Aussies are spending an average of $165 each month on items they deem unnecessary, according to a recent survey, which could be costing mortgage payers a heck of a lot over the life of their home loan.
The survey of 1,071 people commissioned by Youi found that approximately half of all respondents wasted at least $100 each month, while a quarter pegged that amount at $200 or more.
Impulse online shopping was the most common expense cited (51%), just ahead of ordering takeaway (49%) and paying for subscriptions that are rarely used (48%).
Analysis by Margin Finance in February reported that this figure sat between $1,000 and $1,500 for 90% of prospective mortgage applicants, contributing to a borrowing capacity decrease of 30% to 40%.
With 93% of Aussies conceding that they wasted at least some cash each month in Youi’s survey, just how much time and money could be saved if those funds were sunk into a mortgage instead?
$165 per month now, $60,000+ per mortgage later
Although it might not seem like a lot when compared to a home loan worth hundreds of thousands of dollars, $165 each month adds up to a significant amount of money overall.
That’s $1,980 each year, meaning it’ll end up being worth $49,500 across a 25-year mortgage term or $59,400 over 30 years.
The key thing to note here is that making extra payments via your home loan’s redraw facility or offset account not only helps you save on interest but also clear your debt sooner.
You can see just how much time and money there is to be saved on home loans of different sizes in the table below:
| Loan size | Monthly repayment | New repayment | Interest saved | Time saved |
|---|---|---|---|---|
| $400,000 | $2,701 | $2,866 | $61,844 | 3 years, 2 months |
| $500,000 | $3,376 | $3,541 | $63,977 | 2 years, 8 months |
| $610,063 (avg. first home buyer) | $4,119 | $4,284 | $65,617 | 2 years, 2 months |
| $731,000 (avg. new owner-occupier) | $4,936 | $5,101 | $66,910 | 1 year, 10 months |
| Calculations based on a 25-year loan term repaid monthly at 6.50% p.a. interest. Average first home buyer and new owner-occupier loan amounts based on ABS data from the June quarter of 2026. | ||||
Putting an extra $165 each month into a $400,000 mortgage at 6.50% p.a. could save you almost $62,000 and clear your debt more than three years ahead of schedule.
It doesn’t even have to be that much, though; smaller sums can still make a world of difference when it comes to your mortgage payments.
Even $50 per month, or just one to two takeaway dinners, can shave close to $22,000 and seven months off the average home loan ($731,000).
| Additional payment | Monthly repayment | New repayment | Interest saved | Time saved |
|---|---|---|---|---|
| $50 | $4,936 | $4,986 | $21,796 | 7 months |
| $100 | $4,936 | $5,036 | $42,212 | 1 year, 2 months |
| $150 | $4,936 | $5,086 | $61,385 | 1 year, 8 months |
| $200 | $4,936 | $5,136 | $79,428 | 2 years, 3 months |
| Calculations based on a 25-year loan term repaid monthly at 6.50% p.a. interest. Average new owner-occupier loan amounts based on ABS data from the June quarter of 2026. | ||||
Meanwhile, for the 25% of survey respondents who estimated their monthly wasteful spending at $200, they stood to gain almost $80,000 in potential interest savings.
The importance of the bigger mortgage picture
Perhaps the biggest factor behind convenience spending is simply as a time-saving measure, with 59% saying that they don’t have the time to organise everything themselves.
However, when a mortgage comes into play, it’s always best to keep one eye on the bigger picture, according to Savvy mortgage broker Daniel Carter.
“Making non-essential or convenience purchases shouldn’t need to be cut out entirely for most Australians to make a difference on their home loan,” Mr Carter said.
“With cost-of-living creep continuing to keep a tight grip on the finances of Aussies across the country, it’s important for many to treat themselves every once in a while.
“However, it’s still important to take stock of your spending habits and see where you can make life easier for your future self.
“Cutting back on takeaway or online shopping by half, a third or even a quarter each month where you’re able to do so mightn’t be exactly what you want, but it could deliver savings to the tune of tens of thousands across the life of your mortgage.”
