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7NEWS
2 days ago
- Health
- 7NEWS
Rising energy costs leave Aussies in the cold
Millions of Australians are struggling to afford to warm their homes this winter, according to new research by free comparison website, Finder. The survey found one in eight Australians admit they endure a cold house 'all the time' to avoid a high winter energy bill. Meanwhile, more than 1 in 4 say they try to avoid using their heater 'as often as they can,' despite low temperatures, just to keep a lid on their energy costs. The findings come just a month after Finder's Consumer Sentiment Tracker revealed 29 per cent of Australians named their energy bill as one of their top three most stressful expenses. Australians reported spending $374 on average on their quarterly energy bill in July 2025 - up 13 per cent from $331 in July 2022. Finder energy expert Mariam Gabaji said millions of households are shivering through winter and sacrificing their comfort and health just to avoid another crushing energy bill. "Energy prices have risen sharply, and it's pushing people into impossible decisions - like choosing between heating and putting food on the table," she said. "Going cold all winter isn't just uncomfortable - it can be dangerous, especially for elderly Australians and young children," she added. Gabaji said that for some households the stress of high energy bills can have a ripple effect with some having to go into debt to keep the lights on. Interestingly, one in five Australians indicated it is not cold enough where they live to have to worry about heating their homes. However, for the rest of us, there are some simple steps you can take to save on your energy costs, by maximising heating efficiency, minimising heat loss and shopping around for a better energy plan. To maximise heating efficiency, spend time adjusting or programming thermostat settings, if you have one. Between 18 and 20 degrees is typically ideal, while programming your heating, so that it automatically adjusts temperatures to suit your requirements, will save you even more. Using ceramic heaters to spot heat smaller rooms, and closing doors to areas you are not using, can also save you money, as well as using electric blankets or hot water bottles overnight. For reducing heat loss, close curtains and blinds before sunset to trap heat inside and open them during sunny days to utilise solar heat. You can also strategically place rugs to help insulate floors and prevent cold air from seeping in and seal gaps around windows and doors.
7NEWS
10-07-2025
- Business
- 7NEWS
1.2 million borrowers still at risk of mortgage stress, as RBA holds rate
As Australians recover from the Reserve Bank's shock decision to hold the cash rate this week, a new survey has found recent rate cuts have provided some relief for mortgage holders, with the proportion of households under mortgage stress decreasing in recent months. The survey of 1000 people by comparison company Finder revealed the number of borrowers who spend more than 30 per cent of their after-tax income on mortgage repayments has fallen from nearly 50 per cent in February to just over one-third. The definition of mortgage stress is when a large portion of your income - typically 30 per cent - is spent on your mortgage, leaving little for everyday expenses and unexpected costs. The latest analysis by Finder revealed 37 per cent of homeowners are spending more than 30 per cent of their household income on mortgage payments, compared to 47 per cent in February. That's 1.2 million borrowers who are still at risk of mortgage stress - down from 1.55 million earlier this year. Finder's most recent analysis showing almost one in five (19 per cent) spend more than 40 per cent of their household income on mortgage repayments. Even more startling is that seven per cent of borrowers are spending more than half of their income on home repayments. Meanwhile, Finder's Consumer Sentiment Tracker reveals 13 per cent of households have missed at least one mortgage repayment in the past six months. Despite the shocking statistics, Finder home loans expert Richard Whitten, says mortgage holders are under significantly less financial strain since the rate cuts in February and May. "The loan to income ratio is improving with thousands of homeowners getting relief when they need it most," Whitten said. "This shift marks a turning point - for the first time in years, many households are finally able to breathe financially," he added. The survey found two thirds of borrowers (63 per cent) are now spending less than 30 per cent of their income on mortgage payments, compared to 53 per cent in February. While the average Australian mortgage holder spends 28 per cent of their after-tax income on their mortgage - just below the recommended threshold of 30 per cent. However, Whitten was quick to add that many households will be relying on further rate cuts to ease financial pressure. "Low mortgage stress doesn't mean everyone is suddenly flush with cash," he said. "While the two rate drops so far in 2025 have provided some relief month to month, many families are still living pay cheque to pay cheque. "The fact that over a million borrowers are still stretched shows we're not out of the woods - but the worst may be behind us," he said. Whitten encouraged borrowers to explore refinancing as lenders drop their rates. "Refinancing to a cheaper loan could put hundreds of dollars back in homeowners' pockets each month - a simple move that can ease pressure and keep repayments on track," he said.
