Brighter Selling

#5 tips to hammer you home loan in 2016

by Karleen Jentz, Copywriter 27 January 2016

Christmas continues for mortgage holders with record low interest rates sticking around in 2016. Some experts are predicting we may even see further rate cuts in 2016.

While it’s tempting to use the extra cash for life’s little treats – particularly over the festive season – you could save thousands over the long term by paying down home loan debt while interest rates are low.

You don’t need to make big sacrifices to make a big dent in your long term mortgage balance. Siobhan Hayden of the Mortgage and Finance Association of Australia shared these top #5 tips with Domain.

  1. Make smaller payments more often. If you pay $1200 fortnightly instead of $2400 monthly, you will pay off $31,200 in a year compared to $28,800.
  2. Pay just a little more than the minimum repayment – even if it’s an ad hoc contribution.
  3. Don’t decrease your repayments when interest rates fall so you pay off more of the principle.
  4. Use an offset account to decrease the interest payable.
  5. Shop around for a better deal with the help of a broker.

Read the full story on Domain.