Hello, homeowners! Have you been thinking about how great life would be without a mortgage? You're in the right place! At The Happy Finance Company, we're dedicated to helping you find smart, effective ways to pay off your home loan faster. Let's dive into some strategies that could speed up your path to financial freedom.

1 Fortnightly repayments: the smart move

Switching to fortnightly repayments is a simple yet effective tactic. It means you'll be making the equivalent of one extra monthly payment each year. Since lenders often calculate interest daily, paying fortnightly can significantly reduce the total interest you'll pay over the life of your loan.

2 Hunt for better rates

Staying on top of your home loan rate can lead to substantial savings. Regularly reviewing and comparing rates could uncover opportunities to switch to a better deal. If you snag a lower rate but maintain your current repayment amount, you'll be ahead of the game.

3 Round up your repayments

Consider rounding up your monthly repayment amount. If you're paying $1,850, why not make it a neat $2,000? Even a little extra each month can make a big difference over time. It's a painless way to chip away at your loan balance and reduce the total interest paid.

4 Leverage Offset Accounts and Redraw Facilities

Offset accounts and redraw facilities are powerful tools in your mortgage toolkit. Keeping savings in an offset account reduces the interest charged on your loan. Meanwhile, a redraw facility can provide flexibility, allowing you to make extra repayments with the option to access those funds if necessary.

Learn more about the difference between offset accounts and redraw facilities.

5 Direct Your Salary into an Offset Account

By having your salary paid directly into your offset account, you'll reduce the daily interest charges on your home loan. It's a straightforward strategy that makes your money work harder for you.

6 Put Any Extra to Work

Received a bonus, tax return, or inheritance? Allocating a portion (or all) of these funds towards your home loan can significantly reduce your principal and the interest you'll pay in the long run.

7 Switch to Principal & Interest Repayments

If you're currently on an Interest Only loan, consider switching to Principal & Interest repayments. This move will help you start reducing the principal amount sooner, leading to potential interest savings down the line.

A friendly reminder...

While paying off your loan early is a fantastic goal, it's worth noting that some lenders may charge fees for early repayments, particularly in the early years of your loan. It's always wise to review your loan's terms and conditions or chat with a professional before making extra repayments.

Ready to Take the Next Step? 🚶

If you have questions or want to discuss your home loan options, the team at The Happy Finance Company is here to help. Schedule a chat with us, and let's take proactive steps towards clearing your home loan sooner!

Remember, while we're here to support your journey, always consider professional advice to make informed financial decisions. Let's make your path to a mortgage-free life clear and straightforward!

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