How to pay off a home loan in 10 years | Time Home Loans

For most of us, a mortgage is an essential step to achieving the Great Australian Dream. Yet wouldn’t it be better if you didn’t need one? If you knew how to pay off a home loan in 10 years, how much easier would life be?

Paying off your mortgage early saves you money, lets you shake off your biggest financial burden sooner and puts you in a better position to retire.

Time Home Loans are experienced home loan brokers that know all about smart home finance management and want to give you the keys to your own financial freedom. Here are our top tips for how to pay off a home loan in 10 years, as found in Johnathon Reeves’ book ‘The Great Australian Mortgage Guide’.

  1. Increase Your Repayment Frequency

 One of the simplest ways to shave years off your loan is by switching from monthly to fortnightly payments. By making payments every two weeks, you effectively end up making an extra month’s repayment each year. This strategy not only reduces the principal faster but also cuts down on interest over the lifetime of the loan.

  1. Make Lump Sum Payments

 Whenever you receive a financial windfall, such as a tax refund, bonus, or inheritance, consider putting a portion of it towards your home loan. These lump sum payments can significantly reduce your principal, leading to less interest over time. As ‘The Great Australian Mortgage Guide’ highlights, even small additional payments can have a large impact.

  1. Utilize an Offset Account

 An offset account is a transaction / everyday bank account linked to your home loan. You deposit your salary and savings into this account and your account balance is subtracted from the amount on which you need to pay interest. 

An offset account can be a powerful tool in your home finance arsenal. By linking a savings account to your mortgage, the balance in the offset account considerably reduces the amount of interest charged on your loan. Home Loan Brokers often recommend this strategy to clients looking to maximise their savings and pay off their loans faster.

  1. Refinance for a Better Rate

 Refinancing is paying out the remainder of your home loan with a new one, potentially reaping benefits like more flexible repayment options.

It pays to regularly review your mortgage terms and consider refinancing if you find a more competitive interest rate. Even a slight reduction in your rate can lead to substantial savings over the life of the loan. If you’re wondering how to pay off a home loan in 10 years through refinancing, be sure to consult with a home loan broker to explore your options. 

  1. Cut Unnecessary Expenses

 Take a close look at your monthly budget and identify areas where you can cut back. Redirect these savings towards your home loan. ‘The Great Australian Mortgage guide; emphasises the importance of disciplined spending and prioritising debt repayment in order to achieve your financial goals. 

  1. Set Clear Goals and Monitor Progress

 Establish clear financial goals and track your progress regularly. Celebrate small milestones to stay motivated. By keeping your eyes on the prize, you’ll maintain the discipline needed to pay off your home loan in just a decade.

By implementing these strategies, you’ll not only learn how to pay off a home loan in 10 years but also gain greater control over your home and personal finances. With dedication and the right approach, your dream of living mortgage-free is within reach. Remember, consulting with experienced Home Loan Brokers can provide personalised guidance tailored to your unique situation.

Living a mortgage-free life within a decade is possible with the right mindset and strategies. Whether it’s making extra payments, utilising an offset account or cutting expenses, every step counts towards your dreams of mortgage freedom.

Find the right solution with Time Home Loans

 Whether you’re buying your first home, renovating, refinancing or investing, Time Home Loans can negotiate the right home loan for you. With options like variable, fixed, split rate and interest-only home loans, we’ll help you find the home loan that best suits your needs. As experienced home loan brokers, we can help submit the paperwork, professionally package it with your supporting documents and submit it to your lender of choice.

Need to get on top of your home finance situation? If your goal is to figure out how to pay off a home loan in 10 years, Time Home Loans can offer you a range of helpful financial services like property refinancing, personal loans, debt consolidation loans and investment property advice.

To find out more, book online to make an appointment with the Time Home Loans team.