Here are some tips to pay off your mortgages faster
- Make smaller payments, more often. This could even see you pay off your loan faster, and therefore pay less interest overall.
- Pay just a little bit extra. A minimum repayment is just that – for most loans, there is no reason you can’t pay more.
- Don’t decrease repayments when interest rates fall. Even if your repayments are lowered when fees and interest rates decrease, it doesn’t mean that’s all you have to pay and, by keeping your repayments at the same level when interest rates are lower, you will pay down more of the principle with each payment and make speedy progress on your loan.
- Offset it. If you can, use an offset account. A mortgage offset account is linked to your loan and the interest payable on the loan from month to month is calculated by deducting what is in your offset account from your current loan.
Ultimately, your mortgage needs to suit you and your circumstances, or you will wind up paying too much. If you think your current loan no longer matches your situation, speak to me today! We will be able to find the right product for you, as well as negotiating appropriate rates.