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Aussies dip into household deposits in June as residential mortgages hit new high
01 Aug 2025
Australians dipped into their savings in June, with money in the bank from households dropping by a sizable $12 billion dollars – the first drop in the last 12 months.
Our analysis of APRA Monthly Authorised Deposit-taking Institution (ADI) Statistics for June, released yesterday, shows household deposits dropped by 0.74% in the month, dropping the total amount Australians have saved in the bank to $1.61 trillion.
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| APRA total deposits by households – June 2025 | ||
|---|---|---|
| Amount | Monthly change | Year-on-year change |
| $1.61 trillion | -$11.95 billion
-0.74% |
+$137.52 billion
+9.36% |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, released 31 July 2025, prepared by Canstar.com.au. Deposits from households include term deposits, transaction accounts, mortgage offsets and savings accounts.
A drop in June is not unexpected. This cyclical dip is common as households reach into their savings to buy tax-deductible items, make donations to charity, chip extra into their super and take advantage of the end-of-financial-year sales.
However, if history is anything to go by, this figure is likely to rebound in July, even amidst a cost-of-living crunch, as households use money back from their tax to replenish their savings.
Last year, for example, household deposits dropped by $11.5 billion, while the following month, it rose by a staggering $30.8 billion, despite the fact Australia was in the thick of the cost-of-living crisis.
Savings dip expected to recover
Canstar’s data insights director, Sally Tindall says, “Household savings took a hit in June as people tucked into their savings in order to pay for end-of-financial-year costs.”
“However, we expect this dip to be temporary, despite the cost of living crunch, as Australians remain steadfast in building up their war chests.
“Most Australians are sticking with the big four to house their nest eggs, with the major banks holding 72 per cent market share of household deposits, despite the fact that’s not where the competitive rates are.
“Westpac is the anomaly here. It still offers an ongoing savings rate of 5 per cent – that’s rare as hens’ teeth – but you have to be aged 18 to 29, which unfortunately rules the majority of Australians out.”
Mortgage loan book takes off, fuelled by cash rate cuts
The mortgage market accelerated in June, recording a steep rise of $17.7 billion across all ADIs, spurred on by the two cash rate cuts in February and May of this year. This was the highest monthly increase in dollar terms since June 2021, when rates were at record lows.
CBA led the pack, recording the biggest share of mortgages among the big four banks in both dollar and percentage terms, with its residential home loan book increasing by 6.2% to $593.7 billion in the last year.
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| Loans to households: housing | ||||
|---|---|---|---|---|
| Amount | Monthly change | Year-on-year change | Share of ADIs | |
| CBA | $593.7 billion | +0.80% | +6.2% | 25.3% |
| Westpac | $487.9 billion | +0.51% | +2.3% | 20.8% |
| NAB | $334.7 billion | +0.76% | +4.5% | 14.3% |
| ANZ | $317.7 billion | +0.49% | +5.8% | 13.6% |
| Macquarie | $144.5 billion | +2.31% | +20.5% | 6.2% |
| All ADI’s | $2.34 trillion | +0.76% | +5.8% | – |
Source: APRA Monthly Authorised Deposit-taking Institution Statistics, June 2025. Includes both owner-occupied and investor loans to households for the big four banks and Macquarie. ANZ figures do not include the former Suncorp mortgages.
Tindall says, “The residential mortgage market went into overdrive in June, fuelled by the two cash rate cuts in February and May.”
“This surge in residential mortgages across the banks mirrors the continued rise in property prices.
“CBA led the way in terms of growth, increasing its residential loan book by a staggering $4.7 billion in June, the highest monthly increase in dollar terms in APRA’s records for Australia’s biggest bank.
“The Commonwealth Bank has been recalibrating and diversifying its home loan offerings over the last few years. With a suite of different mortgages designed for customers, whether they’re coming from a broker or direct-to-bank via a branch or online, the new strategy appears to be working.”
Owner occupied
20% min deposit
Redraw facility
Owner occupied
10% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
40% min deposit
Redraw facility
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
