Best kept secret your bank will never tell you
Has your bank ever suggested to you that you increase your mortgage repayment amount, or shorten the term of your mortgage? Unlikely, because as a result of doing this you would cost them thousands of dollars in interest, and save thousands yourself.
Consider this. A $350K loan at 5.75% over a 30 year term has a fortnightly payment $940.63. This means you would pay $383,691 in interest over the 30 years.
But, look at what happens if you increase your fortnightly payment by $160. You save $129,000 in interest and pay your loan off 8.5 years earlier.
If you increase your payments by $560 fortnight, you save $241,643 and pay your home off 17 years earlier.
The point is, the more you pay off on a regular basis, the more money you save and the less goes to the bank.
My next point is that if you have 20% or more equity in your home, you are probably in a good enough position to refinance from your bank to a boutique lender whose focus is on helping you repay debt.
As well as this, at present we can offer a cash contribution of up to $3,000 (if over $250,000 of lending) to assist with any associated costs and we will negotiate an interest rate on your behalf.
We would like to do this for you, so if you want to beat your bank at their own game, give us a call and see what we can do for you. 04 235 8960