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Home owners trimming mortgage debt

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Home owners are racing ahead on their mortgage repayments thanks to lower interest rates, a survey shows.

Research by the Commonwealth Bank shows half of the lender's home loan customers plan to get ahead on their mortgages by keeping their repayments the same as they were before the latest round of interest rate cuts.

The survey of more than 1,000 home loan customers also found that nearly three quarters were already ahead on their repayments by an average of seven payments.

More than a fifth also plan to use the extra money to help pay off their credit cards and other personal debts.

Some lenders have cut standard variable home loan rates to less than five per cent following the Reserve Bank's surprise interest rate cut in February.

The RBA's cash rate is at a historic low of 2.25 per cent.

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Low rates encouraging people to race ahead on mortgage repayments, CBA survey shows.

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