How long will it take me to repay a home loan by making a set repayment each month?
Repaying a debt faster is often beneficial, especially when there isn’t any tax advantage or deduction to worry about, and if you can maintain or put forth extra repayments on your loans, that’s even better.
Saving money in interest payments happens when you pay off your loans fast, and handling the financial debt before you have to will lessen your stress. Learn more about how you can decrease your loan debts below with our How Long to Repay Calculator.
While paying more money than you have to might sound strange, owing less money means paying less interest over time. Missing repayments results in elevated interest payments and as time progresses, the interest on your loan will build up. This makes it so you’ll be paying interest on top of your interest, and this will cost you money. Wherever possible, keep on track with your repayments.
By staying current or making extra repayments on your loan whenever possible, paying off your debts faster will result in saving money on your interest. One major key for those who are paying off multiple loans is to pay off the loan with the highest interest rate first. For example, a credit card typically attracts 20% plus in interest rates per annum while a home loan is in the single digits. By paying the credit card off first, the most punitive interest rate is reduced first. Alternatively, you can also opt to handle your smallest debt first.
If you have a fixed rate loan, make sure to contact your bank to find out whether you can make additional repayments.
Curious about how long it’ll take you to repay a loan? Wondering how you can repay your loan even faster? Reach out to our experts for the insight you need to pay off your loan in less time with affordability in mind.
Is someone pressuring you to switch home loans without allowing you the opportunity to compare the fees and charges? Discuss the possibilities with our loan experts.