About 60 per cent of Australian mortgage holders have decided to create a bigger savings buffer for ‘unforeseen circumstances’ amid recent financial market turmoil, according to independently-owned mortgage broker, Mortgage Choice.

The 2011 Saving & Spending Insights Survey commissioned by Mortgage Choice shows first homeowners felt the pressure most keenly, with 66 per cent saving more for this purpose. Investors were second most likely (63 per cent), followed by next homebuyers (57 per cent) and homebuyer/investors (56 per cent).

Overall, 83 per cent of the 1,009 mortgage holders surveyed over late August and early September said they had saved money in the past year, with the top reasons being for a holiday (53 per cent), to repay their mortgage quicker (45 per cent) and for unexpected changes to their finances (37 per cent).

One quarter managed to put aside more than 20 per cent of their after tax income.

Company spokesperson Kristy Sheppard said, “It’s uplifting to see that despite facing a hefty interest rate increase last November, rising living costs and a flood levy, the vast majority of Australians with a mortgage managed to save money over the past 12 months in addition to meeting their repayments.”

“Recent turbulence in financial markets is clearly influencing borrower attitudes to saving, but although they recognise the need to save for a rainy day, letting their hair down with some time away from work is even more important.”