health

Experts share 4 tips to paying off your home loan faster.

It’s fair to say that no one takes out a mortgage intending to still be paying it off 30 years later.

But unless you happen to win Lotto, that’s usually what ends up happening, right?

But if you follow a few simple steps now, you can reduce your debt faster and pay a whole lot less interest over the life of your loan.

Accurate.

Thanks to the following four simple tips, we can show you how, with a bit of insight, you can pay off your mortgage faster.

Tip 1. Consolidate your debts.

Do you have multiple credit card or store card debts or personal loans? You should consider consolidating all of these loans into one monthly payment. Usually you can work out a payment plan that suits your situation and know when you’ll have your debt paid off with a choice of flexible loan rates and terms.

Michelle Hutchison, Money Expert at home loan comparison site finder.com.au believes this a great solution to help you reduce debt.

“Consolidating debt is a common option for many mortgage holders. This is done by increasing your home loan to pay out all your debts and get some much needed breathing space. You can then focus on one repayment instead of many repayment deadlines. This can not only save interest, but it can help make managing your finances much easier,” she says.

It makes it much simpler to manage your budget with one loan to consolidate your debt and just one regular payment.

"You should consider consolidating all of these loans into one monthly payment." Image via iStock.
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Tip 2. Run an offset loan account.

Finance guru David (Kochie) Koch had some great advice on how to maximise and utilise offset or redraw loans when talking to readers at New Idea . He advised them to simply “Find out if your lender offers a cheaper basic home loan, which has fewer features but will charge you less interest. You may not have access to a redraw facility or an offset account but your repayments should be less.”

Solution - put every cent you have into your mortgage to reduce the daily interest calculation. If you put all your wages into the mortgage and leave them there for 29 days, with every day it attracts less and less interest.

How do you live? You use your credit cards. Most credit cards offer at least a one-month interest free period. You then automatically pay off the credit card on the day before any interest is due.

"Solution - put every cent you have into your mortgage to reduce the daily interest calculation." Image via iStock.

Tip 3: Refinance your home.

'Refinancing' means replacing your current home loan with a new one.

On his blog, Australian financial expert Paul Clitheroe says “refinancing your home could be the key”. He also says “shifting to a cheaper mortgage can lower your monthly repayments and provide savings on the overall cost of the loan”.

Refinancing a home loan is often done to take advantage of a better interest rate, longer loan term or a desirable feature not available with your original mortgage. This is especially good for people who rushed into getting a home loan but now have the time to compare and source a better deal.

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Tip 4. Give your home loan a health check-up.

Just like you, your family, your car (and even your pets), your home loan needs regular check-ups to make sure it’s in the best of health. That’s why Choice Home Loans is offering customers a free home loan health check.

It ensures you’re still getting a good deal and the maximum benefit out of one of life’s biggest purchases.

Depending on when you took out your loan, there may have been some significant changes in your life, and it’s important to know that your loan is still meeting your needs.

All it takes is an appointment to talk about where life has taken you recently and where you want to be in the future.

Even better, when you book in a home loan health check before November 30, you’ll be entered into the draw to win $10,000.

Imagine what you could do with that …

reduce your debt
"It ensures you’re still getting a good deal and the maximum benefit out of one of life’s biggest purchases." Image via iStock.

Do you have any tips for paying off your home loan quickly?

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