How can we achieve the great aussie dream sooner, pay off our home loan before the 30 year term ends and save on interest? If I had a dollar for every time I get asked this question…

Here are some key things you can START doing NOW TO HELP pay OFF your loan sooner.

• Make regular extra payments. 

This may seem obvious and is a simple yet effective strategy, however, it can be hard to do because we can always think of better things to spend money on. I find setting up scheduled, regular loan payments into an offset account that doesn’t have keycard access, eliminates impulse spending.

• Offset Accounts.

An offset account is a savings or transaction account linked to your home loan and is the best way to save on interest and pay off your loan sooner. The account’s balance is ‘offset’ against your home loan balance, which means you’re only charged interest on the difference between the total home loan balance and the amount in the offset account.

You can have numerous offset accounts linked to your home loan and it won’t change the way you’re currently banking.  Sometimes clients will set up goal – offset accounts, i.e.  a travel account, car account etc. which is a great incentive for saving.

• Pay off your loan with an investment property.

We have come up with a calculator that works out the point at which your investment property can payout your home loan. The calculator takes into consideration selling costs, tax and also allows us to adjust the projected growth rate.

Below is a snapshot of what the calculator looks like. This is great tool that allows you to consider investment options that’ll pay off your own home loan.

Contact us to learn about how much time and interest you could save!

Discipline is the bridge between goals and accomplishment. Jim Rohn

Thank you for reading