Mid – June 2017
Clients often want to know the best suggestions for paying off their home loan quickly so I have put together a few of the most practical ideas you can implement and share them below.
Plus, we are offering a prize for the best suggestion from YOU, our readers, which we will publish next month. So get your thinking caps on and send me a reply to this email on how you think you can best pay off a loan the quickest.
We are having a workshop next month called “Power Tools for Buying Property” which is already fully subscribed. These workshops are proving very popular as those who attend generally go on to buy a property very soon after so if you are interested in learning more, please email Andrea on email@example.com and she will let you know early when we are holding our next workshop.
Best ideas for paying off a mortgage quickly are:
- Firstly, decide how much you can pay extra, so set a target – say $10K in 6 months and remember, it is never how much you earn but what you spend it on
- Make it your focus – so perhaps put a chart on your fridge showing the total amount owing and record each day as you make it lower (this feels really good when you see it go down, not just treading water, slowly going nowhere and it does inspire you to pay more into the loan)
- Save all $5 notes – and once a month put them into your loan. You will be surprised how they can accumulate!
- Click our on-line calculators here to see what affect your extra payments will make
- Put any bonus, overtime or tax return straight into your home loan
- As much as I hate to suggest this, don’t buy coffee out, or lunch or dinner for at least 3 weeks out of 4 – saves heaps – or don’t spend 4 days out of 5 as these small disciplines make it easier to carry out rather than no treats at all. Plan your spending so you have rules to operate under and then you are not so easily swayed by a decision on the run (as when we get busier and more tired as the week goes on, self control becomes harder!)
- Allocate a small amount of cash to use each week on extras and once it is gone, that is it – no topping up no matter what
- Review insurances – medical, home & contents or car and negotiate them down. It is worth an annual review to get a better deal
- Of course, you can call your mortgage broker to review your home loan – we can usually find a way to make it cheaper for you!