Billions Saved on Mortgages
Australians with home loans saved more than $21 billion in interest payments in 2012, thanks to the Reserve Bank of Australia reducing the cash rate to incredible lows – as low as 3 %.
New Treasury data shows that in Victoria alone, extra repayments worth $5.4 billion were avoided in the 12 month period.
RBA figures, housing credit data from the Australian Bureau of Statistics and the number of mortgages in Australia (4.2 million mortgages worth an estimated $1.26 trillion) were used to calculate this saving. The Treasury figures showed that a person with an average home loan of $300,000 was some $5000 better off in 2012.
Not all Australians have benefited from low interest rates. Pensioners and self-funded retirees, who rely on the interest earned from savings accounts, were particularly negatively affected.
Federal Treasurer, Wayne Swan, who recently admitted that the promised budget surplus would not be delivered, claims that current economic conditions and decisions made by the Government benefit ‘working families’.