ABS and Canstar analysis shows home loans doubled in 10 years
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Recently, the ABS and Canstar did an analysis on home loans costs and have stated that the average mortgage repayment has leapt by 105% over the past 10 years.
What this means is that Australians are paying more than the minimum repayment on their mortgage while their wages only rose by half the increase, 54%.
Over the last couple of years, interest rates have dropped, so mortgage holders are continuing to pay their previous (higher) repayments and in some case more if they are budgeting effectively and using any excess cash to pay on the mortgage.
For those wanting to pay more on their mortgage and pay off their home loan sooner, they need to assess their current budget and determine whether or not they have any excess cash, this exercise is extremely important because you do not want to over commit yourself and end up having no money to pay your bills. If they do, I recommend jumping online and using the free calculators that allow you to input data such as interest rates, mortgage amount and the timeframe you want to pay off the mortgage by. The online calculator will produce some very close estimates such as how much you should pay each month or how long exactly it will take you to pay off your mortgage.
Also if you and your family need debt help and guidance saving, contact Bills to Pay today, for a no obligation FREE consultation on 1300 566 729.