Paying off your loan can sometimes feel like a bit of a race. Sprinting to the goal where freedom in the form of cocktails and a holiday awaits. When the slog feels tough it may be time to reconsider how you’re paying off your loan and try one of these!

 

Refinancing

Refinancing is one of the simplest ways to take years off your loan. Alternative lenders can offer rates of 1% less than major banks, saving you up to $100,000 on an $800,000 loan

 

Offsetting your loan

Offsetting is one of the quickest ways to reduce the interest you pay on your mortgage, saving years on your loan. It refers to earning interest on your savings which is then subtracted from the interest payable on your loan. Sound confusing? If your loan is $800,000 and you have $100,000 in an offset account, you will only pay interest on $700,000!

 

Increasing minimum payments or round up your payments

One of the easiest and quickest way to save money is to try and round up your payments to the nearest hundred. While it may not seem like much, when you’re doing it overtime it all adds up! Make sure to also increase your minimum payments when circumstances change. That way you will always be paying the most you can afford.

 

Lump sum payments

Try to place any bonuses, tax returns or inheritances towards your loan. These lump sum payments can take years of your loan!