Pay off your loan sooner
Would you like to pay your loan off sooner? Here are some tips that might help. Just another way Heritage puts People first
- Make extra repayments. Both consistent and ad-hoc additional repayments, such as any bonuses or tax returns, work to reduce the principal on your loan faster. The earlier you start making additional repayments the sooner you'll see results in the time and money it saves.
- Make repayments more often. If your loan repayment amount is calculated monthly, you can make significant additional savings by halving your monthly repayments and paying fortnightly instead. This results in paying an additional month off your mortgage every year which reduces the principal faster.
- Set up an offset account. Make your earnings work as hard as you do by setting up an offset or salary credit account. The additional money left in your account every month helps to reduce the interest you are charged.
- Don't lower your repayments when interest rates fall. Keeping your repayments at the old level shaves a significant portion of the principal off your loan, particularly if there is more than one decrease.
- Review your loan regularly. Reviewing your loan regularly helps you assess its effectiveness and take steps to correct any waste if necessary. Being on top of changes rather than waiting months or even years can potentially save you a lot of money.
Want to capitalise your payments in advance?
If you have payments in advance on your personal or home loan, you can ask Heritage to capitalise them through Capital Reduction. This means your loan repayments will be recalculated and you'll have a new repayment amount, but the loan term will not be affected.