How to Pay off Your Mortgage Earlier
The Mortgage and Finance Association of Australia (MFAA) recommends that home owners continue to make higher loan repayments and pay off their homes sooner. Take advantage of lower interest rates: instead of lowering your repayments because the interest rate has dropped, pay off the loan at the same amount, and pay off the loan faster as the loan total reduced quicker. By paying more than the minimum required you quickly reduce the principle.
MFAA chief executive Phil Naylor suggests that unless you are experiencing financial difficulty, mortgage holders should continue making higher loan repayments and can pay off their debt sooner rather than later. Evidence so far from MFAA research shows that anywhere from two-thirds to three-quarters of mortgage holders still prefer to make higher repayments with the aim to pay off their mortgage quicker
Today the Reserve Bank of Australia (RBA) cut official rates by 1 per cent. So far, three major lenders have announced cuts to rates. The Commonwealth Bank was first to respond, and announced they would pass on the RBA rate cut in full, taking their standard variable home loan down one per cent to 6.74 per cent. NAB followed with full 100 basis point reduction making their rate also 6.74 per cent.
However Westpac will only be passing on 80 basis points, bringing their standard variable rate down to 6.91 per cent. A statement from Westpac blamed long-term wholesale funding costs.
|
Find a mortgage broker
Home Loan Research
|
|