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5 smart ways to reduce your home loan

These easy ways to lower your mortgage debt could save you thousands.

Paying off your home loan may seem like an impossible task, but it could be within your reach sooner than you think. By making a few minor adjustments, you could reduce the life of your loan and save thousands on your mortgage.

Here’s How You Do It:

Step 1: Select your type of property below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

Here are five tips for paying down your home loan faster.

  1. Put any bonus money towards your mortgage

    Got a bonus at work? Great. Put it on your home loan. Same goes for any monetary gifts, lottery wins, overtime pay, and tax returns. If you receive unexpected cash that isn’t factored into your regular budget, do yourself a favor and pay down your loan.

  2. Increase frequency of repayments

    If you pay your mortgage on a monthly basis, consider upping it to fortnightly or even weekly payments. Paying a smaller amount more frequently can add up, knocking a chunk of money off of your loan before you even notice that it’s gone. If you’re worried about not having emergency funds, remember that many variable loans have a redraw feature.

  3. Put savings in an offset account

    Look for a lender who offers the option of an offset account, often available with variable loans. Any money you put in the account offsets the remaining balance your loan. You’ll only pay interest on the difference, which can be a huge money-saver.

  4. Hold yourself accountable for your spending

    While you don’t have to give up your avocado toast, do yourself a favor and monitor your spending habits. Try tracking your income and expenses for a month in order to get a clear picture of what you’re spending money on. Many people are surprised to learn that their incidental expenditures amount to more than they think. By reducing these little purchases, you can put more money towards your home loan.

  5. Compare your mortgage

    Home loans are a competitive business, and your lender might not be offering you the best available rate. Compare mortgage rates with HomeLoansAustralia.com to find a better deal than what you’re on, and a home loan expert will help you make the switch. It’s easy to do and it could save you thousands: financial advisors have found that reducing your mortgage rate by a mere 0.25 percent could save you over $73,000 in interest and slash four years from the life of your loan.*

Get Started Now:

Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

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