Pay off your mortgage faster by following some simple advice from Priority Lending expert brokers. If you consider the actual interest rate repayments you would pay over the full term of your home loan, it makes good sense to make an appointment with an expert mortgage broker to try and pay off your mortgage faster.
Pay Off Your Mortgage Faster By:
- Negotiating a home loan with a fee free redraw facility
- Making extra repayments on your home loan
- Considering your offset account options
Negotiate a Home Loan with a Fee-free Redraw Facility
Many home loans have a redraw facility which allow you to make extra repayments into your home loan and redraw these additional amounts at a later date should you require the funds. For example, you may want to save for renovations, ensure that you have funds to cover your rates and taxes when they fall due, or simply save up for that rainy day that always occurs when you need it least.
Pay Extra Money into Your Mortgage
It is a particularly good strategy to make additional repayments in the first 5 to 8 years of your mortgage as this is the period when most of your repayments go towards paying off the interest. So by making extra repayments, you will build up more equity in your property and shorten the life of your loan. You don’t have to deposit large sums into your mortgage to benefit. Even putting away an extra $50 a month can reduce the life of your mortgage by a couple of years and could save thousands of dollars in interest. Every extra dollar that you can afford to pay into your mortgage goes a long way.
Consider How an Offset Account Can Help Save You
Offset accounts work in much the same way as a redraw facility. However, instead of paying extra into your housing loan, your transactional (offset) account is linked to your housing loan and any amounts in the account offset the amount owing on your home loan.
Many loans featuring an offset account have higher interest rates and fees unless you are eligible for a home loan package you need to consider whether the benefits of the offset account outweigh these extra charges.
For help paying your mortgage off faster talk to an expert mortgage broker who will help you save on your home loan.
Source: Priority Lending
