One of the benefits of undertaking a variable rate home loan is the degree of freedom granted when it comes to adding features and facilities to your mortgage. These can often be used to your advantage, helping you to save money and pay off your loan faster in the long term.

For example, property investors could do well to investigate the possibility of accessing the equity building up in their investments. Through simple loan restructuring, it's possible to access this wealth on the basis of a line of credit.

This can then be used for whatever the heart desires – whether this is be a holiday, a new car or further investment in property, the choice is yours.

You could also have the option of restructuring your home loan, which could allow you to make larger home loan repayments, or even lump sum payments, contributing towards reducing your overall home loan amount.

The benefits of these types of transactions are vast, but the biggest advantage is the savings you can make on your interest payments. Because interest is calculated daily, paying off the principle of home loan faster will help to reduce the overall amount of interest on your loan.

You may also wish to investigate the option of establishing an offset account for your home loan. The basic concept is that any money you have in the account is offset, or reduced, from your home loan amount when the interest is calculated.

For example, if you have an outstanding home loan of $750,000 and an offset account with $10,000 in it, you will only be charged interest on $740,000.

Obviously, there are massive savings to be made if these facilities are used correctly, and speaking with a financial expert will be the best way to understand the options available to you.

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!

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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.