Homeowners using Savings for Mortgage Payments
With interest rates at record lows, homeowners are using the extra money they’re saving to make extra repayments on their mortgages and - if rates keep falling - this trend is set to continue.
In CUA’s national home loans survey, 78% of the participants said they would use the savings from interest rate cuts to make additional repayments on their home loan. 49% said they would put the extra money into a savings account.
Jason Murray is the general manager of products and marketing for CUA, and he claimed that this trend has been around now for some time. As most people tend to leave their repayment amounts the same, the increased excess is putting them further ahead.
He went on to say that the reason behind this sensible use of extra cash could stem from feelings of pessimism about the future.
Others say it’s not just worries about the future that are seeing Aussies pay off their mortgages faster, but is also concerns about employment and future job prospects.