How can I pay my loan off sooner?
Paying your loan off sooner doesn’t have to involve drastic cuts to your lifestyle and monthly surplus cashflow.
Incremental extra repayments made consistently can have a dramatic impact on the life of your loan. For example, if you have a Principal and Interest loan of $500,000 over 30 years with an interest rate of 3.50%, making an extra repayment of $200 per month could shave four years off the life of the loan and save you $46,497 in interest.
Paying off your loan faster than anticipated can also lead to positive opportunities such as creating equity to build wealth by other means such as investing in property and shares. That aside, being debt-free means that you can enjoy your life to its fullest without being concerned about your mortgage costs.
Some debt reduction strategies that we can engage in are:
- Offset accounts
- Redraw facility
- Repayment frequencies
- Extra repayments
Let us tailor a debt reduction strategy to suit your personal circumstances.