12 Jan 2018
9 Home Loan Features That Can Help You Become Debt-Free Faster
After the endless hours spent house-hunting, missing out at property auctions then finally settling on a home you love can be super thrilling. The minute you walk into your new home makes all that effort you put in beforehand, worth it. Then it’s time to get serious and focus on paying off your mortgage as quickly as possible so that you can be debt-free.
Home loans can offer a combination of features that work in different ways. Here’s a list of the ones to look out for that could help you save big in the long run and help you own your home faster. See how you can maximise the benefits offered by these home loan features.
100% Offset Account
Every dollar saved in this everyday transaction account linked to your home loan, reduces the balance of your loan before interest is calculated.
BPAY
It’s the convenient way to make and receive payments. Use BPAY to schedule your payments in advance, that way you’ll never miss repayments or paying your bills.
Salary Credit
Have your income paid directly into your loan account. While you can access it at any time, it helps reduce your home loan balance and saves you interest.
Frequent Repayments
The easiest way to make more payments in a year and save on interest is to switch to weekly or fortnightly repayments instead of monthly.
Redraw Facility
An excellent savings tool that allows you to make extra repayments on your home loan knowing you can access these additional funds in times of need.
Additional Repayments
Making extra repayments regularly, even small amounts, will add up in a big way and help you repay your home loan earlier.
Split Home Loans
Enjoy the best of both worlds. You can have part of your home loan with a fixed interest rate and the rest with a variable interest rate to maximise interest savings.
Direct Credits
Have all your payments, including bonuses and tax refunds deposited directly into your loan account. That way you’re not tempted to spend the money, and it works at reducing your loan balance and interest.
Direct Debit
The longer you leave your savings untouched, the better. Direct debit allows you to have your mortgage repayment automatically paid from your nominated account.
Go ahead and maximise the benefits of these home loan features. They will help you save interest and pay off your home loan faster.
Mortgage House
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for information about the best options for you when it comes to your mortgage.