How To Pay Off Your Mortgage Faster

Hints & Tips: How To Pay Off Your Mortgage Faster

Paying off your mortgage as fast as possible makes sense as it will save you money by not having to pay more interest than you need to. Here are some practical mortgage saving tips that you may be able to implement, including changing your payment frequency or using a 100% offset account to minimise interest.

1. Set up Fortnightly Payments On Your Mortgage (instead of Monthly)

This common mortgage saving tip means that you will end up making the equivalent of one extra months payment per year, saving you significant money on mortgage interest repayments over the life of the loan.

2. Keep Repayments The Same When Interest Rates Go Down

When the interest rate on home mortgage loans goes down you should try to keep your fortnightly mortgage repayments the same. You won’t notice any difference in your expenses but you will save money on interest.

3. Use Any Pay Rises To Reduce Your Home Loan

Another good idea on how to pay off mortgage loans faster is to put at least half of any pay rise that you receive directly towards your home loan as an extra repayment.

4. Make The Most Of 100% Mortgage Offset Accounts

This type of account means that any money you have in the mortgage offset account reduces the amount of interest that the bank charges you on your loan. Therefore you pay off more principal and less interest every month.

5. Refinance Your Mortgage with Unicredit (at a lower rate)

Mortgage refinancing is necessary from time to time and there are a number of reasons why you would want to refinance your home loan. You should speak to Unicredit’s Mobile Lender about your specific requirements.