New data from the Commonwealth Bank shows that just 14 per cent of eligible1 home loan customers reduced their home loan direct debit repayments following the February 2025 rate cut.
The 0.25 per cent per annum rate reduction delivered monthly savings of up to $80 for customers making principal and interest repayments on an average loan size of $500,000.
Speaking about the data ahead of the Reserve Bank of Australia’s (RBA) cash rate decision on 20 May, Commonwealth Bank’s Home Buying Executive General Manager, Dr Michael Baumann said: “Home owners appreciate the flexibility to make financial choices that suit their current and future goals and we offer eligible home loan customers the option to reduce their direct debit repayments or leave it untouched.
“Following February’s rate cut, around 14 per cent of eligible customers took this opportunity to reduce their direct debit to align with the lower repayment - thereby freeing up their current cash flow.”
The data also revealed that more than 95 per cent of customers who chose to adjust their home loan direct debit did so via the CommBank app or NetBank in just minutes. The remaining customers either called or visited a branch to make the adjustment.
“For those who did not reduce their direct debit repayments, they may now be making additional repayments on their mortgage, which could help them to pay off their loan faster,” Dr Baumann said.
“These additional payments will also increase the available balance of their loan accounts and customers may have the flexibility to redraw the available balance at any time, for example if they experience an unexpected cost.”
Looking ahead, Dr Baumann said he expects the proportion of customers using any additional rate cuts to free up their cash flow to increase.
“If rates fall further, it could deliver greater total savings to eligible home loan customers. As such, I wouldn’t be surprised to see more home loan customers choosing to free up their cash flow by lowering their regular mortgage repayments,” he said.
Customers can use the CommBank app or NetBank at any time to understand what their ongoing home loan minimum repayment amount is and then adjust their mortgage direct debit accordingly.
“We aim to make our self-service options the best digital banking experience in Australia, with flexibility, convenience and security.
“The good news is eligible home loan customers do not need to wait for further rate reductions to change their mortgage direct debits; they can make real-time adjustments in alignment with their unique and ever-evolving circumstances.”
1Customers on a variable rate home loan who are currently paying more than their minimum repayment amount via direct debit.
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