• Pay off your Home Loan Faster Simplified by RAMS

     


    Showing you simple but clever ways to pay off your home loan faster.

    Transcript:

    Greater Together is showing you simple but clever ways to pay off your home loan faster.

    If your goal is to repay your home loan in the shortest time possible, you need to make sure you have a loan that doesn't charge you extra costs if you make higher than the minimum repayments.

    With the right type of home loan there are several ways to pay off your loan faster.

    One of the simplest ways is to pay half the monthly repayment fortnightly.  By paying half a monthly repayment every fortnight, essentially you take advantage of the 26 fortnights in a calendar year.  This can

    really work in your favour as you're effectively making an extra month's repayments across the course of a year, which, if you get paid fortnightly you might not even notice.  This can make a significant difference over the life of the loan.

    Another option is linking an offset account to your home loan and using this account as your main transaction account.  You might deposit your salary into this account and park any extra savings here.  The balance that interest is calculated on will be reduced by the amount in your offset account effectively reducing the monthly interest payable.  You need to be aware though, that you will not get paid interest on your savings in your offset account.  

    You also have the option of paying more than your required monthly repayment amount, to pay your mortgage off faster and build equity.  When the opportunity arises, you can also make lump summary payments.  A tax refund is one example of a lump sum that could form a handy extra repayment.

    Genuine home loan advice, helping you pay off your home loan sooner.  

    It's why we're greater together

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