Tips for Paying Off Your House Sooner
Want to know how to Pay Off Your Home Loan Sooner?
Who doesn’t want to pay off their home loan as quickly as possible? But it often feels like an uphill battle, with you eating away at what you owe oh-so-slowly over the long haul.
But it’s not just about peace of mind. The faster you pay your loan off, the less money you’ll be paying. So if you can afford to increase the amount, and frequency of your payments, you could potentially save hundreds of thousands of dollars in interest.
While you should always check with professionals to be sure you’re getting the right advice for your situation, these basic steps can offer a solid starting point for beating down that debt if you’re not doing them already.
Use Mortgage Calculators
You won’t be able to make progress unless you know precisely what you owe, and how much you can afford to adjust what you’re paying.
Halving your monthly repayment and paying every fortnight lets you pay 26 rather than 12 repayments a year. That may sound like the same thing, but in fact you’ve added the equivalent of one extra monthly repayment every year on a principal and interest of your loan. That can add up to big numbers over the life of your loan.
Not all mortgage providers will let you make fortnightly repayments, so check first (ideally before you take out your loan).
Utilise Lump Sums & Windfalls
If you get a large tax return, bonus, inheritance or investment dividends, consider adding these to your mortgage account. With many home loan products, these can help reduce the amount of interest you’re paying significantly, cutting years off your repayment schedule overall.
Remember there are tax implications for these, so check carefully about any additional costs you might be obligated to pay.Explore discount entitlements
Sometimes you can get discounts on your home loan if you’re a member of a certain occupation or professional organisation. Ask your lender if your profession entitles you to a different option and any additional savings. It never hurts to ask!
Any advice provided in this publication should be considered General Advice as it does not take into account your personal needs and objectives or your financial circumstances. You should therefore consider these matters yourself before deciding whether the advice is appropriate for you and whether you should act upon it.