Tips to save and pay off your mortgage sooner

It’s no secret that paying off your home loan sooner can save you plenty. However, with cost-of-living pressures and rising interest rates, it can be hard to find extra cash.

A series of small changes applied consistently over time could put you on track to reach your goal sooner. Here are eight tips to help boost your savings.

Tip 1: Make a plan you can stick to

Rather than making extreme changes to your lifestyle and spending habits, focus on a range of savings strategies that will be sustainable. Consider cancelling those streaming subscriptions you’re not using, learn how to cook your favourite meals at home, or opt for a second-hand or DIY option rather than buying brand new.

Tip 2: Automate and separate 

By automating your savings and extra mortgage repayments, you move the money to where it needs to go before you have a lapse in willpower and spend it. Transferring your savings to an offset account may also help you save on interest charges.

Tip 3: Get a home loan health check 

Reviewing the terms of your home loan every two years may help you find ways to save on fees or loan features you don’t need. We can carry out a loan health check for you and help you weigh up your options.

Tip 4: Create a budget and check your progress regularly 

Tracking what you actually spend is the only way to get an accurate picture of your finances. Create a spreadsheet or use a budgeting app such as Mint, YNAB or PocketGuard to categorise your spending and identify where you can cut back to meet your savings goal. Keep an eye on your progress each week to stay motivated and reinforce good habits.

Tip 5: Find extra income streams

Realistically, there is only so much you can save. Another way to boost your savings and make extra repayments is to establish an additional income stream. This could be a side hustle to your 9 to 5, taking advantage of unused assets or selling some of the unused things sitting around the house.

Tip 6: Swap this for that 

There are so many ways to trim the fat without feeling like a scrooge. Swap out an expensive hobby for a cheaper or free one, use cash instead of cards to reconnect with the reality of parting with your hard-earned money or skip a day at the spa for treatments you can do at home.

Tip 7: Make lump sum payments

Rather than spending your tax return or annual bonus, opt to make an extra repayment on your mortgage. Instant gratification is tempting, but remind yourself that additional lump sum payments can affect your total home loan repayments and the length of time it will take to own your property outright.

Tip 8: Consider paying your mortgage weekly 

It may not seem like it would make much of a difference, but changing your mortgage repayments from monthly to weekly may have a positive impact over time. Your interest accrues daily, so this simple switch could potentially save on your home loan.

Ready to kickstart your savings plan and boost your mortgage repayments? Contact us for professional advice about saving on your mortgage.

The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only. Although every effort has been made to verify the accuracy of the information contained on this website, Infocus, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

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