iscover 
According to the latest quarterly Mortgage Choice Home Loan Report, based on home loan submission data from Mortgage Choice and a national survey of 1,000 consumers, 26 per cent of borrowers reduced their repayments during 2025’s rate cuts to free up cash.
Sixty per cent of respondents with a mortgage kept their repayments at the higher level to pay off their loan faster while one in 10 did not realise they had the option to change their repayment amount.
The survey also tested borrower resilience to further tightening. When asked how they would manage a 25 basis point increase in their variable rate, 13 per cent of borrowers said they would struggle to meet their home loan repayments and would need to dip into their savings if their interest rate rose by 25 basis points.
Thirty-five per cent said they could absorb the rise easily without altering their spending, while a further 43 per cent said they could manage but would need to cut back on discretionary spending.
The data coincides with the Reserve Bank of Australia’s (RBA) decision on 3 February to increase the official cash rate by 0.25 percentage points to 3.85 per cent, marking the first movement since it was reduced to 3.60 per cent on 13 August 2025.
Mortgage Choice chief executive officer Anthony Waldron said that although it was pleasing to see most borrowers proactively managing their home loan, the Reserve Bank of Australia’s decision to hike rates served as a warning for borrowers to remain prepared.
“The Reserve Bank’s decision to lift the cash rate at its February monetary policy meeting is a timely reminder that if you’re worried about how rate hikes might impact your lifestyle, being proactive is your best defence,” Waldron said.
“Reach out to a mortgage broker to learn how you can prepare for future rate rises.”
Separate research conducted following the rate hike found that owner-occupiers are becoming increasingly likely to fall into mortgage stress, having been at their lowest levels since January 2023 prior to the announcement.
The same research found that even more home owners would fall into mortgage stress should there be another rate hike, an outcome anticipated by three of the big four banks.
Together, the data indicates that while a majority of borrowers maintained higher repayments during the easing cycle, a sizeable minority may face pressure as rates rise again.
Sentiment remains high
Despite dwelling prices rising, forcing Australians to take out larger mortgages, the survey found that determination remained high in 2026.
Waldron said that even amid economic uncertainty and further potential rate hikes, Australians remained determined to pursue property ownership, with 42 per cent of respondents planning to buy within the next 12 months.
Among those planning to buy property in the next 12 months, 42 per cent intend to purchase alone, 53 per cent with a partner, 4 per cent with family, and 1 per cent with another party.
Waldron said, “Our latest consumer research highlights that despite a complex economic landscape and the possibility of additional rate rises this year, Australians’ property ownership dreams are proving remarkably resilient, with 42 per cent of respondents saying they plan to buy property in the next 12 months.
“In 2025 we saw the cash rate reduce three times before the RBA hit the brakes and held the rate steady at 3.60 per cent. We’ve also seen wage growth slow, and home prices reach new record highs, with national home prices rising nearly 9 per cent over the year. So, I think it’s understandable that more Australians would be looking at their paychecks and property prices and availability to feel more confident about their purchase plans.”
[Related: Western Australia drives national mortgage surge]