To leave your repayments as is or reduce them to the minimum repayment?

We have been getting this question a lot this week – it all depends on your circumstances and cashflow!

If you can afford to keep repayments the same following the February RBA interest rate cut of 25 basis points, you could save almost $47,000 in interest and 2 years on a $500,000 home loan over 30 years at 6% variable interest.

Perhaps the cash flow is more important to you right now and you are looking to reduce your repayments? Generally speaking you will need to adjust these yourselves as many lenders will keep you on the same repayment amount.

Another way to potentially reduce your overall repayments is to look at consolidating some debt. Perhaps you have multiple credit cards and/ or personal loans with high interest rates. You can consolidate these into your home loan (in a separate split over a shorter term, to keep the interest to a minimum).

Please reach out for any advice on your specific situation.

(The material provided here is for information purposes only and is not to be considered financial advice. Please contact your trusted professional for advice specific to your needs.)