Four simple ways to save money and own your home sooner
The secret to helping you save thousands and pay off your home loan faster is to minimise the interest you pay.
- Consolidate your debts – if you have multiple debts you could consider rolling them all into your home loan. Home loan interest rates are lower than the interest rates on personal loans, credit cards and car loans.
- Make additional repayments – something as simple as changing from monthly to fortnightly payments translates into one extra fortnightly payment each year. You could also consider making additional one-off payments whenever possible.
- Get more out of your surplus cash – every extra dollar you pay off your principal is a dollar you’re not paying interest on. Consider using your home loan as your account for savings. If you need to take back extra payments, some home loans that have redraw facilities will allow you to do so.
- Save interest with a Mortgage Offset Account – savings in an offset account are subtracted from your outstanding loan amount each month, so interest is charged only on the lower amount.