The eye-watering profit your bank makes from your mortgage

Banks raking in six-figure loan profits, a $500 super deadline looming, and Gen Z shaking up investing. Here are five money stories you shouldn't miss this week.

How your home loan delivers banks six-figure profits

Research by The Australia Institute reveals the big four banks rake in about $228,900 profit over the 30-year life of an average $736,000 home loan.

In the first year alone of an average first homebuyer loan, the big four banks make about $11,110 profit.

As a guide to how profitable home loans can be, the banks' profits last financial year grew to $43 billion - $16.9 billion of which came straight from owner-occupiers with a mortgage.

Dr Richard Denniss, co-CEO of The Australia Institute, says, "These numbers are obscene. Rising interest rates and rising prices are hurting Australians. But you know who's not hurting and who never hurts? The banks. While so many Australians are going backwards, the banks' profits are only going in one direction - up."

He adds, "No other companies make anything close to the profits the big four banks are taking from mortgage holders."

What can homeowners do?

The Australia Institute notes that profit margins on home loans are lower at many of the smaller banks, so it's worth shopping around.

A 1% rate difference on a $500,000 loan can mean an interest savings of close to $5000 in the first year alone.

Less than a month left to grab this $500 retirement top-up

The countdown is on to June 30, and that means low to middle income earners have less than four weeks to take advantage of super co-contributions.

If you make a personal (after-tax) contribution to your super fund before June 30, and if you qualify, the government will contribute up to a maximum of $500 when you contribute $1000.

If your income is less than $47,488 you get the full $500 co-contribution but you may still be eligible for a smaller contribution even if you earn up to $62,488.

You don't need to apply for government contributions. If you're eligible and your fund has your tax file number, it gets paid automatically.

The surprising ways young Australians are building wealth

A survey by fund manager Vanguard found nearly one in two Gen Zs (18-28) own investments. But it's the diversity of investments they hold that's particularly impressive.

Only one in four (27%) of all Gen Zs hold shares, compared to around one-third of each of the Millennials (29-44), Gen X (45-60) and Baby Boomers (60-plus).

However, younger Australians are more active across a variety of other investments.

Nearly one in five Gen Z Australians report holding ETFs, 18% own cryptocurrencies, and 4% own listed investment trusts - making this generation the keenest investors across these three products.

Among non-investors, more than half of Gen Z (52%) say they are interested in starting to invest, well above the overall average (34%) and those aged over 60 (18%).

$50,000 a minute, how fast billionaire wealth is growing

The collective wealth of Australia's billionaires surged by $25.67 billion over the past year - that's almost $50,000 per minute according to Oxfam Australia analysis of the 2026 Australian Financial Review Rich List.

Australia now has 178 billionaires, up 17 from last year - the most billionaires on record.

Looked at another way, the 20 richest Australians hold more wealth than the bottom three million households.

Jennifer Tierney, Oxfam Australia chief executive, believes the reforms to capital gains tax and negative gearing announced in the Federal Budget are "important steps towards a fairer tax system", but she is calling on the federal government to tackle inequality by taxing the super-rich.

Iron ore magnate Gina Rinehart topped the Rich List for the seventh year running, with wealth of $39 billion.

Average household wealth in Australia is around $1.560 million.

Renovation costs are easing, but not for long

Australians love a renovation project, and NAB reports a 16% jump in demand for renovation loans nationally, topped by a 25% increase in Queensland.

Building costs have come off recent peaks, however NAB economists say rising fuel prices could push renovation costs up, especially for materials and transport.

With costs potentially becoming less predictable, NAB Executive Home Lending, Denton Pugh, offers several tips to help homeowners manage renovation costs:

• Build a buffer into your budget - setting aside a 10-20% contingency can help manage unexpected increases.
• Lock in quotes where possible - understand which costs are fixed and which may move with fuel or supply chains.

• Plan around available materials - choosing materials that are easier to source can reduce delays and cost blowouts.
• Avoid starting too early - waiting until key materials are on site can prevent costly delays.

Pugh says it can also help to focus on energy-efficient improvements that may help lower bills over time.

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