Paying off Your Home Loan Faster

Simon and Terri-Lee

"Our Smartline Adviser was prepared to do the research and come up with a solution. Too many people try and cookie-cutter you or just give up." Simon and Terri-Lee

"When Adam’s parents suggested he contact Smartline, he was excited to hear he could secure a loan with a savings plan and some help from his parents." Adam

Adam
Adam and Natalie

"We had a broker who didn’t make us feel foolish for asking questions, even if it was for the third or fourth time."
Adam and Natalie

"Nothing was too much trouble – our broker met us after hours, and he always got back to us promptly with the answers to any questions we had." Angelo and Belinda

Angelo and Belinda
The Humphries

"We knew we had built considerable equity in our property but were not sure of exactly what to do with it and how best to use it."
The Humphries

"I’ve got a better interest rate, better flexibility, facilities and best of all less stress!" Irene

Irene
Simon

"I refinanced my previous property with my Smartline Mortgage Broker, and the service was so good we stayed with him this time around." Simon

"Building a house can be a very overwhelming & emotional process as there is a lot of money involved, but our broker took care of everything and was always available when I called." Fiona & Jamie

Fiona & Jamie
Helen and Michael

"Our Smartline Mortgage Broker has been fantastic. He showed us how refinancing our home could not only save us money, but also make it possible to buy an investment property." Helen & Michael

Reduce Debt & Pay off Your Home Loan Faster

For most of us, paying off a home loan as quickly as possible is the smartest strategy to get ahead financially.

Increase your loan repayments

It might seem obvious, but the best way to reduce your mortgage is to simply increase your repayments. The simplest and most effective way to do this is to increase your regular repayment amount.

Some other strategies to consider are:

  • Paying fortnightly instead of monthly. There are 26 fortnights in a year but only 12 months, so by dividing your set monthly repayment in two and paying it fortnightly, you will be making one additional month’s mortgage repayment each year.
  • Making extra repayments whenever you can.
  • Keeping your repayments the same if interest rates drop at any time.
  • Next time you get a pay rise, put 50% of it towards upping your loan repayments.

Go to our Extra Repayments Calculator now to see what a huge difference just little extra repayments make over time.

Get the right home loan

Making sure that you have the right loan to suit your individual situation is important, and your Smartline Mortgage Broker will help you choose a loan that you are likely to be able to pay off faster. There are many loan products that offer flexibility – for example professional packs, line of credit loans, or standard variable loans with a redraw facility, or an offset account.

Make every cent work

100 per cent offset accounts enable you to have every cent of your money working to reduce your mortgage rather than sitting idly in your cheque or savings account. Line of credit loans can achieve the same result but can be more difficult to manage as they are like giant credit cards and require great budgetary discipline from you for them to work effectively.

Consolidate your debts

You can make significant savings in interest by consolidating all your loans – personal, car and credit cards – under your home loan, where the interest is usually at a much lower rate. Remember, however, that putting short-term consumables under long-term finance can prove expensive in the long run.

Make paying off your loan easier

  • Beware of mortgage minimisation sales people. Their services can be expensive, and they often recommend line of credit loans, which should be treated with caution.
  • We've said it before, and we'll say it again: pay off a little extra as often as you can. For example, if you pay an extra $500 into your home loan every month you might think that would mean an extra $6,000 a year off your mortgage, or $60,000 over ten years. Not bad

In fact, compounding interest means that $500 a month for ten years would actually save you $90,000, assuming interest rates are 8 percent per annum. Even if you stopped paying the extra after those ten years, thanks to the extra already paid off, you would continue to save around $7,000 every year – and that saving would grow every year.

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