"Choice made it so simple and affordable".

Paying Off Your Mortgage Faster

Paying off a mortgage is one of the biggest financial goals that we all face as homeowners. Essentially, to pay off your home loan you have to reduce the principal owing on your property.

Whether you're nearing retirement age or just looking for ways to reduce your home loan debt as quickly as possible, here are eight great tips for paying off your mortgage faster!

Increase your Home Loan Repayments

Increasing monthly repayments on your home loan by the smallest amount can take years off the life of a mortgage. Where possible, choose a home loan that allows you to make weekly or fortnightly repayments rather than monthly - this will allow you to make a few extra mortgage payments every year without noticing. Combining these efforts can have a surprising effect on the principal of your mortgage over a short period of time.

To help you figure out the numbers for your particular home loan situation, try using our extra home loan payment calculator here.

Reduce your Mortgage Interest Rate

One of the biggest opportunities to pay off your mortgage faster is to find a cheaper interest rate from the start. The key is to find a home loan that offers a cheap interest rate with lower fees and most importantly, a flexible home loan - your Choice Home Loans consultant can help you with this. They will explain all about mortgage reduction strategies, how to achieve a low interest payment and how you can reduce or eliminate mortgage fees.

If increasing your monthly mortgage payments is not an option, you can still pay off your mortgage faster by refinancing your mortgage to negotiate a lower rate. A Choice Home Loans refinance mortgage home loan is invariably the best option to get you out of this costly situation.

Home Loan with Flexible Repayment Options

Flexible mortgages should allow you the freedom to make your mortgage repayments when and how you choose. If you're limited to making only monthly repayments to your home loan with no option to alter this, you're being limited and will essentially end up paying more interest. Call a Choice Home Loans consultant today to discuss your mortgage options.

Make Extra Home Loan Repayments Early

Any extra mortgage payments that you make from the very beginning, such as making your first repayment on your settlement date, all goes towards reducing the principal on your home loan and minimising interest payments.

Get your Income Paid directly onto your Home Loan

Getting your income deposited directly into your mortgage effectively reduces the principle you owe as soon as it appears in your bank account. This in turn reduces the interest on your home loan.

Set up an Offset Bank Account

An Offset Bank Account helps reduce interest costs on a home loan by linking the loan to a separate savings account. The balance in this account 'offsets' the home loan principal. Interest is then calculated on the home loan principal minus the balance in the offset account. For example, if the principal on your home loan is $180,000 and there is $5,000 in your offset account, then interest is only calculated on $175,000.

Pay a Lump Sum on your Mortgage

Another way to decrease your mortgage principal and pay off your home loan faster is by making a large lump sum payment. If you have come into extra money (eg. tax return time) or have a considerable amount of savings, this may be a wise financial decision. It will also dramatically decrease the amount of interest you will pay over the life of your mortgage, saving you money.

Stay in touch with your Choice consultant

Over the life of your home loan, there will be numerous changes both in the home loan market and to your personal financial situation. Make sure you keep in touch with your Choice Home Loans consultant regularly to help you stay informed.

The satisfaction a homeowner feels when making that final mortgage payment is really unmatched by any other financial achievement. Following these simple steps to paying off your mortgage can help you make that dream a reality real quick!

Contact your Choice Home Loans mortgage broker for clear and easy advice about the fastest ways to pay off your mortgage. We'll help guide you through the loans and mortgage maze!

is one of our many Choice brokers that can help guide you through the mortgage maze.

First Name*:

Surname:

State*:

Postcode*:

Email:

Home/Mobile Phone*:

What are you looking for?*10

Do you have any questions?

Type the text below*