9 Ways the Latest Rate Cuts Can Save You $10,000 a Year
Interest rate cuts are finally giving homeowners breathing room—but how you use the savings can make a big difference.
3 min
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
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With US$40 million already committed, the Global Talent Fund is attracting investor attention with a strategy focused on building globally scalable consumer brands alongside high-profile talent.
2 min
A new investment fund targeting celebrity-founded consumer brands has secured US$40 million in commitments and is rapidly approaching its US$50 million fundraising target, signalling growing investor appetite for alternative opportunities beyond traditional asset classes.
The Global Talent Fund, which has a maximum raise of US$100 million, focuses on building and investing in consumer businesses alongside celebrities, athletes, and influential personalities who play an active role as co-founders rather than simply endorsing products.
The strategy is based on the belief that changes in consumer behaviour, particularly the rise of social media and digital engagement, have fundamentally altered how brands are built and scaled.
GTF founding partner Jeremy Hunt, who is helping lead the fund’s strategy, said consumers increasingly feel connected to personalities they follow online and are more willing to support products developed by those individuals.
“Consumers are searching for content to engage with, and when a celebrity they like or follow takes them on the journey of creating a product or brand, they genuinely feel part of that process,” he said.
The fund is targeting high-growth consumer sectors including wellness, hydration, beauty and recovery, areas Hunt believes continue to benefit from strong global demand and ongoing innovation.
Rather than backing celebrity endorsement deals, the fund is seeking businesses where talent is deeply involved in product development, brand creation and long-term growth.
According to Hunt, authenticity remains one of the biggest differentiators between successful celebrity-backed brands and those that fail.
“The consumer can see clearly if someone is simply being paid to promote a product,” he said. “The winners are typically the brands where the celebrity has genuinely helped build the business from the ground up.”
The model has attracted support from several prominent Australian investors and business families, reflecting broader interest in alternative investments with global growth potential.
Hunt said consumer brands offered a level of tangibility that many investors found appealing.
“Consumer brands are what we touch, feel, smell and taste every day,” he said. “Our investors understand the growth potential in the model, but they also want to be part of the journey.”
The fund’s rapid progress towards its fundraising target comes amid growing recognition that celebrity influence, when combined with strong commercial execution and scalable business models, can create significant enterprise value.
With several high-profile celebrity-founded businesses generating billion-dollar exits in recent years, supporters of the strategy believe the opportunity remains in its early stages.
For more information, contact marc@kanerbridge.com.au
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