Lock In Your Repayments, Unlock Financial Freedom

By Sanna Tammila, Director & Principal Finance Broker – Clear Sky Finance

Today, the Reserve Bank of Australia announced a 25-basis point cut to the official cash rate, giving homeowners across the country some much-needed breathing room. For many, it means lower monthly mortgage repayments. But what if you could do more than just pocket the savings?

Here’s a strategy that could save you tens (or even hundreds) of thousands over the life of your loan: Keep your repayments the same.

Yes – even though you could pay less, maintaining your existing monthly repayment could be one of the most powerful financial decisions you’ll ever make.

Let me explain why – and show you how it’s worked for our clients.

Meet Tom and Lisa – Clear Sky Clients:

Tom and Lisa wanted to live debt-free.

Clear Sky consolidated their loans and credit card debt into one simple monthly repayment. As a  result, Tom and Lisa will own their home outright 9 years earlier and save over $135,000 in interest.

Here’s how they did it:
They had:

• $480,000 mortgage at 6.39%
• $42,000 in personal loans and credit card debt

Their total monthly repayments looked like this:

• Mortgage: $3,100
• Other debts: $1,150

Total: $4,250/month

We helped them refinance their home loan and consolidate high-interest debts into one manageable loan at a 5.59% interest rate. Their new monthly repayment dropped to $3,330.
But instead of reducing their monthly outgoings, they kept paying $4,250/month, just as they always had.

By sticking with their higher repayment, they:

• Reduced the principal faster
• Shortened the life of the loan
• Significantly reduced the total interest paid

Meet Ben and Jess – Clear Sky Clients:

Ben and Jess wanted to go on a family holiday.

Thanks to Clear Sky refinancing their home loan, Ben and Jess will pay off their home 4 years earlier, save more than $90,000 in interest, and have $2,400 every 12 months to put towards family holidays.

Here’s how they did it:

They were paying $4,423/month on their $700,000 mortgage at an interest rate of 6.49%, with 30 years remaining. We refinanced their loan to 5.69%, dropping their minimum repayment to $4,056/month. They were saving $367 a month in interest.

Instead of reducing their repayment, they decided to keep budgeting for $4,423 per month.

They split the $367 savings:

• $200 goes towards holidays
• $167 goes towards paying off their home loan faster

By doing this, they:

• Reduced their loan term by 4 years
• Saved over $90,000 in interest
• We’re able to take regular holidays

The Bottom Line:

These examples show that the true value of a rate cut isn’t just the reduced monthly payment – it’s how you choose to use those savings.

By sticking to your old repayment amount, you can:

• Build equity faster
• Free yourself from debt years earlier
• Potentially save six figures in interest
• Put the savings towards holidays, investments, or an emergency fund for peace-of-mind

Want to Know What This Could Look Like for You?

If you’re wondering how to take advantage of the rate cut, now’s a great time to review your options.

Whether you’re interested in:

• Refinancing to secure a better deal
• Consolidating debt to simplify your finances
• Starting a property strategy for long-term growth

…I’d love to help you take the next step with confidence.

About Me:

I’m Sanna Tammila, Director and Principal Finance Broker at Clear Sky Finance. With a background in banking and a passion for helping clients take control of their financial future, I specialise in tailored lending strategies that reduce debt, grow wealth, and deliver peace of mind.
Let’s discuss how we can put this rate cut to work for your financial future. Click here to book a Discovery Call and start making the most of the savings.

Information contained in this document is considered to be true and correct at time of publication. In addition, the information provided is general information only, and does not take into account any individuals’ objectives, financial situation and needs. Before acting on any information contained herein, you should consider the appropriateness of the advice having regard to your personal objectives, financial situation and needs.