Let’s face it. The last 4 years have sucked. But 2024 could be the year you start to pay off your mortgage faster.

Covid and the lock downs were tough. Then inflation and the cost of living got out of control. Houses now cost more than ever before.

Interest rates were super low at the start of the pandemic, then the RBA got all up and about, raising them 13 times.

But did you know, despite all that, 2024 could be the year you start to pay off your mortgage sooner?

How is this even possible, I hear you ask?

Well, let me explain.

Money markets are predicting that there is a 98% probability that the cash rate will stay at 4.35% when the RBA meets next week. And, should inflation continue its downward trend this year, most economist say rates have peaked and looking at a 42 basis points of rate cuts this year. That’s .42% that might come of interest rates over the short to mid-term.

All the big banks agree. ANZ thinks we will be at 3.6 per cent by mid-2025, NAB and Westpac see us at 3.1 per cent by the end of 2025 and CBA at 2.85 per cent by June next year.

If you’re fortunate enough to have been able to manage the 13 rate rises and price of living increases, your mortgage can benefit from the falling rates.

Based on average borrowings, the rate cuts will have $374/month coming off a mortgage in Victoria and $469 in NSW.

If you’ve been managing until this point, it all means you have an enormous opportunity to get ahead on your mortgage. Simply keep your mortgage repayments the same when your rates start to fall later this year.

The additional repayments will come straight off the principal, reducing the interest you pay and the life off the loan. You will be paying extra off a cheaper mortgage.  

For once, you won’t have to do anything to save money on your mortgage.

But if you’d like to check your current interest rate against the market, get in touch and I’ll let you know where you sit.

Contact me today.