More than two-thirds of homeowners are ahead of their mortgage according to CBA research. Of 1.8 million home loan borrowers, 68% are ahead of their mortgage repayments, by an average of seven payments.
Assist Finance chief executive Jason Di Iulio said the increased focus on debt repayment and savings illustrates that people are nervous about the economy and their jobs.
“They are reducing debt at the expense of luxury spending.” He says the trend of maintaining mortgage payments at the same level even when rates are cut is a smart move.
“It will reduce debt faster and take real advantage of the rate cuts. If you have non-income-producing debt, you should be paying it off as fast as possible, which will benefit you later in life.”
Source: Broker News
