๐๐ผ๐ฟ๐ฟ๐ผ๐๐ฒ๐ฟ๐ ๐ด๐ฒ๐๐๐ถ๐ป๐ด ๐ฎ๐ต๐ฒ๐ฎ๐ฑ ๐ผ๐ป ๐๐ต๐ฒ๐ถ๐ฟ ๐๐ผ๐บ๐ฒ ๐๐ผ๐ฎ๐ป๐
Despite rising interest rates, the average borrower is making extra mortgage repayments each month.
As this Reserve Bank graph shows, borrowers have an ongoing history of making extra payments into their offset and redraw accounts โ although extra payments declined during the June quarter, due to rising interest rates and cost-of-living pressures.
"While borrowers in aggregate have continued to add to the stock of savings held in these accounts โ partly supported by fixed-rate borrowers transferring savings from other sources when their fixed-rate periods expire โ some borrowers have been drawing on their stocks of savings to help meet mortgage payments and support consumption in the face of declines in their real disposable incomes," according to the Reserve Bank.
On the one hand, itโs a concern to see extra payments fall. On the other hand, extra payments are still being made. Also, the reason borrowers are smart enough to get well ahead of their mortgage during good times is so they have a buffer when times get tough.
Subiaco finance brokers are here to help
Interest rate rises are here, but you donโt have to fear with the right broker on your side.
The team at Sonam Capital are here to empower you through financial knowledge. Weโll take the time to get to know you and your
unique situation and speak in a language you can understand, with strategies you can implement for the best possible outcomes.
Nick, Wayne and Amanda at Sonam Capital are your Subiaco finance specialists.
