There are fears Reserve Bank governor Michelle Bullock will announce an interest rate hike on Tuesday. Picture: NewsWire/ Monique Harmer.
Aussie homeowners have been given a bill-busting list of household finance hacks that could put almost $3500 dollars back in their pockets to survive interest rate hike pain in 2026.
With the Reserve Bank tipped to raise home loan costs for the nation’s mortgage holders as soon 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 tipping a rate increase next week after data released this week showed inflation is back above the nation’s 2-3 per cent target range.
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If the RBA decides to hike rates 0.25 percentage points next Tuesday a household with the nation’s $694,000 average loan, according to Australian Bureau of Statistics data, will go from paying $4233 a month to $4337 — an extra $1248 a year.
Finder head of consumer research Graham Cooke has compiled a list of money moves that could save the average Aussie family about $3488 in 12 months, close to triple the cost of a rate hike for most households.
Mr Cook said 2026 was the year homeowners should treat saving money as their “side hustle” amid expectations a rate hike next week could be “a financial shock to a lot of households that still feel they are teetering on the edge of a cost of living crisis”.
HOW TO BEAT RATE HIKES IN 2026
+ Refinance your home loan: The average Aussie with a mortgage could save $143 per month, or $1,716 over a year, by refinancing their loan.
+ Switch off appliances at the wall: Aussies could save on average $38.06 per quarter or up to $152.24 a year.
+ Install solar panels: Average cost about $6000, but typically saving you $1000 a year. A significantly better return than $300 a year from leaving the money in the bank.
+ Look for better utilities deals: Finder data shows Aussie households pay an average $569 a year extra in energy, broadband, and mobile costs by not getting the best deal.
If you’ve got spare cash sitting in the bank, installing solar panels could deliver far bigger bill savings than you’ll make in interest repayments from your bank.
+ Car insurance: Finder recently looked at two comprehensive car insurance policies that share similar features, yet are priced $245 apart.
+ Increase your aircon temperature: A one degree increase could save $27 across summer, a two degree rise could save you $51.
+ Get a thermometer: Available for less than $10 on Amazon, but lets you know when it’s cooler outside than inside your home — and when you can cool it for free.
Source: Finder
“If you put aside three or four hours and consider it your side hustle, the benefits are there for 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 on offer — more than $1700 for many.
Some lenders were also offering cash back to convince you to switch, and with many of those offers at $2000 to $4000 they would be enough to cover a year’s worth of repayments for an extra 0.25 per cent interest rate hike.
Alternatively, that cashback or some savings could be spent installing solar panels — which cost most households about $6000, but typically deliver $1000 a year in savings on energy bills — and might boost your home’s value.
Car insurance is one of the most likely bills that might help you save money
RATE HIKE LOAN INCREASES
$250,000 loan: $1523 a month; $1562 a month (0.25 hike); $1600 a month (0.5 hike)
$500,000 loan: $3050 a month; $3124 a month (0.25 hike); $3200 a month (0.5 hike)
$694,000 loan (Australian average): $4233 a month; $4337 a month (0.25 hike); $4442 a month (0.5 hike)
$750,000 loan: $4574 a month; $4687 a month (0.25 hike); $4800 a month (0.5 hike)
$1m loan: $6099 a month; $6249 a month (0.25 hike); $6400 a month (0.5 hike)
$1.25m loan: $7624 a month; $7811 a month (0.25 hike); $8000 a month (0.5 hike)
Assumes 25 year loan term, 5.43 base interest rate today, no fees and monthly repayments
Source: MoneySmart government website
Mr Cooke estimated you would earn about $300 in a year by leaving that money in the bank.
Getting more efficient appliances could also provide long-term savings, and turning the power off at the wall could be worth more than $150 for many households over 12 months.
“And every two or three degrees you raise the temperature on your airconditioner, that will save you, too,” Mr Cooke said.
While a fan could be a cheap purchase that would allow you to skip turning on the airconditioner, he said a room thermometer bought from Amazon for less than $10 would let you know the moment it was cooler outside your home than inside — allowing for free cooling by opening windows.
For those who have some money spare and a long-term view to saving, double glazing typically only takes about six years to pay for itself.
Finder’s head of consumer research Graham Cooke has estimated thousands of dollars in savings are available to help beat rate hike pain.
Insurance costs are also “a ripe one for savings” and Mr Cooke said there could be hundreds of dollars difference between similar car policies— though it was important to look at the fine print.
Professional homebuyer Frank Valentic said homeowners needed to contact their mortgage broker every 12 months to ensure they were not overpaying for their mortgage.
“Use a broker to shop around and refinance every 12 months and keep the banks on their toes,” Mr Valentic said.
“This simple exercise will save you thousands every year.”
The Advantage Property Consulting founder added that the other major thing homeowners could do was to designate a portion of their income to go to a bank account they didn’t touch — and to live on a smaller share of their wage.
Saving money on bills can be an even better way to boost overall household funds than earning more money, because there is no tax paid on money saved.
Mr Valentic said tougher lending conditions could also make 2026 a great year to buy property if you were in a position to do so.
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