Here are some great ideas for saving on your home loan interest costs
- Have some of your home loan on a floating rate; that way you can pay off lump sums with no additional costs, and save interest
- Put any extra money toward your repayments. Every dollar counts, even a small amount paid consistently in addition to your minimum repayments can knock years off your loan and save you thousands
- Pay half your monthly loan repayment each fortnight. Instead of a monthly repayment, make 2 fortnightly ones each month, that way you will make 2 extra payments a year, and that can shorten your loan by years and save you interest costs
- Shorten the term of your loan. Instead of a 30 year term, reduce your loan to 25 years, so you’ll pay it off faster and save interest costs.
- Keep your monthly repayments the same when your interest rates drop. If you are used to paying a certain amount, don’t change it when interest rates fall. By continuing to repay the same amount, you can reduce the term of your loan and save you interest costs.