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5 Tips to Repay Loans Quicker

June 5, 2020

We all dream of living a debt-free lifestyle, where we own our own homes outright and we have savings to pursue other passions in life. And if it’s a mortgage repayment that might be affecting in achieving this dream, then read these tips to pay off your loan quicker.

1. Make payments every fortnight

Interest on home loans is calculated daily. By switching from a monthly payment plan to a fortnightly payment plan, you'll make the equivalent of an extra month's repayment each year (as each year has 26 fortnights). This may help reduce the interest you pay over the term of your loan so you are debt free sooner.


2. Consider an Offset Account

An offset account is a transactional savings account linked to your home loan. When interest on your home loan is calculated, the balance of your offset account is taken off the principal amount owing. This can reduce the amount of interest you are charged and help you pay off your principal and interest home loan faster.


3. Make extra payments

Extra repayments on your mortgage can cut your loan by years. Got a bonus, the tax refund has come through, you can put into your mortgage could save you thousands in interest. If your lender allows it without any charges then It could be a small step to pay off the mortgage quicker.


4. Consider refinancing your home loan

If you’ve reviewed your home loan and found it doesn’t suit your needs, you may want to think about refinancing your loan. Renegotiating your current rate with your existing lender or moving to a new lender that offers a lower interest rate may result in savings and help reduce the term of your principal and interest loan.


5. Do an annual home loan health check

Every day is a new day and there are always lenders competing for your business. So don’t set up your mortgage and forget it. Take some time every year to do a check and see what offers are out there.


Reach out to us and see if we can help you pay off your mortgage quicker.

Kapil Bhatt
About the Author
Kapil Bhatt

I love my job of making people's dreams come true. The joy it brings when people thank me for having helped them secure a property they can call home or investment they can lean on when they retire is priceless. I have helped hundreds of people save thousands of dollars on their mortgage, unlocked valuable equity from their assets to buy investments, businesses etc., and helped them repay their debts and get their finances in order. I have been fortunate enough to help young couples grow from first home buyers to property investors by helping them at each step on their financial journey. In addition, I have helped many businesses seek finance when their banks would not lend them money because of their credit history.

With a Diploma of Finance and Mortgage Broking, a Bachelor's Degree in Business Accounting and experience working with several financial institutions, I started Euphoria Loans in Feb 2015. The goal was to make finance easy for people from all kinds of life, and I am proud to say we have been able to do just that.