Save Interest and Pay Your Loan Off Sooner
Here are a few simple ways to save interest on your home loan and pay it off faster.
By ROB WALMSLEY
Organise a loan with an offset account. Any money sitting in the offset transaction account is money saving interest on your home loan.
Use your home loan like a savings account. Most home loans these days have a redraw facility and normally with no fees. Having your income deposited directly into your home loan will lower the balance, thereby saving you on interest.
Make extra payments. If you have some spare cash from the sale of an asset, tax return or a gift, deposit it in your home loan account. Even if you redraw it later, it’s working for you saving interest while it’s in the account.
Any amount that lowers the balance of your loan will save you money as banks charge interest on the balance of the loan daily, therefore if you can keep the balance down – even if it floats up and down with deposits and redraws, it will mean a saving to you. Not a huge amount, but any money in your pocket is money well earned.
For any further information or to make an appointment, call me on 0402 203 303 or email me at [email protected]
“Here are a few simple ways to save interest on your home loan and pay it off faster.”
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