A recent survey commissioned by Youi found Australians waste about $165 each month on items they consider unnecessary, a habit that could add up to tens of thousands of dollars in mortgage interest.
Among the 1,071 respondents, 93% said they waste at least some money each month. Half of those surveyed estimated their unnecessary spending at $100 or more, and one in four reported waste of $200 or more.
Impulse online shopping topped the list of money-wasting habits, chosen by 51% of participants. Takeaway orders followed closely at 49%, while 48% pointed to subscriptions they rarely use.
Convenience also drives discretionary purchases. The survey showed 59% of Australians buy on convenience at least once a month because they lack time.
Analysis by Savvy, using a 6.5% interest rate on a 25-year principal-and-interest loan, calculated that adding that amount each month could save $66,910 in interest on a $731,000 mortgage, the average new owner-occupier loan size according to Australian Bureau of Statistics data for the June 2026 quarter.
The loan term would shrink by one year and ten months.
Increasing the extra payment to $200 per month would raise estimated interest savings to $79,428 and cut the repayment period by two years and three months.
Even a $50 monthly addition could save $21,796 in interest and bring the loan’s end date forward by seven months.
For a $400,000 mortgage, an additional $165 each month would save $61,844 in interest and shorten the term by three years and two months, assuming the same rate and repayment schedule.
“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,” said Daniel Carter of Savvy. “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.”
Borrowers can generally make extra repayments or use an offset account, where available, to reduce the interest charged on their home loan.
