Up payments to break mortgage chains

Despite a cut in the interest rate, Aussies still need to keep up their home loan repayments to pay off debts quicker.

So claims Aussie Home Loans chief John Symonds, who also says that where possible, repayments should be upped from monthly to fortnightly contributions.

He told the Age that by doing so, the average homeowner could shave up to ten years off their home loan debt.

“Switching to fortnightly means the borrower gets ahead of the game and reduces the principal owing on their loan much faster and saves truckloads of interest payments as a result,” he exclaimed.

He added that following the rate cut, banks are going to be in stiff competition to provide cheap credit cards and low interest home loans, making this an ideal time for Aussies to go searching for a better deal.

Announced last week by the Reserve Bank, the rate cut was the first seen in nearly seven years.ADNFCR-1761-ID-18782137-ADNFCR