Recent analysis from the major lender has suggested first home buyers were less likely to reduce their repayments than other borrowers after rate cuts.
First home buyers haven’t been taking full advantage of recent rate cuts, with new analysis from Commonwealth Bank of Australia (CBA) suggesting they were less likely than other borrowers to reduce their repayments after rate cut announcements.
Just 8 per cent of first home buyers with eligible CBA home loans reduced their repayments after the Reserve Bank of Australia (RBA) cut the cash rate by 25 basis points in August.
By comparison, 11 per cent of eligible borrowers in other cohorts reduced their repayments following the August rate cut.
CBA customers aged 31–40 were nearly twice as likely (14 per cent) to reduce their direct debit repayments compared with borrowers under 20 (8 per cent).
Meanwhile, borrowers over 60 were less likely to make changes, with only 7 per cent reducing their repayments.
Across the country, borrowers in NSW and the ACT were most likely to reduce their home loan direct debit repayments (14 per cent), followed by Victoria (12 per cent), and Queensland and South Australia (9 per cent).
Borrowers in the Northern Territory, Western Australia, and Tasmania were less likely to lower repayments, with just 7 per cent choosing to do so.
Speaking to The Adviser, Baber Zaka, CBA’s general manager of third-party banking, said brokers have become increasingly important in helping borrowers understand their loans.
“Mortgage brokers have become increasingly vital in helping property Australians navigate the current lending environment, playing a key role in helping borrowers manage their loans and understand their repayment options,” he said.
“By offering tailored guidance on what a rate reduction means for their clients, brokers can help them make informed decisions that support their long-term financial goals.
“To help brokers assist their clients through a shifting interest rate environment, CBA is investing in targeted educational resources. These are designed to equip brokers with the insights they need to guide customers with confidence.”
Big call
All eyes will be on the RBA today, where it shares its cash rate decision for September-October this afternoon (30 September).
The market has been close to unanimous in forecasting a hold, with all four majors stating they expect the central bank to keep the cash rate target unchanged at 3.60 per cent.
A number of factors have contributed to the market’s view, not least the slightly-higher-than-expected read for the August 2025 monthly inflation data.
CBA currently forecasts one final 25 basis point cut in November, a view shared by Australia and New Zealand Banking Group (ANZ). However, ANZ noted that “there is now a real risk of no rate cut in November”, with the near-term path for rates highly data-dependent.
ANZ believes that once the cash rate reaches 3.35 per cent, it is likely to stay at that level “for a considerable period” and could be the terminal cash rate for this easing cycle.
Westpac is also sticking to its forecast of a November cut (but suggested that the timing is “less certain”), followed by further reductions in February and May.
However, National Australia Bank (NAB) broke ranks last week, stating there would be no change to the official cash rate until May 2026.
Lending incentives ramp up
Given the falling cash rate and an expected surge in mortgage demand as the Home Guarantee Scheme expands this week, many lenders have been rolling out more incentives to attract home borrowers.
CBA recently launched a new Qantas Frequent Flyer points offer for new customers that enables qualifying borrowers to receive up to 300,000 Qantas Frequent Flyer points if they submit an application for a loan of $1,000,000 or more before 30 November 2025.
However, the offer is only available on the bank’s Digi Home Loan and is not available via mortgage brokers.
This comes as the share of new proprietary-originated home loans for CBA (excluding Bankwest and ASB Bank) grew to 67 per cent over the financial year ending 30 June 2025 (FY25), up from 65 per cent the previous year, and amid an overall push from Australia’s largest lender to push more business through its proprietary channels.
Other incentives in market designed to attract home loan borrowers include cashbacks, with around 13 lenders – including ANZ – still offering a cash incentive to mortgagors, according to loan comparison website Canstar.
[Related: Investor lending at the banks surpasses owner-occupier growth]
