How to Pay Your Mortgage Quicker

4 realistic ways to pay your mortgage quicker...

1. Reducing the interest rate you pay

2. Reduce the fees you pay

3. Use an offset facility  or redraw facility effectively

4. Make extra repayments

 

Reducing the Interest Rate you Pay

Reducing your interest rate by as much as half a percent (0.50%) from 8.07% to 7.57% you can;

- SAVE $82 per month on your repayments

- SAVE over $984 yearly

- TOTAL SAVINGS = $24,600 over the life of the loan

Try our compare loans calculator to see how much you can save between two loans

 

Reduce the Fees You Pay

 Find a loan with nil up front an ongoing fees over 25 years an you could -

- SAVE up to $600 plus in upfront fees

- SAVE $2,500 on monthly fees based on a $10 per month charge

- SAVE between $7,500 and $10,000 for yearly fees associated with professional packaged loans

- TOAL SAVING = anything from $600 to $10,000 depending on the type of loan selected

Try our compare loans calculator to see how much you can save between two loans

 

Use Offset and Redraw Facility Effectively

Place all your savings and income into your home loan account or offset account. Effectively you are making an extra repayment and reducing the amount of interest paid on the loan. When you require these funds you can withdraw these funds. Before selecting a loan make sure that there are no added costs for using these facilities.

For example, an average balance of $10,000 placed into an offset account or into the loan account for a loan of $250,000 over 25 years and you can -

- SAVE $49,715 in interest repayments

- Reduce the loan term by 2 years and 3 months

Use our 100% mortgage offset calculator to calculate how much you can save

 

Extra Repayments

This is the quickest way to pay your mortgage quicker. Using the example where your initial interest rate at 8.07% for a $250,000 over 25 years you can make the following savings -

- SAVE $40,907 by making extra repayments of $82 per month from reducing the interest rate by 0.50%

- Save $5,796 by by making extra repayments of $10 month from the money saved by not paying the ongoing fees.

Try our extra repayments mortgage calculator to calculate how much you can save on your loan

 

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Need Help?

To find out which loan is best to choose contact one of our mortgage professionals below. They can show you all the all the hidden costs and restrictions as well as show you the most reputable lenders to choose from.

 

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