Need To Find A Mortgage Broker ?
Our Broker Directory makes it easy
Just Click on your State
Then Click on your Suburb
 |
ADVERTISE HERE |
ADVERTISE HERE |
Repay Your Home Loan Quickly
10 Way To Own Your Home Loan Sooner
1. In the first few years of a standard 25 year loan, if you only make the minimum repayment, the principal will reduce ever so slowly. However, if you pay a lump sum of $1,000 or $2,000 every few months or so, you will notice the principal come down more rapidly. Making extra repayments in the early years of a mortgage is absolutely crucial.
2. If you don't need lots of bells & whistles with your mortgage, why not take out a basic options loan. The interest rate is usually about 0.60% lower than the standard rate.
3. Increase the frequency of your repayments. Divide you monthly payment by 2, and pay fortnightly. Because there are 26 fortnights in a year, this equates to one extra months repayment every year.
4. Ask your lender about special packages. For example, larger loan sizes can enable you to obtain a discount of between 0.50 to 0.80% off the standard variable rate, as well as waiving the monthly account keeping fee (on both the loan account and your savings account), and perhaps also giving discounts on insurances, etc.
5. Take out an All-In-One-Account. You pay your salary directly into the loan account, pay all your bills on interest free visa, then at the end of the month the balance on Visa is added back to you loan account. That way, your salary works hard all month to reduce the amount of interest on your loan. You can access "money to live on" via ATM, telephone or internet.
6. Refinance your loan with a lender who has a lower interest rate. Refinance costs can be surprisingly low - usually mortgage discharge fees of approx $300, then loan setup costs with the new lender of approx $400 - $1,000.
7. If interest rates are on the rise, try locking in a fixed rate for all or part of your loan.
8. If you have enough equity in your house, instead of taking out a car loan or personal loan at rates which are 4-5% higher than home loan rates, simply borrow the money through the mortgage. It may be possible to consolidate lots of smaller debts, into your home loan.
9. Instead of buying a negatively geared investment property (that may cost you $100 per week), why not purchase a positively geared property (that earns you $50-$100 per week). By putting this extra money into your home loan you can reduce the loan term by up to 5 years. Michael Bull can show you a sample of positively geared properties, which put money back in your pocket !
10. Set up an offset account. That way any savings are offset against the loan principal, thereby reducing the interest you pay. So if for example, you have a $200,000 loan & $10,000 in an offset account, then you are only charged interest on $190,000. Make sure it is a 100% offset account (not just a partial offset account).
Article Brought to you by EZI Loan