Did you know ‘mortgage’ is actually an old French word that translates to ‘death pledge’? The good news is that in 2022, taking out a home loan doesn’t have to be a life sentence.
If you’ve already got a home loan, there are a couple of things you can do to pay your loan down faster and potentially be mortgage-free sooner.
Make extra repayments
This one seems obvious, but you’d be surprised at what a difference a few extra hundred dollars a month makes to the life of your loan – thanks to the ‘magic’ of compound interest. So if you’re in a position to make additional repayments, you could shave years off your loan and be debt-free sooner. Ask us for guidance on this one and we’ll crunch the numbers for you.
Renegotiate your interest rate
Renegotiating your interest rate with your lender – while keeping your repayments steady – is one way to pay off your loan sooner. Keeping an eye on what’s happening in the market is a good way to be prepared to ask your lender for a better deal. For example, you can ask for a rate reduction every six to twelve months if you have a variable interest rate. You may also be able to negotiate a rate reduction even if you’ve only recently taken out a home loan, say, within the last six months. We are expert negotiators and can play hardball with the bank on your behalf.
Find a better loan option
Does your home loan still suit your needs? Are you making the most of the benefits, or are you being hit with too many fees for features you’re not even using? Life can change in the blink of an eye, so it may be worth reviewing your current situation and researching a better loan option. Getting a good deal can help you pay off your mortgage sooner and save more money.
Whether we renegotiate your interest rate with your lender or find you a better option elsewhere – you could save significantly. Get in touch with us to review your loan and help you get a better deal.
Contact us to find out how we can help. We’d love to hear from you.