It doesn’t have to take 30 years to pay off your loan

There are several ways you can reduce the time it takes to pay off your loan and reduce the interest you pay.

Here are some money saving tips to help you pay off your mortgage sooner:
  • Divide your monthly payment by two and pay this amount every fortnight – this will mean you are paying an additional months repayment every year and can easily take up to 4 years off your loan term and save you thousands in interest
  • Use bonuses and lump sums to pay your mortgage down sooner
  • Consider using an offset account – talk to your broker about the benefits of this

Think hard before reducing your repayments or taking a repayment holiday so you understand fully what impact it will have on the overall cost of your loan
Talk to your broker about a home loan health check and refinancing as there may be a lower rate available that would suit your circumstances and you could save thousands

Increase your loan repayments – on a $450,000 variable loan over 30 years, if you increase your monthly repayment by $100 (the cost of a daily coffee) you could save an estimated $36,945 in interest and take 2 years and 6 months off your loan term