Brush that mortgage out of your hair
Paying off your mortgage becomes second nature, like walking your dog or cleaning your teeth. But should you look at how you can pay it off sooner?
Pay more than you need
Extra repayments can save you thousands in interest, and cut serious time off the length of your loan. For example, if you pay $500 monthly, it leads to $6,000 a year. If more frequent payments aren’t possible, try and add any lump sums you get your hands on (e.g. tax returns, inheritance) to your mortgage.
Get an offset loan
This allows you to save money in an account attached to your home loan. The interest you earn on your savings is then offset against your home loan balance. So, if you owe $600,000 but have $100,000 in your offset account, you’ll pay interest on $500,000. It all adds up.
Run a loan health check
Check in along the way to see if you’re getting the lowest interest rate possible. If you’re not, you might need to refinance. Rates change often so what once was a good deal, may not be so competitive now.
A mortgage is one long term relationship we all wish would end. For more tips on how to say goodbye sooner, speak to your Loan Market adviser.