Maintain payments to 'slash your mortgage by up to $52,000'

Consumers are being advised to maintain their existing mortgage payments in order to save thousands in the long run.

Providing all lenders pass down the Reserve Bank of Australia's 25 basis point cut, consumers will be handed a unique opportunity to save money, according to the Sydney Morning Herald.

It is claimed that the rate reduction could cause monthly repayments on a $100,000 loan to fall by $17 and repayments on a $250,000 loan to reduce by $43.

However, the newspaper has suggested that mortgage owners in it for the long haul should keep their mortgage payment levels the same.

A $43 overpayment on a $250,000 mortgage will save consumers $17,000 in loan interest over the course of a typical mortgage while a $86 overpayment on a $500,000 mortgage could cut the headline figure of your loan by almost $35,000.

Australians that make a $129 overpayment on a mortgage worth $750,000 could find themselves just under $52,000 better off over a 25-year term.

The publication added that the following actions would see you repay your loan a whole year early and are only based on a 25 basis point cut; a full one per cent fall could see consumers save $147,773 on a $750,000 loan by keeping their repayments the same.

On September 2nd, the cash rate was lowered by the central bank by 25 basis points to seven per cent.

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