Keep repayments high to bring interest costs down
A borrower with an average $300,000 mortgage who maintained their high repayments over the last three months as standard variable mortgage interest rates have fallen from 9.6 per cent to 6.82 per cent could save hundreds of thousands of dollars in interest charges. If that borrower maintains their monthly repayments at their high August level of $2,544 instead of reducing them to the minimum required repayment now of $1,960 they will save $200,000 in interest over the life of the loan. Borrowers can call their bank or lender to request that their repayments remain the same when future rate cuts are announced.
Source: The Australian