From the 1,072 people surveyed in April 2022 - before the RBA increased the cash rate in May - most were already taking steps to mitigate the impact of higher mortgage repayments.

Almost half (47%) said they reduced their living costs; 42% built up their savings; 38% have been making additional repayments; and 37% have been stashing money in an offset/redraw account.

CommBank's Executive General Manager of Home Buying Dr Michael Baumann said that one in two CBA customers are more than three months ahead on their home loan repayments.

"It’s encouraging that the majority of Australian homeowners are taking proactive steps to continue to improve their financial position with rates expected to continue to increase over the next 12 to 18 months," Dr Baumann said.

"We have seen higher splitting activity and a shift to fixed rates in response to the recent cash rate increase as customers explore their options. Since the start of May splitting activity has more than doubled."

RBA data also shows the average variable-rate owner occupier borrower is 21 months ahead on their mortgage - pre-pandemic it  was 10 months.

A rise of 2 percentage points could see the buffer dip to 19 months. 

House prices to fall 10%?

Today, Dr Baumann spoke at the Australian Financial Review Banking Summit, and said CBA forecasts a roughly 10% fall in house prices.

Previously, Westpac chief executive Peter King and chief economist at AMP Shane Oliver both predicted house price falls of 10 to 15% in the next two years.

HSBC's chief economist Paul Bloxham also tipped house prices to fall 10% next year. 

Read more: How much are house prices tipped to fall?

Dr Baumann also said the RBA has a "tricky job", and that a lot of customers will see their fixed rate home loans roll over this year - potentially to a higher interest rate.

"What we’re seeing right now is tightening interest rates will have an impact on the repayment demands for our buying customers, but a lot of people are fixed over time," he said.

"You will see another effect where they moved from a fixed interest rate... we are slightly more conservative when it comes to cash rate increases."

CBA has approximately $89 billion worth of fixed loans rolling off in 2023.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Braden Collum on Unsplash

Ready, Set, Buy!

Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy