With interest rates being at an historical low, we asked Leah Anderson, from Leah Anderson and Associates, to give us some tips on how people with a mortgage can make the best use of the cuts.
Leah’s tips include the suggestion to not lower repayments. Instead keep them the same, using the additional funds to pay off your mortgage sooner. News.com.au suggest that by using a strategy such as this, the average homeowner could save $11,160 in interest and pay their mortgage off 13 months sooner.
Leah also suggested talking to your lender and asking for a better deal, compare your home loan with others being offered, by your lender and others in the market, and talking to a mortgage broker to make sure you are getting the best deal possible.
Here’s our interview with Leah:
A tip from the go go team is to use this rate cut as an opportunity to pay off your loan quicker and consider making fortnightly or weekly repayments, rather than monthly to make even further inroads into your mortgage.
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