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Home owners with mortgages are increasing their spending more than renters and outright owners, according to the major bank’s latest data.
Mortgage holders are spending more than renters, according to new data from the Commonwealth Bank of Australia (CBA).
Released on Thursday (10 July 2025), the latest CommBank Household Spending Insights (HSI) Index showed an overall 0.3 per cent rise in spending for June 2025.
This marked the third consecutive month of growth, following gains of 0.4 per cent in April and May.
Mortgagors continued to outspend other home ownership categories in per capita terms, with an annual increase of 5.2 per cent, compared to 4.2 per cent for renters.
Meanwhile, owner-occupiers without a mortgage showed the weakest spending growth at 3.5 per cent over the year.
The HSI noted that mortgage holders were the category most likely to benefit from rate cuts delivered this calendar year, while outright owners were less responsive to rate changes.
Renters, who had previously recorded the weakest growth rates, have shown stronger spending in recent months, overtaking outright owners in April and continuing to lift in May and June.
Belinda Allen, CBA senior economist, said: “Homeowners with a mortgage have reduced spending on transport, hospitality, and food and beverage goods over the past year but lower interest rates are expected to boost disposable income in the coming months.
“Renters continue to spend more following an increase in April and May.”
Over the June quarter, the HSI rose by 1.4 per cent, an increase on the 1.2 per cent growth seen in the March quarter.
“Household spending is starting to show signs of consistency month-on-month and should continue to pick up this year as consumers begin to loosen their purse strings,” Allen added.
Allen also noted the major still anticipates household spending to pick up throughout the year, despite the Reserve Bank of Australia’s (RBA) decision to hold rates.
“The RBA’s decision to hold rates at 3.85 per cent in July was unexpected, but we anticipate the RBA to cut the cash rate in August by 25 basis points, with November the most likely option for a follow up rate cut,” Allen said.
“While we still anticipate a pickup in household spending in 2025, a slower rate cutting cycle could soften this recovery over the remainder of the year.”
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