There are many strategies available to help investors own their properties more than six years earlier, according to Australia’s largest independently-owned mortgage broker.
Simple techniques can help cut more than half a decade off of the total duration for mortgage repayments, Mortgage Choice spokesperson Belinda Williamson said.
"Well thought-out saving, spending and loan repayment strategy decisions can help put you months or even years closer to living mortgage free,” Ms Williamson said.
Readjusting budgets and finding different ways to streamline repayments top the Mortgage Choice list for investors looking to smartly organise their funds.
Mortgage Choice suggests five simple techniques:
1) Factor everything, including socializing expenditure and bills, into your budget and refer to it every time you consider another expense.
2) Cut down on your spending. The cost of a cup of coffee put into your home loan every second day can reduce your loan term by up to two years.
3) Look closely at your home loan to ensure you are utilizing all the features available to you.
4) Stick to the same repayment rate even when the interest rate drops. Ignoring a drop of 0.5 per cent (from 7 per cent to 6.5 per cent) can save you four years and $60,000 of interest.
5) Paying fortnightly instead of monthly will mean the equivalent of 13 monthly repayments a year, saving $103,000 worth of interest and 6.5 years.
“Keep in mind even small financial changes can have a big impact on how much interest you pay over the life of your loan and the length of your loan term,” she said.
Investors are also advised to ensure that they shop around for the best financing situation when initially finding a loan.
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