Aussie homeowners are set to “stash” rather than “splash” savings from a widely expected RBA rate cut next week, with new Compare the Market research showing most will boost savings or offset accounts—or keep repayments unchanged.

A borrower with a loan of $666,000 would pocket around $100 a month or more than $1,200 a year with a 0.25% rate cut. The amount would double if the RBA slashes rates by 0.50%, which some economists are predicting.

Compare the Market’s Economic Director, David Koch, said it’s looking like good news for homeowners hoping to bolster their savings, following an interest rate hold at April’s RBA board meeting.

“It’s highly likely that we’ll see some sort of interest rate cut this month. This is fantastic news for the 29% of Aussie homeowners who told us they’d use the extra money to get their savings back into the green,” Mr Koch said.

“If you’ve weathered the previous rate hikes and your budget is still in pretty good shape, it’s not a bad idea to keep your repayments the same, even when your lender passes on rate cuts. About 27% of homeowners told us they would use this strategy to pay down their loan faster.

“When you pay off more principal, the size of your loan and ultimately the interest you pay will reduce over your loan’s life. My tip is to check if you need to set a new repayment amount with your bank or lender once the savings are passed on, as it may automatically adjust in line with rate changes.”

Mr Koch said some banks are also offering cashback offers if you refinance – another way to grow your savings.

“If refinancing is something you’ve been considering, now could be a great time – especially if your current lender tells you they can’t match some of the competitive deals available right now,” Mr Koch said. “Time and time again, we see some of the best offers reserved for new customers, so ensure your loyalty isn’t costing you.

“We’re seeing some fantastic cashback offers pop up. You can essentially lock in a better interest rate and pocket some extra cash. It’s like having your cake and eating it too. Just double-check any applicable fees you may incur to switch lenders, as you don’t want them to gobble your savings up.”

Meanwhile, around one in five homeowners surveyed (21%) would put the extra money into an offset account.

“When used correctly, offset accounts are a great way to help you pay less interest on your home loan,” Mr Koch said.  “Whatever amount of money is in your offset account is subtracted from your home loan balance each month. The more money you have in an offset account, the less you’ll pay in interest on your home loan. But remember there are fees associated with offset accounts, so ensure the savings outweigh these costs.”

Compare the Market’s survey also found around a fifth of mortgage holders surveyed (21%) planned on spending the extra money from a rate cut on things like groceries (14%), holidays (3%), health and beauty (2%) and social activities (2%).

*Survey of 1,007 Australian adults, conducted March 2025.

For more information, please contact:  

Phillip Portman | 0437 384 471 | [email protected]

Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.

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