Five ways to pay off your mortgage early
House price growth might have slowed to 15 month low, but the cost of buying a home has continued to rise in every city except Brisbane this quarter according to Domain Group figures.
With many families now under mortgage stress, Margaret Lomas from Financial Solutions shared her tips on how to pay off your home loan faster.
3 ways to save on your home loan:
- Compare RateCity’s cheapest home loans here*
- Read the 9Saver Guide on “How to find a cheap home loan”
- Read the story “5 things every household can do to try and slash their bills“
TODAY: Margaret what are your top 5 tips for being mortgage-free as quickly as possible?
1. I would recommend setting up a redraw account or mortgage offset facility. When funds are more difficult to get a hold of, the savings begin!
2. Why not pay your salary into your offset account? This will accumulate interest over time and teach you to live economically during mortgage repayments.
3. Another option is to up your repayments. Choose to pay more each month to speed up the process.
4. You could also increase the frequency of your repayments. Instead of monthly repayments, try fortnightly or even weekly.
5. Use lump sums wisely. If you come into some money, don’t be tempted to blow it on a holiday or a new appliance, think about the difference it will make to your mortgage repayment process.