Structuring your home loan more efficiently can help you reduce your loan balance substantially and pay off your loan faster.
Mortgage minimisation is based on good planning and tight budgeting. Here are four basic tips to help you minimise your mortgage, save interest and pay off your loan quicker:
- Pay your mortgage off as frequently as possible. Fortnightly is better than monthly
- Make lump sum additional payments when you receive a financial windfall like a tax return
- When financial times are good, increase your mortgage payments above the basic repayments
- Ask for a mortgage offset account. These work by linking your mortgage to a dedicated savings account.