Skip to Content, Menu, Homepage

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.
  1. 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. 
  2. 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.
  3. 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.
  4. 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.
  5. 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.

* Based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

^ To approved applicants only. No application fee offer valid for new standard variable, discount variable and fixed rate home loans and no annual fee for first year of Home Advantage package loans, applied for between 1 March and 30 April 2017, and disbursed by 31 October 2017. Application fee for standard variable, discount variable, and fixed rate home loans normally $600. First year annual fee for Home Advantage Package normally $350. Offer not valid for further advances, living equity or line of credit loans, bridging loans, business loans, existing customers switching loans, internal refinances, or borrowing for alterations and additions. Conditions, criteria and fees apply.

Home loan repayment terms range from 1 to 30 years. Comparison rate representative example is based on: a secured loan of $150,000 borrowed for 25 years with the minimum interest rate of 3.79% p.a. (3.81% p.a. comparison rate), the estimated total amount payable including fees is $232,740. WARNING: These comparison rates apply only to the examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Interest rates are on a per annum basis. Rates and discounts are correct as stated and subject to change without notice. Discounts shown are for new loans and do not apply to switches or internal refinances. Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

Generate a personalised Key Fact Sheet based on your loan amount, term and repayments. This tool is provided to help you compare home loans from Heritage with other financial institutions.