How To Pay Off Your Mortgage Faster

Mortgages. Everyone needs them, nobody wants them. They can feel like a ball and chain, weighing you down as you look 30 years into the future of your life… not to sound too negative or anything!

The banks, of course, want your mortgage to be 20 or 30 years long. It works out better for them, gaining thousands and thousands of more dollars in interest.

But have they ever asked you what you want? No? How rude!

The property specialists at Patrick Leo understand that the quicker you pay off your mortgage, the cheaper your property becomes, and the sooner you can enjoy being burden-free.

Here, we outline some top ways to pay off your mortgage faster:

Buy an investment property

So, you’ve bought a home and the answer to paying off debt quickly is to get yourself into more debt? We know it sounds counterintuitive, but there are several good reasons why this could be the best way to smash through that mortgage.

Investment properties generate income from rent, and they appreciate in value. These two key qualities can help you pay off a home loan, as you’ll have  a steady flow of extra income rolling in, and you’re likely to make a profit on your investment property if you ever sell it.

Using offset accounts

An offset account is one of the best ways to shave a few years off your mortgage. This is an account that’s linked to your home loan which operates like any other savings or transactions account, except that every dollar in the account offsets the balance of your home loan. This reduces the amount of interest you pay each month. Every mortgage holder should have an offset account – it’s one of the easiest ways to get to the end of your mortgage sooner.

Fortnightly repayments

One simple strategy is to make your repayments more frequently, like going from monthly to fortnightly. How does this work? Well, there are 26 fortnights in a year, and there are only 12 months. By paying fortnightly you’re paying 13 months’ worth of repayments every year. Over a 20 or 30 year mortgage, this can make a big difference to paying it off sooner.

Demand the most

If your lender offers car insurance, home insurance, health insurance or any other service, see what they can do for you by switching to them for everything. Quite often they’ll have considerable discounts available for loyal customers. Every dollar counts!

Paying off your mortgage sooner is the dream and, at Patrick Leo, dreams are our specialty! We help Australians accomplish their goals by investing in great quality property, increasing their wealth, health and happiness. No matter your investing goals, our expert property consultants are here to realise them. Get in touch with our team of professionals today.