<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australians have been forced to dip into their savings accounts as mortgage rates hit new highs, Canstar data shows.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It comes as the amount of money lent to borrowers in mortgages rose to a new high, increasing by $17.7 billion in June on the back of two interest rate cuts.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The residential mortgage market went into overdrive in June, fuelled by the two cash rate cuts in February and May," Sally Tindall from Canstar said.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/father-chris-riley-dead-australia-sydney/2bf439fe-59fc-4870-8dc3-c3081ac2506c" rel="" target="_blank" title="Father Chris Riley, founder of Youth Off The Streets dead at 70"><strong><span>Father Chris Riley, founder of Youth Off The Streets dead at 70</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This surge in residential mortgages across the banks mirrors the continued rise in property prices."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As a result, figures from June indicate household deposits – the amount Australians have saved in the bank – dropped 0.74 per cent in the month, the first fall in 12 months, and the largest in more than two years.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/donald-trump-tariffs-australia-spared-import-taxes-usa-politics-news/cf426467-43dc-47d0-a9d5-28dda02ec6c2" rel="" target="_blank" title="The winners and losers of Trump's tariff announcement"><strong><span>The winners and losers of Trump's tariff announcement</span></strong></a></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/aussies-forced-to-dip-into-savings-as-mortgage-costs-balloon-by-17-billion/22a5f509-d47c-4826-aaec-648ca06653f3" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite this, Tindall said the phenomenon is common for this time of year as consumers spend more.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Household savings took a hit in June as people tucked into their savings in order to pay for end-of-financial-year costs," she said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"However, we expect this dip to be temporary, despite the cost-of-living crunch, as Australians remain steadfast in building up their war chests."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Data released by the Australian Bureau of Statistics </span><a href="https://www.9news.com.au/finance/inflation-june-quarter-2025-cpi-interest-rates-reserve-bank-australia/1efbb25f-0c3d-4091-9c9e-f715bec737da" rel="" target="_blank" title="earlier this week"><span>earlier this week</span></a><span> showed inflation had reached its lowest levels since the pandemic, meaning another rate cut is all but certain to be confirmed when the Reserve Bank meets next on August 12.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f"><em><strong><span>DOWNLOAD THE 9NEWS APP</span></strong></em></a><em><strong><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the</span></strong></em><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727"><em><strong><span>Apple App Store</span></strong></em></a><span> </span><em><strong><span>and</span></strong></em><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1"><em><strong><span>Google Play</span></strong></em></a><em><strong><span>.</span></strong></em></div></div>