See how a few smart decisions could help you pay off your house faster.
Small changes can help you shave years off the length of your mortgage. Use our calculator to find out how quickly you can pay off your home by making extra payments.
- Loan amount. This refers to how much you owe on your mortgage or plan to borrow from a lender.
- Interest rate. You can find this rate out on your mortgage statement or by looking at the product review page for the home loan you’re interested in.
- Repayments. These are the payments you make towards your loan to pay if off.
- Repayment frequency. This refers to how often you’ll make payments. You can choose weekly, fortnightly/biweekly or monthly installments depending on your pay structure, loan terms and personal preference.
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Tips to pay off your mortgage faster
- Make payments more often. Make biweekly instead of monthly mortgage repayments. Because there are a little over four weeks in a month, you’ll end up make two extra payments a year.
- Repay more when you have unexpected funds. Consider dumping your tax refunds, work bonuses or dividends from any other investments. This can also help you cut down the interest payable.
- Increase your payments when interest rates are low. If you have a variable interest rate, keep making the same (or higher) monthly payments when your interest rate goes down — the difference will go directly to your principal.
- Consider refinancing. Your loan may not be the most competitive product on the market anymore. Consider refinancing to a mortgage with a lower interest rate.
Paying extra on your mortgage can help you cut down the length of your loan and save money on interest. If your interest rate is so high you can barely afford your monthly payments as-is, consider switching to a new, more competitive mortgage.