Although financing is included in home and land packages offered by Perth builders today, the fact remains the same: a mortgage is a mortgage. The figure can be really intimidating, particularly during the early years of the mortgage when the principal and interest are at their highest—but this doesn’t have to dominate your life for long. There are simple ways you can cut years off your home loan period and soon own the property entirely.
Small things piled up can become big—so pay extra.
If you can afford to pay a few extra dollars a week, why not add it to your repayment each month. For instance, if you pay $50 dollars more on top of the amount you pay for your mortgage each week, you can shave off about five years from your home loan. Additionally, if you pay weekly instead of monthly, it equates to one extra monthly payment each year. Paying extra and more often reduces your home loan years, which in turn saves you more money than when you pay for interest longer. These saving tips can be habit-forming, especially when fueled by the motivation of seeing your home loan taper off.
Nevertheless, you should still maintain balance. Don’t overdo it to the point that you sacrifice comfort in order to pay off your home fast. Use online mortgage calculators to determine how much difference extra and more frequent repayments can do to your loan life. From there, find the number you deem manageable.