Now is the time to aggressively make mortgage repayments: Smartline

Those with mortgages are being told that they should act quickly to get ahead, with interest rates currently at a stable low and additional payments having a significant effect, according to Smartline Personal Mortgage Advisers.

Smartline’s executive director, Joe Sirianni, said that paying an extra $100 a week can equate to interest savings of more than $30,000 in five years, and more than $115,000 over the life of the loan.

“With the recent RBA decision to hold the cash rate at 2.5% again, current interest rate levels represent enormous savings to borrowers,” Sirianni said.

"Consequently, there has not been a better time to make additional repayments on your mortgage for 20 years.”

He suggests an ‘aggressive’ approach to repayments as when the interest rates are low they absorb less of the repayments.

“Reduced interest expense frees up more of your repayment to reduce your principal debt,” he said.