Are you one of the one in four Australians who is saving thousands by being ahead in your mortgage repayments?
A new study by Mortgage Choice has found that 23 per cent of us are not only up to date with our payments, but have a financial buffer of more than 12 months wages on our mortgage.
With 13 per cent in the same position in 2015, owner of Penrith Mortgage Choice, Rob Lees, is pleased to see an increasing number of Australians building a financial ‘safety net’.
“Australian home owners are feeling pretty confident about their finances and are making financial decisions that reflect this confidence,” he said.
“The survey found that the vast majority of mortgage holders are ‘very comfortable’ managing their debt. Of course, this data is hardly surprising when you consider that interest rates are currently sitting at 60 year lows.”
If you’re not already doing this, Mr Lees said there’s no better time than now to start while interest rates are low.
“The more money you contribute towards your mortgage each month or the more money you have in your offset account, the faster you will pay off your debt,” he said.
“Data from the Australian Bureau of Statistics shows that the average gross wage for an Australian full-time worker is approximately $81,000 a year.”
He said if the average worker was to have their net salary, for example $61,441 sitting in their offset account from day one, they could potentially shave seven years off a $350,000 home loan with an interest rate of five per cent.
“Better yet, they would be able to save themselves more than $153,000 in interest,” he said.
Despite property prices being among the highest in the country, NSW is performing well across the nation, with 26 per cent of respondents stating that they have more than 12 months wages in their home loan.
In Victoria, 27 per cent are in the same position, and Western Australia was not far behind, with 24 per cent, with Queensland and South Australia falling behind with just over 19.8 per cent each.
To find out more about your home loan or financial advice options, call 4721 1733 or visit www.mortgagechoice.com.au/rob.lees.