If you want to get rid of that mortgage, there are two things to look at: 1. How do I get the best rates and fees on my mortgage, and 2. How do I leave more money on my mortgage every month? We work with our customers on both of those fronts. We negotiate the best rates we can on your behalf, and then ask for rate reviews regularly so you don’t have to, and we work with you to make your ‘banking ecosystem’ as efficient as possible which makes leaving money in your offset account as easy as possible.
One effective strategy to pay off your mortgage faster is by utilising a mortgage offset account. This type of account is linked to your home loan and allows you to offset the interest charged on your mortgage by the balance in your offset account. By maintaining a higher balance in your offset account, you can reduce the interest you pay over time, accelerating your journey towards mortgage freedom.
All the benefits of offset, but multiplied! Why not put your money in ‘buckets’ so budgeting and managing your money becomes so much easier. Multiple Offset accounts allow you to have all the interest saving benefits of offset and the money management benefits of keeping money earmarked for different purposes separate. It could look something like this:
Making additional repayments towards your mortgage can significantly reduce the overall interest you’ll pay and help you pay off your loan sooner. We’ll help you explore the options available to you, such as lump sum payments or increasing your regular repayments. Our experts will provide guidance on how to optimise your additional repayments to achieve the maximum impact and save thousands of dollars in interest payments.
If your current lender is no longer the best fit for you, we can explore refinancing. Refinancing your mortgage can be a smart move to secure a more favourable interest rate, lower fees, or access additional features that align with your financial goals. Our team will assess your current loan structure and explore refinancing opportunities that can potentially save you money and accelerate your mortgage payoff.
At Own Home Loans, we pride ourselves on providing ongoing support and guidance throughout your mortgage payoff journey. Our team of professionals will be by your side, offering personalised advice, reviewing your progress, and making adjustments as needed. We’ll empower you with the knowledge and tools to make informed decisions and stay on track towards achieving a mortgage-free life.
Ready to take control of your financial future? Contact Own Home Loans today, and let us show you the best ways to pay off your mortgage faster. Together, we’ll create a customised plan that sets you on the path to a debt-free life and a brighter future.
Our service is free but can potentially save you a ton! We get paid by the lenders. Even if you don’t go through with a mortgage through Own Home Loans, the consultations are always free of charge.
Well that’s a tough one to answer! The main variables to ‘play with’ are 1. Size on mortgage (don’t overcommit) 2. Rate & Fees (get the best deal you can with the options that make paying off your mortgage easier), and 3. Leave as much in an offset account or redraw each month.
You should review your mortgage at least annually. It doesn’t take long, but can save you thousands.
There are two methods to look at here, the avalanche method and the snowball method.The avalanche method is a systematic approach to debt repayment that focuses on saving you money in the long run. With this method, you prioritise your debts based on their interest rates, starting with the one that carries the highest interest rate. By making extra payments towards this debt while maintaining minimum payments on others, you aim to eliminate it as quickly as possible. Once the highest-interest debt is paid off, you move on to the next highest, creating a cascading effect that gains momentum over time. This method saves you significant interest costs and can potentially help you become debt-free faster.
On the other hand, the snowball method takes a different approach—one that emphasises quick wins and psychological motivation. With this strategy, you start by tackling the smallest debt first, regardless of interest rates. By paying off small debts in full, you create a sense of accomplishment and momentum that fuels your determination to tackle larger debts. As you clear each debt, you roll the payment amount into the next one, growing your snowball of debt repayments until it gains unstoppable momentum. While the snowball method may not save you as much money in interest as the avalanche method, it can provide you with a sense of achievement and keep you motivated on your debt repayment journey.
So, which method is right for you? The answer depends on your financial goals, personality, and circumstances. If you’re looking to minimise interest costs and have the discipline to stay focused on the long-term financial benefits, the avalanche method may be your best bet. On the other hand, if you thrive on small victories and find motivation in seeing tangible progress, the snowball method could be a great fit for you.
