How to maximise your mortgage and pay it off faster
How to maximise your mortgage and pay it off faster. The top tips from realestate.com.au’s home loan expert Andrew Russell.
We often consider a mortgage a life sentence, but with interest rates at a record low there’s never been a better time to maximise your home loan and pay it off faster.
Home Loan expert Andrew Russell from realestate.com.au shared his tips on TODAY. Scroll down to read more.
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TODAY: How do we maximise our repayments?
ANDREW: First of all speak to your mortgage broker or your current home loan provider to ensure you have either an offset account or a free redraw facility.
These two product options allow you to pay more, or offset your money against the home loan interest. Therefore reducing the loan balance and the time until you pay off your loan.
It’s worth adding that with either of these two home loan product options, you will always have access to your additional funds at the most important times if you need them.
TODAY: How can we take advantage of current interest rates?
ANDREW: One of the benefits of low interest rates is that you can pay off your loan faster. Up your repayments while rates are low and pay down your loan balance and own your home sooner.
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TODAY: Where should we put our finances?
ANDREW: A smart way is to pay your salary into your offset account. The offset account balance is then taken into account when calculating the interest on your home loan.
The offset account works like a normal transaction account, with the smart benefit of reducing your home loan balance and you pay less interest.
TODAY: How can we pay it off quicker?
ANDREW: If you want something three way, pay more, pay more often, reduce your loan term if you can.
The other thing is be disciplined, pay those bonuses or gifts into your home loan because every extra payment makes a big difference over the life of your loan.