Pay your variable rate Mortgage off as though your interest rate was 2% higher than your actual current rate. Use our Loan Repayment Calculator to find out what your repayments would be at the higher rate, then make arrangements with your lender to start paying additional repayments. Also, use our Extra Repayments Calculator to see the power these extra repayments have on your debt reduction journey.
Before you change your loan
If you find a lender with a better rate and options partway through your mortgage, you could refinance and potentially save money. However, loan establishment fees and exit penalties from your current institution could cut deeply into any benefits. As lending policies, rate discounts and loan features continuously change to meet the needs of today's borrowers, Home Loan$ & MORE will know when the best time is to consider a change.
Choosing the right loan
Always speak to Home Loan$ & MORE before you make any changes to your home loan either fixed or variable. The home finance market is fiercely competitive and there are new products hitting the streets every week. Some packages seem attractive at first glance, but watch out for hidden costs - in addition to interest rates you need to know about any loan establishment fees, monthly fees and any other expenses.
Use every spare dollar to reduce debt
Every spare dollar that you transfer into your mortgage as a voluntary repayment works for you immediately in reducing interest and saving you money. Most home loans allow extra repayments on variable rate products and also allow you to redraw those additional funds should you need them in the future. Some home loan products have offset accounts or free redraw features, but some lower rate home loans charge a fee of around $20 - $50 to redraw your additional repayments made throughout the year. If you have more deposits and only require one or two redraws per year you may prefer the lower rate home loans. Home Loan$ & MORE can help you identify which products would best suit your needs and which lenders have competitive basic variable rates or professional package discounts and most importantly which lenders have all the features you want with no ongoing or redraw fees.
