Her approach demonstrates the balancing act many new borrowers face: Building buffers while managing lifestyle and cashflow.
Borrower age and life stage matter
Borrower decisions also diverged across age brackets. The 31-40 cohort was most likely to reduce repayments (14%), while just 7% of over-60s and 8% of under-20s made changes.
This reflects the different priorities of customers in different age brackets – families juggling childcare and cost-of-living pressures may prioritise immediate cashflow, while older borrowers are less inclined to alter long-standing repayment habits.
Regionally, New South Wales and the ACT led the way, with nearly 14% of borrowers lowering their direct debit amounts. Victoria followed at 12%, while Queensland and South Australia both sat at 9%. Borrowers in Western Australia, Tasmania, and the Northern Territory were the least likely to adjust.
Optimistic signs for household finances
CBA’s head of Australian economics Belinda Allen reckoned the data paints a positive picture for household sentiment.