With official cash rates at rock bottom, now is the time to get ahead with your home loan. Overpay on your monthly repayments: Just because interest rates decrease, doesn’t mean you need to drop your repayment amount. In fact, why not increase your repayments as if rates were already higher, or alternatively, round up your repayment to the nearest hundred dollars. Just putting an extra $50 on your home loan repayment every month can save you close to $14,000 in interest over the life of a standard loan (based on a loan of $300,000, 5% interest rate and 25 year loan term) . Fix your loan: You can lock in all or part of your loan for the long term so you can enjoy a low rate for years to come. A fixed loan provides security against the uncertainty of rate rises, keeping in mind that if rates […]
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