9 Ways the Latest Rate Cuts Can Save You $10,000 a Year

After years of rising repayments, Australians are finally seeing interest rates ease. February’s 0.25 percentage point cut shaved $76 a month off a $500,000 mortgage repayment, but the total savings could be more than $1,000 a year. With that extra money now flowing through, smart moves can turn small monthly savings into thousands over time.

1. Refinance your loan

Lower rates mean better borrowing power and increased competition by lenders for customers. As such, it’s a great time to consider refinancing.

You could double (or more!) the size of this rate cut – especially if your pay recently increased or your costs decreased, such as no more school fees after a child graduates.

Potential difference: $151.42 monthly savings by doubling the official rate cut to 5.55 per cent on a $500,000 mortgage.

2. Keep repayments the same

Just because rates have come down doesn’t mean you have to pay that new amount.

If you can afford to, keep your repayments the same. The extra amount you’re paying will chip away at the principal loan balance faster, meaning the amount you owe decreases and less interest accrues in future.

Potential difference: $26,588.07 saved over 25 years on a $500,000 mortgage. Over time, the savings would be 2.37 years of interest saved, which is over $60,000.

3. Pay down debts

Falling mortgage repayments mean more money to put towards paying down other debts.

Start with high-interest debts first, such as credit cards or car loans – these balloon quickly if you fall behind and adversely affect your ability to refinance your mortgage or get a new loan.

Potential difference: $151.43 monthly savings by clearing a $1,634 credit card debt with average 20.08 per cent interest rate.

4. Reassess savings accounts

The flip side of falling interest rates is that savings accounts and new term deposits become less attractive.

It may be worthwhile to reinvest your savings somewhere with higher earning potential. This becomes increasingly important the more interest rates fall. You should also consider tax though.

Potential difference: $1.68/month is small, but this also excludes compound earnings investing $76.15 monthly at 7.5 per cent sharemarket returns vs 5.25 per cent in a high-interest savings account.

5. Top up your super

Your superannuation balance will grow faster with more money going in and compound earnings between now and retirement. Plus, there are generous tax breaks for making voluntary super contributions.

Potential difference: $23.00 extra per year (excluding compound earnings and tax savings which is the bigger saving) contributing $76.15 per month at average 8.1 per cent returns.

6. Upskill to boost your income

Extra cash can be used towards study/qualifications to boost future earnings. Or you could start a side hustle that could deliver additional income or even allow you to earn more than your current job pays.

Potential difference: Just a 5% increase on the average $1,396 weekly income delivers an extra $3,629.60 per year. Self-education and self-employment costs are tax deductible too!

7. Invest in yourself

Investing in your health (physical and mental) has longer-term benefits: lower medical bills, fewer sick days, reduced risk of forced early retirement or premature death.

Potential difference: Thousands of dollars and a long, healthy life vs a shorter lifespan and/or poorer quality of life.

8. Boost your emergency fund

It is easier to build an emergency fund – cash set aside for a rainy day – in smaller, regular amounts than big lump sums. Rate cut savings are ideal for this, as you’re already used to living without this money.

Potential difference: Immeasurable if it’s the difference between having money set aside or having nothing, should disaster strike!

9. Donate to charity

If you’re going to spend your rate cut money no matter what, why not donate it to charity.

It will do some good for the world and give you the satisfaction that comes from helping others. Plus, you can claim a tax deduction on donations over $2.

Potential difference: You can receive a refund of up to 45 cents on every dollar donated, depending on your tax bracket.

As the above points show, there are plenty of ways to make rate cuts work even harder for you. The biggest difference will be whether you take action or let the savings flutter away

Helen Baker is a licensed Australian financial adviser and author of the new book, Money For Life: How to build financial security from firm foundations (Major Street Publishing $32.99). Find out more at www.onyourowntwofeet.com.au

Porsche car deliveries fell 10% in 2025 as demand was hit by a slowdown in luxury spending in China and as it ceased production of its 718 Boxster and 718 Cayman models through the year.

The German luxury sports-car maker said Friday that it delivered 279,449 cars in the year, down from 310,718 in 2024.

The company had a tumultuous year as it contended with a stuttering transition to electric vehicles and a tough Chinese market, while the Trump administration’s automotive tariffs presented a further headwind.

Deliveries in its largest sales region of North America were virtually flat at 86,229, but continued challenges in China meant deliveries in the country dropped 26% to 41,938 vehicles.

Automakers have faced intense competition in China, sparking a prolonged price war as rivals cut prices to win customers, while a lengthy property market slump and economic-growth concerns in the country has also led to buyers pulling back on luxury spending.

“Key reasons for the decline remain the challenging market conditions, particularly in the luxury segment, and the very intense competition in the Chinese market, especially for all-electric models,” the company said.

Other German brands including Audi, BMW and Mercedes-Benz have all recently reported that the challenging Chinese market hit demand last year.

In Europe, Porsche deliveries fell 13% to 66,340 cars excluding its home market of Germany, while German deliveries dropped 16%.

The company cut guidance several times last year as it warned of hits from U.S. import tariffs, investments in new combustion engines and hybrid models amid the slow uptake of EVs, and the competitive situation in China.

Porsche also last year announced plans to scale back its EV ambitions and instead expand its lineup with more gas-powered and plug-in hybrid models than it had originally planned.

However, in its statement Friday, the company said it increased its share of electrified-vehicle deliveries in the year. Around 34% of vehicles delivered worldwide were electrified, an increase of 7.4 percentage points on year, with about 22% all-electric vehicles and 12% plug-in hybrids.

That leaves its global share of fully-electric vehicles at the upper end of its target range of 20% to 22% for 2025.

In Europe, for the first time in 2025, more electrified vehicles than purely combustion engine vehicles were delivered.

The Macan topped the delivery charts in the year, while the 911 reached a record high with 51,583 deliveries worldwide, it said.

Porsche said it is investing in its three-pronged powertrain strategy and will continue to respond to increasing demand for personalization requests from customers.

“We have a clear focus for 2026,” Sales and Marketing Chief Matthias Becker said. “We want to manage supply and demand in accordance with our ‘value over volume’ strategy.

“At the same time, we are realistically planning our volume for 2026 following the end of production of the 718 and Macan with combustion engines.”