How do I pay off my loan faster?
If you want to pay off your home loan faster you may wish to choose a variable home loan over fixed as it offers more flexibility and could allow you to make extra repayments.
If you have a variable rate loan here are several ways to pay off your loan faster:
- Make extra repayments if your home loan and budget allows.
- Try switching your repayments to weekly or fortnightly. Paying more often can reduce the total amount of interest you pay and help you pay off your loan quicker.
- If your loan allows it, consider paying your salary into your mortgage account and then paying your bills from there. Having a lower balance will reduce the amount of interest you pay over time.
- If you can afford it, when interest rates go down, try to keep the same level of repayments.
If you would like to do a home loan health check to ensure you have the right home loan for your needs, meet with an expert Aussie Broker.