Restructuring your mortgage can help you pay it down more quickly. Liz Koh recently spoke to Radio New Zealand about some tips for reducing your home loan faster:
- Break your loan down into a few different pieces so you don’t have the whole lot coming off one fixed rate at the same time.
- Using an offset loan, which allows your savings to reduce your home loan interest rate, rather than putting savings into an account that pays a tiny amount of interest.
- Revolving credit is another option to put your savings into, giving you the ability to draw it down if you need it – and it allows you to make extra repayments without penalty.
“Now is the time to really think about ways to get rid of that mortgage as quickly as possible,” Koh says. “We need to be in a strong financial position going forward.”