The average Australian household is almost four years ahead on their mortgage payments, with a massive $50 billion funded into offset accounts over the past two years.

Economist and managing director of Market Economics, Stephen Koukoulas, says it’s “a function of the fact that we’ve had interest rate cuts”.

“This has led to this incredible overpayment, this buffer of people reducing their mortgages really rapidly,” he told Emily Power and Jimmy Bartel, filling in for Ross and Russel.

Mr Koukoulas says the data reveals rate hikes are unlikely to stretch households too much in the near future.

“The numbers … show that people do have a buffer,” he said.

But Australians are being pinched in other areas, with high prices for petrol, food, and insurance products.

“While we may be saving on our mortgage with these wonderful interest rates … we are being pinched elsewhere with our regular day to day spending,” Mr Koukoulas said.

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