Keep repayments high to bring interest costs down

A borrower with an average $300,000 mortgage who maintained their high repayments over the last three months as standard variable mortgage interest rates have fallen from 9.6% to 6.82% could save hundreds of thousands of dollars in interest charges.

If that borrower maintains their monthly repayments at their high August level of $2,544 instead of reducing them to the minimum required repayment now of $1,960, they will save $200,000 in interest over the life of the loan.

Borrowers can speak to their bank or lender and request that their repayments remain the same.