WHILE last week’s Federal Budget did little for housing ability, one industry group said the announced tax concessions will help.
New calculations from mozo.com.au show the seemingly modest weekly savings can make a huge difference if used wisely.
Low and middle-income earners will receive a tax cut which will see those receiving the maximum benefit better off to the tune of around $10 to $11 per week. For a couple with two taxable incomes, funnelling $20 extra into the mortgage each week could deliver almost $19,000 in interest savings over the life of the loan, wiping one year off loan repayments.
“For the average Australian, a weekly saving of $10 might seem pretty paltry in the grand scheme of things, but our analysis shows that putting this small windfall to good measure can yield sizeable dividends,” Mozo Director Kirsty Lamont said.
“Many don’t realise even putting away an amount as small as $10 into their mortgage every week can add up to huge savings over the life of the loan.”