How To Pay Off Your Home Loan Quicker
Updated: Mar 9
Let's face it. No one wants to spend 30 years of their life paying off their home loan. Having a mortgage is one of the biggest financial commitments that anyone can make. Have you ever thought to yourself, "wouldn't it be nice to pay off my home loan quicker?" You've probably then started to become consumed by the thought that it's a difficult process. The fact is, it doesn't have to be. In this post, we will be sharing a few of our favourite tips for home owners to slash the time of spent on mortgage repayments.
We've compiled our four biggest tips for home owners to fast track their home loan repayments.
Change Your Mortgage Repayments To Fortnightly
Many people are currently making monthly mortgage repayments. However, did you know that switching your repayments to fortnightly can reduce the term of your mortgage? This is because you will end up paying an extra month's payment for the year, keeping you ahead of repayments. Switching your home loan repayments to fortnightly can also help you to save tens of thousands of dollars in interest over the course of your loan. This is an additional benefit that will end up keeping your hard earned money where it belongs - in your pocket!
Get An Offset Account
An offset account is a transaction account that is directly linked to your mortgage. This type of account can help reduce the loan term of your mortgage repayments by reducing the amount you pay on your mortgage. It reduces the amount of interest you have to pay on your home.
Increase Your Home Loan Repayments
You can slash years off your mortgage by making extra repayments. It's always important to ask your lender whether there are fees involved with making extra repayments. However, if there aren't, this strategy can save you years of financial burden. You can make extra repayments to your mortgage by putting in any tax refunds or bonuses that you incur over the financial year.
Review You Interest Rates
With a great team behind you, like ours, it becomes a lot easier to review current interest rates. At REIF we work with a panel of over 25 lenders and are able to compare the interest rates that are available in the current climate. We work with clients across the country daily to save them tens of thousands of dollars each year on their home loan repayments, just by reviewing the current interest rates and finding one that is structured to their home loan. We recommend reviewing your interest rate every two years.
Check out this video where our CEO and Founder, David Chehade summarises these tips for paying off your mortgage lending quicker:
If you would like to refinance you lending and slash the amount of time you could be spending on your mortgage repayments, please reach out. We can assist you with implementing simple strategies, such as; reviewing your interest rate, increasing your repayments, plus many more to shorten the time of your home loan repayments.
Reach out on the details listed below:
1300 130 932