It is widely reported that Australia's home loan interest rates haven't been this low in more than 60 years.
So what does this mean for you and your hip pocket?
Simply put, historically low interest rates help make the cost of borrowing more affordable.
In other words, when you make your regular principal and interest mortgage repayments, a smaller portion of your repayment goes towards the interest charged on your loan because the interest rate you are being charged is now so low.
According to data from Mortgage Choice's 2016 Money Survey, 38% of Australian mortgage holders are contributing more than 30% of their income towards their mortgage repayments – down from 42% in 2015.
This data would suggest it is now easier for Australian borrowers (financially speaking) to repay their mortgage. This opens up a great opportunity for more people to overpay on their mortgage and grow the equity in their property.
The equity you have in your property is the difference between what your home is worth and what you owe on it.
For example, if your home is worth $300,000 and you owe $100,000 on the property, you have $200,000 in equity.
This equity can then be used to fund home renovations or even purchase an investment property.
If you would like to know how much equity you have in your property and what you can do with this money, speak with your local Mortgage Choice home loan expert today or call us on 13 77 62.