Cutting years off your home loan and drastically reducing your interest repayments is not necessarily the impossible task some people see it as, according to one property writer.
Very few of the millions of Australian homeowners are currently managing to make their final payments in advance of original projections, but “living mortgage free is not a pipedream”, says Alex Tilbury of News.com.au.
In an article titled Cut Years Off Your Home Loan, Tilbury asserts: “You may only need to find an extra $200 to $500 every month so that you can exceed your mortgage payments.”
Tony Meredith, Suncorp Bank executive manager of personal lending told the publication that people might be shocked to learn just how much money they spend on coffee, eating out or ordering takeaway.
“By paying even an extra $20 per fortnight off your mortgage, you can make a significant difference to the balance,” Meredith said, whilst also suggesting that significant lump-sum deposits such as an entire tax return can cut months of a mortgage and save thousands of dollars each year.