A great mortgage broker will be equipped with knowledge, experience, and handy tips to assist their clients successfully. If a client approaches their mortgage broker inquiring about ways to pay off their mortgage faster, their broker should explain some of the following tips and tricks:
- Creating a mortgage offset account
- Opting for fortnightly repayments rather than monthly repayments
- Making additional mortgage repayments in addition to scheduled payments
- Choosing a principal and interest loan
- Choosing a mortgage option with a low-interest rate
- Choosing a variable rate loan rather than a fixed rate loan
A mortgage offset account is a type of transactional bank account that is linked to an individual’s home loan. The balance of this type of account will be offset against the home loan’s current balance. For example, if an individual has a current home loan balance of $200,000 and an offset account balance of $100,000, interest will only be charged on the balance difference of $100,000. Additionally, individuals have total access to their offset account balance through making deposits, withdrawals, and access to debit cards and checks.
Making extra mortgage payments in addition to scheduled payments is a great way for clients to pay off their mortgages faster. Making additional repayments whenever the funds are available can allow a client to save both time and money on repaying their mortgage in full.
If an individual is interested in learning more about the various ways to pay off a mortgage faster, they should reach out to their current mortgage broker for additional information.