To help you pay off your home loan faster, we recommend you follow the 5 simple tips to repay your mortgage:
1. Make more frequent, regular repayments i.e. divide your monthly repayment by four and pay that amount weekly instead of your monthly amount as interest is generally accrued daily and charged on a monthly basis. Make sure your home loan product allows you to do this without incurring additional fees.
2. Make extra lump sum repayments. Consider saving $30 to $40 a week to repayments will reduce the average $300 000 home loan over 30 years by 5 years, saving $87,000 in interest.
3. Watch your fees as redraw and account keeping fees will add extra to your loan repayment. Some home loan products charges no account keeping fees for the life of the loan.
4. Consider refinancing to a more competitive and cheaper interest rate. While most lenders charge break fees and other costs, such as early repayment fees for switching loans, it pays to do your homework as lenders offering cheaper interest rates.
5. When taking out a new home loan, look out for promotional offers such as no application fees as this can save hundreds of dollars off the application process.
No comments:
Post a Comment