Aussies trying to get out of debt faster
Almost 90 per cent of mortgage holders are trying to get out of debt sooner with 60 per cent of homeowners opting to make extra repayments, according to a survey.
Research from finder.com.au has found 40 per cent of borrowers committed to making more frequent payments either fortnightly or weekly, instead of monthly.
The comparison website's money expert, Bessie Hassan, said borrowers felt burdened by carrying around a mortgage for 30 years and were going to great lengths to break free sooner.
"Some borrowers feel burdened by the thought that they could be paying off their mortgage in 20 or 30 years' time if they only pay back the minimum each month — so they're actively looking for ways to lower their balances," she said.
Hassan said it was promising that borrowers had bought within their means and were taking initiative by getting ahead on their mortgage debt.
The survey found women were marginally more likely (90 per cent) than men (88 per cent) to pay down their mortgage fast, while Baby Boomers (18 per cent) were twice as likely as Generation X (nine per cent) to have never tried to pay off their mortgage faster.
The firm said the top five ways Australians were paying off their mortgage faster were through additional repayments, fortnightly instead of monthly payments, using an offset account, rounding up mortgage repayments, and through negotiating a lower interest rate.
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The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
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