RateCity
Prudent Saver
RateCity has identified three types of savers that have a variable home loan. The first is a prudent saver who makes the same higher repayments after interest rates drop. It is a wise strategy to be a prudent saver because when interest rates rise again the prudent saver will not be impacted by the higher repayments. This is because the prudent saver is already paying an even higher rate each month.
Also, by the time interest rates are on the rise once again, the prudent saver would have reduced their loan debt therefore making their repayments drop. If you take up the prudent saver strategy you can potentially save over $100,000 off your home loan and reduce the loan size by years, depending on the extra amount you add each month.
The table below displays todaya??s best home loans offered by banks.
