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Tips For Reducing Your Mortgage

Things to consider

Pay fortnightly instead of monthly

By making mortgage repayments every fortnight instead of once a month, you effectively make an extra month’s payment; so 13 repayments instead of 12. That way you reduce the length of time it takes you to pay off your mortgage, and the total amount of interest you’ll pay over the term of your mortgage.


Shorten your mortgage term

Reducing your mortgage term to 20, 15, even 10 years shaves thousands of dollars in interest off your total mortgage. Even reducing your mortgage term by one year can save you hundreds.

For example:

Amount Borrowed Mortgage Term Interest Rate Interest Paid
$750,000 30 years 5.65% $808,537
$750,000 25 years 5.65% $651,925
SAVING     $156,612


Does this all seem to hard? We can make it easy for you. Simply contact us on 8352 8111 or call Peter Gillard directly on 0412 121 989 to sort out any of your fiancial quesitons.


Make additional payments & "stock up" your mortgage account

We all love a good bonus at work, or maybe it's tax time and the return is good? Whatever the reasons, keeping as much monies in the Mortgage account as possible reduces the interest paid. For example:

Jenny puts her fortnightly wage into her home loan. She only transfers out of the home loan when she needs to. This way, Jenny ensures she pays as little as possible in interest. 


**IMPORTANT** - Check with your Mortgage Broker & Lender to ensure your home loan account, when in credit, can be withdrawn from without fees. 



Look out for refinancing deals

Keep an eye on the interest rate and consider refinancing if a better deal comes along. Look for refinancing offers with more flexibility or a better interest rate. Be sure to factor in any costs for refinancing when considering this option.

It’s worthwhile reviewing your mortgage on an annual basis to ensure you’re getting the best deal available to you. Our in-house broker Peter Gillard, offers free financial health checks and remorselelly hunts down the best deals available in the marketplace for his clients. 

If interest rates do drop, keep up your repayments at your current level, rather than be tempted to spend the savings. By doing this, you’ll shave off a substantial portion of your loan principal.


Let us help you

Planning ahead for your future retirement and ensuring you’re on track to pay off your mortgage on time may seem challenging. If you’d like advice on how you can buy your home for less and pay off your mortgage sooner, get in touch with our Broker Peter Gillard on 0412 121 989 .



* Disclaimer: Any figures quoted are an approximation and should be treated as a guide. Harcourts Sheppard takes no responsibility for any results from this information. For an indepth financial health check, contact our very skilled in-house broker Peter Gillard on 0412 121 989