Getting to a state of debt free home ownership is a goal many Australians share. However, there is also a common feeling that such an achievement is out of reach with all of the expenses they are faced with.
This does not have to be the case – with some targeted advice and committed action, you can pay off your home loan and be able to enjoy the extra income afforded by such dedication.
Many people enlist their first home loan, set it and forget it, making the same monthly payments for many years.
It is important to stay on top of the terms of your mortgage – many lenders bank on the fact that their clients do not often revisit the terms of their agreement.
You may be able to benefit from a home loan refinance, as most people’s financial situation changes over the years. Renegotiating terms or changing lenders may save you thousands of dollars in the long run.
Make regular lump sum payments
Interest accumulates on home loans and often eats up what could be reducing the principle balance of your mortgage.
To stop this cycle, it is recommended that you make lump sum payments in addition to your monthly repayment as often as possible.
Using tax return money or Christmas bonuses to help you with this could greatly reduce the time it takes to pay off your home loan.
Calculating your expenses and allocating specific amounts for monthly spend can go a long way toward taking control of your finances.
Funds saved could go toward extra payments on your home loan. Small sacrifices now could turn into big rewards down the road.
Mortgage brokers are often very knowledgeable in home loan payment strategies and may be able to offer you some helpful advice.
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.