Pay Off Your Home Loan Sooner

Paying off your home loan sooner not only reduces your mortgage term but can significantly save you a lot of money on interest. This doesn't have to become a huge drain on your cash flow small repayments as well as a clever set up can make a huge difference.

1. Review your loan – Depending on the economic trend and where we sit on the property cycle banks are ever competing to hold the lowest rates. Have a mortgage broker review your loan every 12 months or so to make sure you’re not missing out.
2. Have an offset account – An offset account acts much like a transactional account which is linked to your mortgage and when you deposit extra fund into the account it will decrease the loan balance. This in turn reduces the balance interest is calculated on, saving you interest.
3. Repayment frequency - For example, some home loan fortnightly repayments are decided by dividing the monthly repayment in half and then repaying every two weeks. By doing this, you end up paying the equivalent of one extra monthly repayment each year.

If you would like to find out more please get in contact with us.