Aussies far ahead on their mortgsge
The latest Reserve Bank of Australia Review reports that average mortgage prepayments are now up to around 17 per cent of outstanding loan balances. That is equivalent to two and a half years of scheduled repayments at current interest rates.
Being ahead on repayments gives borrowers lots of options and a buffer if financial hardship hits. Being ahead on mortgage repayments also means that borrowers are saving plenty of money on interest charges.