How To Repay Your Mortgage Early

by Oct 8, 2015First Home Buyers, Mortgages, Resources

Question for you…

How many years from now do you want to own your home free and clear of debt?

As you may already know, paying your mortgage off the traditional way takes 25 to 30 years and costs about TWICE the purchase price of your home in interest charges.

Here are two effective ways to pay off your mortgage sooner, build equity faster and save thousands in interest.

Change your payments. Simply increasing your payment frequency to bi-weekly or weekly costs nothing and can save thousands of dollars over the life of your mortgage. If you can afford to pay a little extra, consider accelerated bi-weekly or weekly payments–these are equivalent to making one extra monthly payment per year which results in substantial savings. Or you can make a lump sum payment which can realize savings several times as great over the life of your mortgage.

* Split mortgage. Instead of making extra payments, consider switching to a mortgage that pays off the principal faster without costing you anything more. Split mortgages combine a line-of-credit mortgage with a cheque account to reduce interest costs and pay off your mortgage in as little as half the time, without changing your spending habits. You deposit your pay into the Flexi account and pay bills as you normally would. (pay in at the beginning of the month, use the credit card for all purchases, clear the card and bills at the end of the month) While you’re not using your money, it’s used to reduce your daily loan balance. Over the life of the loan, this can save hundreds of thousands of dollars in interest, most NZ Banks offer this, they just don’t tell you!

Structure your Mortgage to suit you, not the Bank. We can usually advise on this over the phone by asking you a few simple questions about your income and lifestyle, restructures are easy to arrange and can save you heaps.

As always 0800 536337 is the number you need, call us today and save tomorrow!

About iLender

At iLender we put your best interests first and not the Bank – our advice is unbiased as all Lenders who we do business with pay about the same in commissions.

Although we are Auckland based Mortgage Brokers, we help customers everywhere in New Zealand and overseas with buying property in New Zealand, as we are very much about online and giving advice here and now!

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