Mortgage holders adding years, thousands of dollars of debt to home loans

Stressed mortgage holders are adding extra years and extra debt to their loans as they battle to make monthly repayments, new research shows.said in a survey of just over 1000 respondents, 13 per cent of mortgage holders had extended their home loan in the past 12 months in order to lower their repayments.

Whitten said even a small increase in the length of a loan term could add up to big differences in interest over the life of a home loan.The average loan size in Australia is $625,050, according to ABS data. For a borrower with a $1 million mortgage, the interest soars from $1,156,066 over the life of a 30-year loan, to $1,391,980 over 35 years.Whitten encouraged those who extended their loan to look at ways to pay their debts down faster when they can afford to."But if you find yourself in a position to do so down the track, consider putting extra money into your home loan to make up for the costs that come with extending your loan.

Source: Loan Digest (loandigest.net)

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