If you’re keen to pay off your home loan early, and save yourself potentially tens of thousands of dollars in interest, below are a few ideas to help you get ahead: 1. Make fortnightly repayments Instead of paying monthly, try paying half your regular repayment each fortnight. There are 26 fortnights in a year, so you’ll end up paying an extra month’s repayment without feeling the pinch. Let’s say for instance, your monthly repayments are $2,000. Over 12 months you’ll pay $24,000 off your home loan. But if you pay $1,000 each fortnight you’ll have repaid $26,000. It’s an easy way to knock an extra $2,000 off your loan. 2. Make small extra repayments often Even small extra repayments can have a big impact over time. That’s because additional payments come straight off your loan balance. This lowers the interest component of next month’s repayment, so more of that payment reduces your loan balance. It’s a simple way to swing the loan pendulum in your favour. 3. Add any lump sums straight to your loan Almost all of us receive lump sums of cash at some stage – usually a work bonus or annual tax refund. Put this money to work by depositing it into your home loan. 4. Consider an offset account An offset account is simply a transaction account linked to your mortgage. The balance of this linked account is deducted from (or offset against) your home loan when loan interest is calculated. Your repayments remain the same (assuming your loan is on principal and interest not interest only). For added convenience, the funds in the linked account are normally available at-call. 5. Reap the benefits of a split loan If you’re keen to take advantage of today’s super-low interest rates but you’re not comfortable fixing the full balance of your loan, a split loan can provide the best of both worlds. It means being able to lock part of your loan into a low rate while keeping the balance on a variable rate and enjoying all the flexibility this provides. 6. Go easy on the nice-but-not-essentials Money saved by sidestepping unnecessary buys can be used to pay down your home loan sooner. That doesn’t mean living on bread and water. Rather it involves thinking about what you really need, identifying non-essential purchases and embracing ways to save. 7. Consider refinancing Having the home loan that’s right for your needs and budget is essential to get ahead with your mortgage. After all, it’s a lot harder to pay off your loan sooner if you’re paying for features you don’t use or need. If your current home loan isn’t suitable, or your current lender isn’t being competitive with their interest rate, it might be time to look at refinancing to another lender. If you’ve got a story about how you paid your home loan off sooner, I’d love to hear it. Email me at kaia.hunter@mortgagechoice.com.au or Message me at on @kaiahunter.mortgagespecialist. #proprty #homeloans #moneytips #moneytipsforwomen #mortgages #kaiahunter #debtfree #saving #sunshinecoast