Home-owners will make the biggest savings from the interest rate cuts by maintaining their mortgage repayments at the pre-cut levels. Mortgage broker Louise Lucas of The Property Education Company says borrowers who do this can get ahead of their payments and save money long-term.

Following the two recent rate reductions, most variable rate home mortgage holders are set to save more than $100 a month, says Sally Tindall of comparison site RateCity. “For many, it’s money they can spend paying off the winter electricity bills, buying groceries or on extra mortgage repayments,” she says.

But for those looking to make the most out of the recent cuts, it’s an ideal time to pay down their loan faster, says Steve Mickenbecker of comparison site Canstar.

The average variable rate listed by Canstar of 4.13% will have monthly repayments of $1,979 on a $700,000 mortgage over 30 years, he says. Before the two interest rate cuts, the typical rate was 4.3%. Anyone who maintains their current repayments would save more $13,383 in interest and pay off their loan 14 months sooner.