If you get a pay rise, or you've got some extra money, and you are considering putting your extra income towards your mortgage, use this home loan extra repayment calculator to find out how much you can save over the life of your mortgage.
When you reduce your home loan by making extra repayments on your mortgage, you're reducing how much you have left to pay, but you're also reducing the amount of interest that you'll pay on your periodic payments moving forwards.
Even a small amount, like an extra $50 per month, can make a big difference to the total amount that you'll pay by the end of the mortgage.
It's best to chat to your mortgage broker about your options if you think you can afford to make extra home loan repayments.
Some fixed rate loans won't have this option unless you pay a fee. Your broker can advise you on how much you can repay before incurring an additional fee.
Or you might consider reducing your mortgage with an offset account, where the interest that you pay is calculated based on the repayments made plus the balance of the offset account.
This lets you access the money if you do need it for any reason, and you still benefit as you won't be paying as much interest.
A good broker will make sure that you have the right loan structure to give you the features that are right for you.
To make the decision on the best way for you to pay down your mortgage sooner, talk to a mortgage broker today. They'll be able to assess your circumstances and give you options that are tailored just for you.