Herald Sun
07-07-2025
- Business
- Herald Sun
Experts divided: Cost-of-living crisis or housing havoc?
Has the cost-of-living crisis finally ended? Some of Australia's top finance and property experts certainly think so. Finder's latest RBA Cash Rate report, which surveyed 34 experts and economists on future cash rate moves and other issues relating to the state of the economy, showed 88 per cent (30 out of 34) respondents believe the RBA will cut the cash rate tomorrow, bringing it down to 3.60 per cent. On the topic of cost-of-living, almost half of experts (44 per cent) said they believed the crisis was over. In comes as the amount Aussies are saving each month – $932 – reached an all-time high in June 2025, up from $614 in June 2023, according to data from Finder's Consumer Sentiment Tracker. MORE NEWS When is the next RBA rates meeting in 2025? Shock salary you now need to buy a home Little-known rule could save you $800 Finder's data shows mortgage stress is also at a two-year low – down to 34 per cent. Despite higher average savings rates, Stella Huangfu from the University of Sydney noted that many were still doing it tough. 'Finder's research reveals that 43 per cent of respondents have less than $1000 in savings, and 18 per cent have no savings at all,' she said. 'Additionally, the cost of essential goods and services remains high. 'Experts predict that grocery prices are unlikely to decrease in 2025, and real household disposable income has declined by nearly 10 per cent since its peak, indicating that many Australians are still struggling to keep up with living expenses.' Graham Cooke, head of consumer research at Finder, said while some Australians were gaining financial confidence, others were barely scraping by. 'Whether the cost of living crisis is over really depends on who you ask,' he said. 'While Finder's Cost of Living Pressure Gauge shows that cost pressures are easing, rents are still sky-high and relief is being more directly felt by homeowners. 'The property class divide in Australia is widening.' However, Jakob Madsen from The University of Western Australia said the crisis was not as large as many believe. 'I think the so-called cost-of-living crisis is blown up and clearly not of the scale we saw in the 1970s and 1980s,' he said. 'Most remuneration is indexed to consumer prices, so the standard of living has not changed much. 'The exception is some rentiers and new entrants into the housing market have experienced marked increasing costs. But this is all caused by the escalation of house prices, not a general increase in the real value of pensions and wages.' Kyle Rodda from said the cost-of-living crisis was basically a housing crisis. 'If you rent, things are tough. If you are leveraged to your eyeballs on your home, things are tough. 'Given the housing problem is supply driven and there's not much being done to address that, then the 'crisis' is likely to continue.' Adj Prof Noel Whittaker from QUT pointed to a growing wealth divide. 'We are living in very much a two-tier society, and the gaps between the haves and the have-nots appear to be widening,' he said.
