Making home loans work harder
Article by Mozo
Paying off home loans fortnightly could knock years off mortgages and leave savvy Australians thousands of dollars better off.
Speaking to the Advertiser, home loans expert Sarah Cutbush explained that there was nothing tricky about cutting down the length of a mortgage and that all it takes is a few smart decisions.
Ms Cutbush explained that by paying off home loan repayments fortnightly, Aussies would squeeze in an additional payment over the course of the year, something which would add up to some serious savings as years go by.
And with new low-interest home loans now flooding the market, she urged Australians to stay strong and keep up with existing contributions, which could allow people to lop years off their mortgage without even noticing.
“These strategies are not only simple, they will add very little to your overall mortgage repayments – and in some cases nothing extra at all,” added Ann-Marie Chamberlain, an adviser at NAB.
Banks have been rushing to cut their rates in recent months in line with moves by the Reserve Bank.
Last week, BankWest proudly announced that it was offering fixed low-interest home loans at 5.99 per cent.