Want to pay off your loan sooner?

March 10, 2016
Shae Aiello

This is your quarterly reminder to have a look at whether you can afford to increase your repayments. A small automated change now could make a big difference to your life.

Compound interest is notoriously difficult for the human brain to properly comprehend, but when you run the numbers, sometimes it's almost magical.

For example, as a rough rule of thumb, increasing your repayment on a 30 year home loan by 10% can knock it down to 23-25 years (depending on the interest rate).

If you haven't reviewed how much you're paying lately, now's a good time to quickly jump on to your online banking and have a look at how much it is. Then at the very least, ask yourself, "how much more can I put in without really noticing a difference in my life?"

Once you've decided how much you can afford to increase by, it should be a simple matter of calling up the bank and asking them to change your direct debit amount. If you need a hand with this or aren't sure what to do, just give us a call on 9309 4780 and we'll help you with the maths.

Maybe that investment property doesn't have to be as far away as it looks...

 

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