Yahoo
13-06-2025
- Business
- Yahoo
Grim $215 revelation exposes bleak reality for millions in Australia: 'It's crazy'
Millions of Australians have little to no financial backup, as new data has revealed the startling amount in people's bank accounts. Finder's Consumer Sentiment Tracker found the average Aussie had about $33,345 sitting in an account. However, 43 per cent of people who responded to their survey, equivalent to 9.2 million Aussies, said they had less than $1,000 stashed away. The average amount of that cohort was just $215. Finder also discovered 18 per cent of people, or 4.3 million individuals, had absolutely nothing. Average amount Australians have stashed in savings by age revealed ATO, Centrelink warning over $100 million Powerball lottery win Centrelink cash boost coming from July 1 for millions of Aussies Many who were in the sub $1,000 club expressed that the cost of living in Australia was holding them back from being able to get ahead. "It's really expensive," a 59-year-old with just $19 to his name explained to loan company Coposit. "Food has gone up from $150 a week, and now it's like $300... it's crazy. A loaf of bread went from $1.85 to almost $3, [it's] doubled in the last 12 months.""Living out of home at 24 is very expensive, and I'm a student, so I'm only working part time," a Sydney resident, who had $600 in her account, said. "[Renting] makes it even more difficult to save that money, because there's no backup." A 22-year-old said he was "broke" mainly because of rent and spending too much money on nights out. "Sydney, is expensive... you can go get a s**tbox apartment for $300 a week... that's like, heaps, right?" he said. "One bedroom, and you got a sink that doesn't work. Laundry doesn't work, you know? It's just too pricey. But I also go out too much and drink too much." Another 24-year-old from Germany who is living in Sydney said rent was her biggest wallet drainer, as she only had 67 cents in her savings account. A 77-year-old former music promoter who worked with bands like Men at Work and INXS had zero savings. Despite that, he didn't seem to be too glum about his financial situation. "Spend your money," he said. "You can't take it with you. You've got a million dollars when you die or no money, having no money's better." Findex financial adviser Jess Bell said a good savings goal was to have three months' worth of income stashed in your rainy day fund. "That's at least comfortable to provide for emergencies,' she told Yahoo Finance. 'You need to make sure you have emergency funds to provide for those contingencies that just come out of the blue. "It's making sure that you allow for when things go wrong, because they can go wrong.' Here's how much the average Australian has in savings by age, according to Westpac data, with both the mean and median amounts listed: 17 and under: $4,769 and $1,135 18 to 24: $13,069 and $2,410 25 to 29: $19,165 and $2,200 30 to 34: $21,394 and $1,104 35 to 44: $29,769 and $811 45 to 54: $52,836 and $1,429 55 to 64: $87,891 and $5,316 65 to 74: $101,004 and $15,829 75 and over: $130,597 and $31,424Sign in to access your portfolio
Sky News AU
23-05-2025
- Business
- Sky News AU
Aussie home buyers buoyed by RBA's recent interest rate drop, but prospect of future cuts could lead to price rises, Finder expert says
Forecasts that more RBA rate cuts are to come could deter homeowners from putting their house on the market just yet and lead to price rises, an expert has said. The claim follows research carried out by comparison website Finder after the Reserve Bank of Australia delivered its second rate cut of 2025. The cash rate now sits 0.5 per cent below its 2024 level, driving the appetite for property purchases as mortgage rates reduce. Finder's Consumer Sentiment Tracker showed 36 per cent of Aussies felt now is a good time to purchase property, up from 29 per cent in May 2024 and 25 per cent in May 2023. Millennials and Baby Boomers were most encouraged by the news with two in five saying now is a good time to buy. Finder money expert Richard Whitten said demand will heat up as borrowing costs fall; however, this could cause a house price spike for the Aussies desperate to break into the market. 'This could mean prospective buyers have less flexibility when negotiating a price as demand spikes,' Mr Whitten said. 'The forecast to cut the cash rate two more times by Christmas will improve sentiment even more. 'Some homeowners might be holding off putting their property on the market until interest rates fall further, which means fewer properties available to buy, propping up prices.' House prices in Australia rose 3.2 per cent in the year to April 30, according to CoreLogic, and have jumped more than 40 per cent over the past five years. The relatively low price rises over the past 12 months could be a thing of the past due to the boost in consumer confidence from the rate cuts, Mr Whitten said. 'The latest cash rate cut is expected to bolster consumer confidence further in the housing sector, as lower borrowing costs make property investment more accessible,' he said. 'The reduced cost makes real estate a more attractive asset class.' Finder's analysis of data from the Australian Bureau of Statistics showed the number of owner-occupied loans issued rose 4.1 per cent in May compared to a year before, while the average home loan size grew 8.3 per cent to $659,920. Commonwealth Bank of Australia and Westpac are each expecting two more 0.25 per cent interest rate cuts in 2025 to bring the cash rate down to 3.35 per cent. ANZ expecting two consecutive cuts, bringing the cash rate to 3.35 per cent in August, while NAB expects three cuts for a terminal cash rate of 3.1 per cent in November.
