Becoming mortgage-free is the ultimate goal. There are so many benefits to achieving this, largely the financial freedom that comes with being relieved of one of the biggest debts possibly in your lifetime.
We’ve compiled a list of ways you can help pay off your home loan faster.
1. Secure a lower interest rate.
Many Australia’s may question if this is even possible these days; however, the good news is you can!
By locking in a more competitive interest rate, this can save you thousands of dollars. By paying less in interest you may be able to increase the amount you pay towards your principal loan.
Our expert mortgage consultants will do the hard work for you. We can call on our relationships with some of Australia’s leading lenders to negotiate an interest rate that works best for you.
To discover how much you could save with a lower interest rate using our mortgage
repayments calculator.
2. Make more frequent or extra repayments.
It sounds obvious, but making more frequent or extra repayments is a simple way to pay off your home loan sooner.
Have you recently received a pay rise, or maybe you’ve started a side hustle as a way to bring in an additional income? Did you receive a tax refund, or inheritance? Consider putting this additional money towards your mortgage.
Plus, did you know by making fortnightly repayments rather than monthly, you can end up making an extra month’s home loan repayment every year! Now that’s what we call a fun fact!
3. Create an offset account.
An offset account is like an everyday bank account linked to your home loan balance. Fully transactional and allows you to withdraw funds for your day-to-day expenses.
You can deposit your salary and savings into the account and the balance is then offset against the amount owing on your home loan, reducing the interest on your home loan.
For example, if you have a loan of $550,000 and $30,000 in your offset account; in this situation, you’ll only be charged interest of a loan balance of $520,000.
As the interest charged on your monthly repayments is cut down, you could find yourself with extra money to put towards your repayments and help you reduce your loan quicker.
4. Refinance your home loan.
We highly recommend looking at refinancing every few years, whilst you may not actually need to refinance your home loan, you will have peace of mind knowing that your interest rate is still competitive.
Our mortgage consultants can also check that you aren’t paying for any features you don’t need and not over-paying in fees and charges.
Chat with your local MyChoice Home Loans consultant about a FREE home loan review.
