How to Save Nearly $3,500 a Year and Beat the Interest Pain | Finder – real estate.com.au

Australian homeowners have been given a list of household finance hacks that could put almost $3,500 in their pockets to survive the pain of 2026 interest rate hikes.

With the Reserve Bank tipped to increase home loan costs for the country’s mortgage holders as early as Tuesday, experts have urged Australians to treat saving money as their side hustle this year – and revealed how a cheap thermometer could be one of the best summer savers for homes across the country.

The Commonwealth Bank, Westpac, NAB and ANZ are all now signaling a rate hike after data released this week showed inflation is back above the national target of 2-3 percent.

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If the RBA decides to raise rates by 0.25 percentage points next Tuesday, a household with the country’s average loan of $694,000 will go from $4233 a month to $4337 – an extra $1248 a year, according to data from the Australian Bureau of Statistics.

Finder head of consumer research Graham Cooke has put together a list of money moves that could save the average Australian family about $3,488 over 12 months, which for most households is almost triple the cost of a rate hike.

Mr Cook said 2026 was the year homeowners should treat savings as an “afterthought”, while it was expected that a rate hike next week “could be a financial shock to many households who still feel they are teetering on the brink of a cost of living crisis”.

HOW TO BEAT THE RATE INCREASES IN 2026

+ Refinance your home loan: The average Australian with a mortgage can save $143 a month, or $1,716 over a year, by refinancing their loan.

+ Turn off wall appliances: Aussies can save an average of $38.06 per quarter or up to $152.24 per year.

+ Installing solar panels: average costs around €6,000, but typically saves you €1,000 per year. A significantly better return than $300 per year if you leave the money in the bank.

+ Look for better utilities: Finder data shows Australian households are paying an average of $569 extra per year in energy, broadband and mobile costs because they’re not getting the best deal.

If you have extra money in the bank, installing solar panels can save your bill much more than you will earn in interest repayments from your bank.

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+ Car Insurance: Finder recently looked at two comprehensive car insurance policies that have similar features, yet cost $245 apart.

+ Increase your air conditioning temperature: a one degree increase can save you $27 in the summer, a two degree increase can save you $51.

+ Buy a thermometer: Available for less than $10 on Amazon, it lets you know when it’s cooler outside than in your house — and when you can cool it for free.

Source: Vinder

“If you set aside three or four hours and treat it as an afterthought, the benefits last a long time,” he said.

The ‘no-brainer’ for mortgage holders is refinancing, with the average Australian household typically paying a rate 0.25 percentage points higher than the lowest rate on offer – more than $1700 for many.

Some lenders also offered cash back to convince you to switch, and with many of those offers ranging from $2,000 to $4,000, they would be enough to cover a year’s worth of repayments for an additional 0.25 percent interest rate increase.

Alternatively, that cashback or some savings could be spent on installing solar panels – which costs most households around £6,000 but typically delivers £1,000 per year in energy bill savings – and could increase the value of your home.

Car insurance is one of the most likely bills that will save you money

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LOAN RATE INCREASES

$250,000 loan: $1523 per month; $1562 per month (up 0.25); $1600 per month (0.5 increase)

$500,000 loan: $3,050 per month; $3,124 per month (up 0.25); $3200 per month (0.5 increase)

$694,000 loan (Australian average): $4233 per month; $4337 per month (up 0.25); $4442 per month (0.5 increase)

$750,000 loan: $4574 per month; $4687 per month (up 0.25); $4800 per month (0.5 increase)

$1 million loan: $6,099 per month; $6249 per month (up 0.25); $6400 per month (0.5 increase)

$1.25 million loan: $7,624 per month; $7811 per month (up 0.25); $8000 per month (0.5 increase)

Assuming a loan term of 25 years, a base interest rate of 5.43 today, no costs and monthly repayments

Source: government website MoneySmart

Mr. Cooke estimated that you would make about $300 in a year if you left that money in the bank.

Purchasing more efficient appliances could also mean long-term savings, and turning off the power at the wall could be worth more than $150 to many households over a twelve-month period.

“And every two or three degrees you increase the temperature of your air conditioner, that will save you too,” Cooke said.

While a fan can be an inexpensive purchase that saves you from having to turn on the air conditioner, he says a room thermometer purchased from Amazon for less than $10 will let you know when it’s cooler outside than inside, allowing you to cool down for free by opening windows.

For those who have some money to spare and want to save in the long term, double glazing usually only takes about six years to pay for itself.

Finder’s head of consumer research Graham Cooke has estimated that there are thousands of dollars in savings available to help overcome the pain of interest rate increases.

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Insurance costs are also “ripe for savings” and Mr Cooke said there could be hundreds of dollars difference between comparable car policies– although it was important to look at the fine print.

Professional homebuyer Frank Valentic said homeowners should check with their mortgage broker every 12 months to ensure they were not overpaying on their mortgage.

“Use a broker to shop around and refinance every 12 months and keep the banks on their toes,” Valentic said.

“This simple exercise will save you thousands every year.”

The founder of Advantage Property Consulting added that the other important thing homeowners could do was send some of their income to a bank account they couldn’t access – and live on a smaller share of their wages.

Saving money on bills can be an even better way to increase overall household finances than making more money, because no taxes are paid on the money saved.

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Mr Valentic said tighter lending standards could also make 2026 a great year to buy property, if you are able to do so.

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