Lenders have been dropping their interest rates in recent weeks, and the temptation to lower mortgage repayments is high. But according to the Mortgage and Finance Association of Australia (MFAA), every dollar that households contribute to their mortgage goes a long way.
If you are able to keep repayments up above the minimum instalments, it could potentially shave years off the end of your loan. Any extra one-off repayment like a tax return can also provide a healthy boost to a loan balance, and minimise the overall interest.
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