Paying off a home loan is a long journey, but perhaps you're looking for ways to get to the finish line quicker.
Whether you want to increase your equity in your home faster, you want to save money on interest or you simply want to be free of your mortgage sooner, here are some tips to help you get there.
Speed up your repayment schedule
Instead of sticking to your monthly loan payment, an accelerated repayment plan can help you pay off your mortgage both faster and with less interest.
Changing to bi-weekly payments means instead of twelve full payments throughout the year, you'll be making 26 half ones, meaning you're in essence making an extra repayment.
Pay more each time
Perhaps you'd rather simply pay extra at each repayment? Not all loans will come with this ability, but if yours does it can help you shorten the life of your mortgage.
Another option is to make lump sum repayments on a one off basis. These could coincide with those times you can safely afford them, such as when you receive a holiday bonus or a generous tax return.
Don't change your payment when interest rates drop
Alternatively, instead of changing the status quo, you can help reduce the term of your mortgage simply by maintaining it when interest rates change.
If you have a variable rate home loan, keeping your repayments at the same level when mortgage rates go down is a handy way to pay off the principal of your loan faster.
Make sure your mortgage is working for you
Home loan refinancing can help you find a structure better suited to pay your loan back quicker.
Your personal situation can change at any moment, so taking the time to review your mortgage terms will ensure they are the right match for you at this moment in time.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.