Mortgage holders were given a boost today when the Reserve Bank decided to keep interest rates on hold.

While the move is hardly a surprise, it will still be welcome news for people paying off a mortgage.

“There’s always that element of doubt about whether rates will go up or not, so it’s nice to have a hold confirmed,” says Domain.com.au blogger Carolyn Boyd.

Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.

The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.

Mortgage holders wanting to pay down their debt faster should take the opportunity to pay a little more off their loan now. On a new 25-year $370,000 mortgage, if you paid an extra $60 per month, or about the equivalent of a 0.25 per cent rate rise, you could clear your mortgage 17 months sooner and save $30,085 in interest.

For details on what the decision to keep interest rates on hold at 4.75 per cent means for the market, visit the Domain.com.au news section for further analysis.