Australia's big home loan pay off

While new homeowners may be starting to stir from their slumber, those who already have home loans are racing ahead on their repayments.

New figures by the RBA shows that almost half of Australia's 3 million home loan owners have taken advantage of current low interest rates to get ahead on their mortgage repayments.

According to a report by the News Limited Network, this means that home loan customers are almost 20 months ($40,000) ahead on an average $300,000 loan. 

Of those $300,000 home loans, customers have been paying back up to $266 a month more than they need to according to Westpac chief product officer David Lindberg.

"People are paying down their homes, they're not drawing down on equity to pay for things which was going on during the GFC," said Australian Bankers' association chief executive Steven Munchenberg.

And according to general manager of home loans with Commonwealth bank, Clive Van Horen "It's being driven by a low interest rate environment and homeowners not adjusting repayments down in line with falling rates" 

Homeowners will be able to further maintain their momentum with the Reserve Bank today announcing it will keep interest rates on hold for April, keeping interest rates at their lowest since 1960. 

Those who can't afford to pay more on their repayments should consider seeking a mortgage with a lower interest rate. Continuing to make the same monthly repayments on a lower interest rate could see them also racing ahead on their repayments and potential saving thousands of dollars in the process. Find the best interest rate home loans.

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