The long-term impact of interest rate rises has delivered almost half of mortgage holders a hip picket hit reaching well into the tens of thousands of dollars, according to new research.
has delivered almost half of mortgage holders a hip picket hit reaching well into the tens of thousands of dollars, according to new research.
"Making extra loan repayments not only reduces the long-term cost of the loan but also cuts the period of time that borrowers are indebted to the bank and making repayments," Canstar finance expert Steve Mickenbecker said. For a newer borrower with $400,000 owing over 25 more years, the damage is far worse: $94,426 in missed savings and being locked into the loan for four years and nine months longer than what would otherwise have been the case.Making extra repayments is set to get even trickier with the reserve bank tipped to hike the cash rate today.
The 38 per cent of mortgage holders who, according to Canstar, are making extra repayments at the moment could dwindle to an even smaller share of the market, with experts expecting the RBA to hike the cash rate a further 0.25 per cent today.Forty-five per cent of mortgage holders have lost the ability to invest in the strategy due to the cost of living crunch.
"When the Reserve Bank started to hike the cash rate 18 months ago, the banks reported that a high proportion of borrowers would cope comfortably because they had built up balances in offset accounts or available for redraw," he said.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Aussies outraged over Ange-AFL star photoAnge Postecoglou is on top of the football world, but not every Aussie is happy with him right now.
Read more »
67 Aussies remain trapped in GazaAustralians stuck in Gaza are anxiously waiting for their chance to cross into Egypt amid hopes there could be further evacuations over the coming days.
Read more »
‘I’m missing out’: Green’s big reveal as Aussies face enviable selection dilemmaCricket: There were puzzling scenes in India's Cricket World Cup clash with South Africa as Shubman Gill was bowled, yet stood his ground and waited for the review.
Read more »
Aussies could get $40k for job nobody wantsThousands of students will be eligible for scholarships of up to $40k as part of a national bid to lure more people into teaching.
Read more »
Explained: Three-way battle to define World Cup SF race — and how Aussies can avoid IndiaCricket: Virat Kohli has equaled Sachin Tendulkar's record of 49 ODI centuries following his ton against South Africa.
Read more »
Aussies in disbelief at croissant priceA photo of a $14 ham and cheese croissant in Melbourne has perfectly summed up the dismal state of dining out in Australia, sparking a wave of backlash online.
Read more »