Tax windfall can benefit homeowners

Font size :
"Homebuyers have the potential to save tens of thousands on their mortgages and put in place a buffer zone against possible future interest rate rises by making good use of tax cuts and any tax refunds they receive. "Even someone receiving a small tax cut of $10 a week could save more than $20,000 over the life of their home loan by putting this money into their mortgage," Montgomery said. "In the process they are building increased equity in their home, as well as extra funds to draw on if interest rates rise again and their finances get tight." Montgomery noted that some people would need to use the tax cuts to pay for increased fuel costs and to ease the burden of any possible rate hikes. "However, many people will have already absorbed these costs or, in the case of those receiving the benefit of higher tax cuts, will find there is still enough money left over to make an impact on their mortgages. Putting a lump sum of $5,000 into your loan in its early years can save you more than four times that amount over the life of the loan, depending on the loan size," she said. Montgomery added that the end of the financial year is also a good time for homeowners to do a 'stock take' of their loans to ensure they aren't paying more than they need to.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Monday, Sep 25, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords