How to pay down your home loan quicker
Updated: May 27, 2022
No one wants to spend 30 years of their life paying down their 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 down my home loan quicker?"
We've compiled our four biggest tips for home owners to fast track their home loan repayments.
Change your mortgage repayments to monthly
A lot of people are making monthly repayments to their mortgage. Did you know that switching your repayments to fortnightly can reduce the term of your mortgage?
Switching to fortnightly repayments can put you ahead in repayments as you end up paying an extra month's worth of payments for the year. Switching your home loan to fortnightly can also help you to save tens of thousands of dollars in interest over the course of your loan.
Set up an offset account
An offset account is a transaction account that's directly linked to your mortgage. This type of account can help reduce the term of your home loan. Additionally, 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. While this depends on if your lender allows for it, it can put you well ahead and free of debt. You can make extra repayments to your mortgage by contributing any tax refunds or bonuses that you incur over the financial year.
Review your interest rate
With a great team behind you, like ours, it becomes a lot easier to review current interest rates. Real Estate Investment Finance have access to more than 40 lenders and we're able to compare various rate offerings on the market.
Check out this video where our CEO and Founder, David Chehade summarises these tips for paying off your mortgage lending quicker:
If you'd like to refinance you lending and slash the amount of time you could be spending on your repaying your mortgage, please reach out on the details below.
1300 130 932