Australians fearful they won’t be able to pay off their home loans
New research from ING shows in spite of the fear, most Australians are ahead on their home loans.
ING research reveals 82% of mortgage holders are paying ahead on their home loan most years and 45% expect to pay off their mortgage at least 5 years ahead of schedule.
However, this hasn't allayed Australians' concern about their home loan repayments. 51% of Australian mortgage holders expressed fear that they would never be able to pay off their home loan, while 40% said they were concerned they would carry their mortgage into retirement.
Alongside the research, ING pointed to its digital Everyday Round Up for Home Loans tool that allows the bank's customers to allocate extra money towards their home loan using everyday purchases. The tool rounds up card purchases made through ING's Orange Everyday account to the nearest $1 or $5, automatically shifting the funds to pay down the customer's mortgage.
The bank touted the Everyday Round Up tool as a simple way for mortgage holders to get ahead on their repayments. ING estimated that customers who round up $50 each month would cut 19 months off a 30-year home loan of $350,000 and save $14,000 in interest repayments.
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