Would you like an investment property with that?
Since winter 2008 we have seen interest rates drop to levels not seen for over
40 years. This time last year, variable interest rates were published at 9.45%.
On the average loan (see table below), this equates to a saving of around
$1,000 per month. Yes, the average Australian household mortgage is now
approximately $1,000 per month less than it was a year ago (for those on
variable rates).
Other things to consider if you're struggling with your mortgage repayments
On a $300,000 loan at 8.33% the repayments on a principal and interest loan are
$2,381.41, and on an interest only loan they are $2,082.50 saving $300 per
month. Remember that if you choose an interest only loan you will not be paying
any principal off your home, so don't leave it too long before you sort out
your budget and get back to paying off your principal as well.
