When you look at your home loan:
- It’s the biggest debt you will ever have,
- No one else will help you pay it off,
- If something happens to you or your partner the problem just gets bigger,
- If job loss, redundancy, ill-health or anything else stops your income,
- If interest rates suddenly jump quicker and higher than expected,
- Or anything else gets in the way of you paying for it …
What can you do?
Ian can show you 8 ways to get rid of your home loan faster than usual, and can also make you ready for a “rainy day”.:
- Additional payments. Just make more than the minimum payments the lender has said you must make.
- Pay more often. You are given a monthly minimum payment figure. Your income comes in fortnightly. Pay half that monthly amount each fortnight. That makes a 25-year loan go away in under 20 years.
- Have a redraw facility. If your loan allows you to make extra payments, but redraw some of that money on a few occasions, you can afford to put more in without risking being caught short.
- Have an offset account. This allows your interest to be calculated on the difference between this savings account balance and the loan balance, instead of on the whole of the loan balance.
- Ask Ian to explain these in more detail, and also the other 4 ways.
