe to say that Australians really are feeling the financial ‘pinch’ right now as interest rates continue to rise across the board. Regardless of whether you’re saving for a home deposit, looking to bid at an auction to buy, or you’re already paying off a mortgage, the cost to service a loan is certainly increasing.

Combine this with outrageous inflation, increased cost of living and a mostly stagnant wage growth, people are knuckling down more than ever to save money where possible, in an attempt to survive the ever-growing costs of everyday life and homeownership. Do not fear as I’ve a few good strategies you can add to your toolbox!

Though avoiding increasing interest rates may not be possible while you’re on a variable interest rate or an expiring fixed rate loan, you can still be creative in how you save money. Let’s take a deep-dive into how you can save more than just a few dollars in the short and long-term! 


Check your budget

First things first. Keep it simple by making note of all your expenses. Why? Because you may see a pattern emerge that highlights some unnecessary expenses, and gives you the opportunity to cull them. I’m thinking memberships you don’t make the most of, subscription services that aren’t essential to your everyday life, and luxury purchases (for the obvious reasons!). 


Extra repayments

Got a loan that allows you to make extra repayments? If you’ve got a few spare dollars at the end of each pay cycle, throw it onto your loan. Every dollar counts when paying off a loan, and if you can manage to pay it off sooner rather than later, that’s less money spent on interest fees and more in your bank account! 



Speak with your broker to see if you can reprice or refinance your loan to a lower rate or for lower fees. Don’t have a broker or not sure who to call? Let us know and we’ll connect you with one of our trusted mortgage brokers.


Assess your packages

Is your home loan package still aligned with your needs? This is something your broker can check for you. If you’re not using all the features of your package, it may be time to switch. Save yourself the unnecessary fees and change to a more basic plan that meets your current and future needs. 

Otherwise, reassess your package to become more aware of what options are available to you. You may be able to make use of an additional feature such as an offset account that can lead to saved moolah. Of course, have your broker run the calculations prior to making any changes so you can rest assured it is worth switching packages.


Change the term

Did you know you can lower your repayments by extending the term of your loan? Remember however that this means you will pay more over the life of the loan, but less each payment. This is a great option if you’re a homeowner who is experiencing cash flow problems and need financial relief fast without jeopardising your overall finances.


Offset account and redraw facility

Need to increase your cash flow? If you have an offset or redraw facility, now is the prime time to use them. When you put money into your offset account, or make additional repayments on your loan, you save on interest – and this means more money in your account and less paid out to the banks!

If you are looking for ways to save on your home loan or in your journey towards home ownership, give us – your buyers advocate, a call on (02) 8916 6172  to discuss your options and goals! You can also email us at

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