5 Tips To Pay Off Your Mortgage Sooner

I’m always on the hunt for relevant info and I loved this - one of the best articles I’ve seen on this topic for a while. Here are a few paragraphs as a taster... 

Every Australian family wants to pay off their mortgage sooner. Do they actually do it? The ball and chain of a mortgage is a heavy one to carry around, especially for decades. Some people just accept their mortgage for what it is, make the minimum repayments and wait, wait, wait for the sum to be paid off and wish they could hurry things up. But there are ways of speeding up the process.

If you’re interested in paying off your mortgage sooner rather than later, we present five of the tried and true methods that help you get a real edge over your mortgage.

1. Make repayments according to your pay cycle

One sure fire tip is to make mortgage repayments when you get paid. If you get paid fortnightly, make your mortgage payments according to the same schedule. This cuts down on interest payable – you make 26 individual payments per year instead of just 12. These seem insignificant on paper, but they all add up.

2. Use an offset account

An offset account is a transaction account that reduces the amount you pay in interest on your home loan. If you have a $300,000 loan and $100,000 in savings, your bank or lender only charges interest on the $200,000. The more you save on your offset, the less interest you have to pay. This can shave years off the life of your mortgage.

3. Have your salary paid into your offset

Interest in offset accounts are calculated daily – so having your salary sit untouched in your offset account for a few days a year can actually have a profound effect on your mortgage. This might save you a few extra hundred dollars per year. Every little bit helps!

Pretty valuable stuff, I’m sure you’ll agree! Why not check out the whole article here and share your thoughts with me afterwards: call (0403) 296-221 or email me at [email protected]

Thanks,

Tammie