Savings add up for home buyers
People taking out loans today need to remember that interest rates will go up again eventually and repayments will rise as a result. Eighty per cent of mortgagees are on variable rate loans.
A borrower with a 25 year, $300,000 loan is saving about $750 per month since the RBA began cutting rates from 7.25 per cent last September to 3.25 per cent now. Before the rate cuts, the borrower was making repayments of about $2,642 and now those repayments would be $1,896.
Source: The Australian