In an uncertain interest rate climate, one of the best strategies you can deploy to protect yourself now and into the future is paying off as much as you can while rates are creeping up.

With further rate rises expected, paying more while rates are still lower can put you months ahead, and next year, when rate rises do peak, you’ll find yourself in a position where you are ahead in terms of mortgage payments.

So, what can you do to pay off your home loan faster? Let’s talk about some strategies you can action to start getting ahead in the mortgage game.

Change the frequency of your payments – if you’re paying off your home loan monthly, look to changing it into a fortnightly or weekly payment cycle. By doing so, you are paying down the principal amount faster (as interest accrues monthly), thus reducing the interest accumulating. By paying weekly or fortnightly, you’re also making an additional month of payments per year. Contact us to discuss how this might work for you!

Make extra repayments – making additional lump sum payments, say from a tax refund or that work bonus you got this year, could significantly impact the life of your loan and, of course, how much interest you’ll pay. Even throwing in the odd smaller regular repayments could help you over the life of the loan.

Make sure you have the loan that suits your needs – there are many different loan products available, and some of them are probably better suited to your current situation. We can talk to you about additional loan features which might enable you to pay off your mortgage faster – for example, an offset account or a redraw facility. An offset account will let you offset interest accrued, and a redraw facility could allow you to make extra payments while also accessing these funds.

There are many different options available that will assist you in paying down your mortgage effectively. Our experienced team will take the time to assess your current situation and recommend actionable strategies – be it your primary residence or investment property.

If you’d like to discuss these options, contact the MAW Money team today.