Holding home loan payments steady

Friday 24 April 2009

Article by Mozo

Although speculation continues over whether the Reserve Bank’s spree of interest rate cuts has come to an end, consumers can make the most of previous cuts by maintaining their old home loan payment levels, one financial adviser claims.

Speaking to the Sydney Morning Herald, Melbourne-based financial planner Julian Place said that he and his clients are shaving months off their home loan repayment terms by paying off the same amount as they were when interest rates were around the seven per cent mark.

"I haven’t had any clients saying: ‘We’re reducing our repayments now so we can have more cash in hand.’ They’re just doing what they’ve always done," he commented.

A spokesperson for NAB added that 90 per cent of its customers are keeping their repayments at pre-rate cut levels.

Elsewhere, forecaster Credit Suisse has announced this week that the Reserve Bank will make more interest rate cuts before 2010 gets underway.

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