Newspaper article Daily Examiner (Grafton, Australia)

Protect Your Nest Egg This Easter

Newspaper article Daily Examiner (Grafton, Australia)

Protect Your Nest Egg This Easter

Article excerpt

FOR many Australians, the Easter long weekend provides the opportunity to have some much needed down time.

But with interest rates sitting so low and speculation mounting that the cash rate could fall again in the coming months, the Easter long weekend also opens up the perfect opportunity for borrowers to spend some time thinking about whether their home loan is working as best as it can for them and their needs.

Local Mortgage Choice franchise owner Julian Collins said that with interest rates at historical lows, any extra money a borrower can contribute to their monthly mortgage repayments makes an even bigger difference than if the same amount of money was paid off on a mortgage with a higher interest rate.

"We are hearing from our mortgage brokers around the country that a large number of current borrowers are not thinking about how to best use the current rate environment to their advantage," he said.

"Making deeper inroads now will make a big difference in interest and time spent repaying the loan.

"Many economists are predicting that interest rates won't rise until at least 2016, though this time frame is certainly not set in stone.

"So, with the future of rates very much uncertain, now is a great time for borrowers to start paying off their mortgage faster while they have the ability to do so."

For those wishing to pay off their mortgage sooner rather than later, there are a few easy techniques borrowers can implement, including:

Refinance your mortgage:

With interest rates sitting at historical lows and Australia's lenders competing aggressively for business through sharp home loan pricing, you may find there is another product on the market that is not only better suited to your needs, but one that boasts a much lower interest rate, saving you thousands of dollars in interest over the life of your loan. …

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