We would all love to own our own home, so here are some practical tips on how to reduce your home loan faster:
– Keep your existing loan repayments up while the interest rates are dropping, you won’t notice any impact on your cashflow, however your home loan will continue to decrease
– Increase your loan repayments above the minimum repayment
– Use an offset account for any savings, instead of an interest bearing bank account as the amount you will save on home loan interest will be greater
– Have you wages paid into your offset account to maximise the amount you are offsetting during the month
– Put any lump sums of cash into your offset account, such as a tax refund, bonus or holiday funds that may later need to be utilised, but will reduce your interest in the interim
– Continue to have your home loan reviewed for competitiveness of rates and packages
– Remember to have a plan and stick to it!