Pay off your home loan sooner
Trying to pay down your mortgage? There are a few things to consider.
5 October 2020
Buying a home is likely to be one of the most expensive purchases you will make – and taking out a mortgage is a big financial commitment.
However, there are simple ways to reduce your debt and enjoy greater financial freedom. And, you could become mortgage-free sooner than expected!
Review your mortgage regularly
If you’re looking to get debt-free fast, it’s important to actively manage your mortgage to ensure you’re still getting the best deal.
Shopping around could save you thousands – but be sure to consider any fees associated with refinancing.
A good rule is to review your mortgage every 12 months to determine whether it still suits your current needs.
Choose a shorter loan term
While refinancing to a more competitive rate could mean extra cash in your pocket, it’s equally important to consider your loan term.
A shorter term will not only see your loan repaid sooner, but it will also mean you’ll pay less interest over the life of the loan.
Online comparison calculators can help you work out exactly how much you will save by switching to a shorter term.
Take advantage of offset accounts
Some lenders provide offset accounts, which are savings accounts linked to your home loan.
The balance within these accounts offsets the interest payable on your mortgage and reduces how much you pay.
This means that if you have a $400,000 mortgage with $20,000 in an offset account, you will only pay interest on $380,000.
Seek expert support
As local lending experts, Mike Pero Mortgage Advisers can help you find the right solution for your circumstances and help you repay your home loan sooner.
To learn more, contact a Mike Pero Mortgage Adviser today.
For more ideas on how to pay off your home loan sooner, watch Mike Pero Mortgages CEO Mark Collins’ recent interview on The AM Show.