Nothing beats the feeling of owning your home outright, especially because you don’t have to worry about interest rates or loan repayments.
So, instead of this just being a pipedream that you can one day have in the future, here are a few tips to help pay off your mortgage faster so you can own your home outright.
1. Make sure you have the right loan for your needs.
This is where getting a mortgage broker might be the best cause of action, as they can find the best loan for your needs and financial situation.
2. Look for the hidden charges.
Keep an eye out for any hidden monthly account-keeping fees within your mortgage. Many banks no longer have these account-keeping fees, so it may be time to switch if your bank still charges you.
3. Make regular extra repayments.
Even if you pay one extra dollar each week towards your repayments, you will pay off your loan sooner, so if possible, obtain a home loan that allows you to make additional repayments. Doing this helps make the interest charge for the next repayment a bit lower and is also a great way to get ahead with the loan.
4. Make lump sum payments.
If you end up having a bit of extra cash come your way, whether that is through your tax refund or a work bonus, add even a part of that income as a lump sum towards your repayment.
5. Have you heard of using your home loan as a savings account?
Okay, so savings are always convenient, and we should all have an emergency fund at the very least, but if you’re trying to save money long-term, spending the funds on your home loan will help you get ahead.
Why is this so important, you ask? Well, it will help you save on the monthly interest you pay, and it’ll help you pay your loan off sooner (and become free of those worries sooner).
So, why not start putting more towards your mortgage?
If you’re wondering what you should do if you need the money in an emergency, you can access the cash via a redraw or offset account.
Keep an eye out for our October newsletter, which explains everything about offset accounts and why they’re so handy!