finance

Fast track your mortgage repayments

By Staff Reporter

Make your dream of debt free homeownership a reality with a few simple strategies.

The longer you take to pay off the principal amount you’ve borrowed for your home the more interest you will end up paying.<


 

However mortgage reduction is much easier and less painful than most people think, and as interest rates tumble there’s never been a better time to use the money saved on mortgage interest repayments to drive your mortgage down.

Keep the following points in mind as you strive to be fast track your mortgage repayments:

Review your home loan: Make sure that your home loan still has a competitive interest rate. Some lenders are heavily discounting their loans to win business so it’s well worth considering your options. Your broker will be able to help you explore whether there’s a better deal available, so give them a call.

Stay the course: Interest rates have already fallen three percent in just four months – that could mean a monthly saving of hundreds of dollars on your repayment amount. Why not keep your repayments where they were before rates dropped? Follow this strategy and you’ll potentially channel thousands of dollars onto you loan each year and take years off your repayments.

Increase your repayment frequency: Switching to fortnightly repayments is an effective method for channelling an extra month’s payment into your loan each year. How does it work? Rather than making 12 monthly repayments by paying them fortnightly you’ll make 26 repayments – giving you an extra month’s injection into the principal. Stick with this tactic and you’ll knock over four years off the life of a 25 year loan.

Lump sum: Have you just received a tax rebate, Christmas bonus or an inheritance – use every opportunity to drive down the principal amount of your mortgage. The more cash you put into your mortgage, the earlier you’ll repay your loan. Just remember, if necessary, you can usually release equity from your home if you have to unlock those extra dollars at some stage in the future.

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%
Fast track your mortgage repayments
SPI logo