How can I pay off my mortgage faster?
It doesn’t have to be the stuff of dreams. There are several strategies that could help you pay off your home loan sooner. And it doesn’t necessarily mean sacrificing the things you love doing today.
The first step towards paying off your home sooner is to understand your loan—how much you owe, how much you are paying and what other financial commitments you have.
Once you know where you stand you can start getting smarter with your loan.
Consolidate your financial commitments
Over time, it’s easy to build up small loans here and there. Individually, they may not seem like a lot but it could mean you’re paying higher interest rates and lots of extra fees, which could keep you in debt longer and really impact your lifestyle today. By bundling all your financial commitments into one loan you can get a clearer picture of what you owe and potentially save money too.
Make fortnightly repayments
If you can afford it (and you’re not doing it already), consider changing your home loan repayments from monthly to fortnightly. This can make a really big difference to your loan.
Of course, by changing your repayment frequency you may need to be more mindful when it comes to managing your money. One way of doing this is to align your pay dates and repayment cycle. Even though it may take time to adjust, you could keep thousands of dollars in your pocket that you would have otherwise paid in interest.
Use an offset account
An offset account is a simple tool that can potentially help you save thousands over the lifetime of your home loan.
Own your home sooner and still enjoy the things you love
If owning your home sooner and maintaining your lifestyle are both important priorities to you, consider contacting the Blueprint Wealth Mortgage Broking Team.
Based on your goals, and personal situation, we will be able to create a personalised plan that’s right for you. With expert advice, you’ll be on track to owning your home sooner while still enjoying the things you love today.
At Blueprint Wealth, we offer financial advice that is right for you, no matter what stage of life you are at. Contact us to set up a plan that is right for you.
Greg Major is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL 232706 and Australian Credit Licence 232706. This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.
