6 tactics to help you to pay your home loan off 6 year faster that you can actually do

Learn how to pay off your mortgage faster by making an extra $300 monthly repayment. Automating the process and aligning your pay cycle with your mortgage cycle can make it easier. Other strategies include asking for a pay rise, doing extra work like driving for Uber, consolidating debt, delaying major purchases, cost-effective spending patterns, cooking at home, reducing meat and seafood consumption, cutting back on pub visits, and buying secondhand items. By implementing these hacks, you can save up to $150,000 in interest and shorten your mortgage by six years.

Unlocking the Secrets of Mortgage Freedom: Smart Strategies to Accelerate Your Home Loan Repayment

Paying off your mortgage can seem like climbing a mountain, but it doesn't have to be an arduous journey. With strategic moves and lifestyle adjustments, you can chip away at your loan more quickly and efficiently than you might think. In this thought leadership piece, we draw insights from an expert's approach to extra mortgage repayments, exploring practical methods that could save you a fortune in the long run.

Key Takeaways:

  • Making an extra $300 monthly repayment can drastically reduce both the interest paid and the term of your mortgage.
  • Automation and aligning your pay with your mortgage cycle are effective strategies to ensure consistent extra repayments.
  • Lifestyle choices and budgeting hacks, like delaying major purchases or consolidating debts, can free up cash for mortgage reduction.

The Power of Extra Repayments

The concept of making additional mortgage repayments is hardly novel, but understanding its profound impact can be eye-opening. As our expert articulates, "They're going to save close to $150,000 over the life of the loan and around six years" by contributing an extra $300 monthly to a mortgage. This is a clear demonstration of how incremental increases in repayment can fast-track financial liberation from the grip of long-term debt.

One effective approach is automating the repayment process. With the money automatically transferred following the income deposit, it's less tempting to divert funds elsewhere. Moreover, aligning payment schedules "is the key to being better at budgeting," essentially trickling savings into mortgage payments before you ever miss them.

Budgeting Hacks and Lifestyle Changes

Subtle alterations in spending habits can cumulate to substantial savings, enough to boost your mortgage payments significantly. The expert humorously underscores the urge to replace a functional but unliked toaster, exemplifying delayed gratification as a viable method to free up funds.

Another highlighted strategy is reviewing habitual expenditures, such as daily coffee habits. This recognizes a broader truth: small, regular expenses aggregate over time. By shifting to at-home alternatives—like using **"a secondhand Nespresso machine"**—significant monthly savings can be achieved.

Income Augmentation and Debt Consolidation

Elevating your income stream, though seemingly daunting, is another avenue for accumulating an extra $300 per month. One might seek a pay raise or engage in part-time work like driving for Uber. The advisor notes, "It may be the easiest way to do it." Additionally, consolidating debts, especially into a mortgage with lower interest rates, can release funds. But it should be done prudently to avoid long-term extra costs.

Recapping Smart Mortgage Repayment Tips

To reiterate, employing a few ingenious methods can propel you towards mortgage freedom far quicker than you may have anticipated. Through automatic and aligned payments, you can painlessly commit extra money to your mortgage. Adopting budgeting hacks, such as holding off on unnecessary purchases and reconsidering routine expenses, opens a window to rechannel funds into your loan repayment. On the plus side, the possibility of uplifting your income through negotiation or side gigs, coupled with judicious debt consolidation, can contribute to a more aggressive assault on your mortgage balance.

The insights we've unpacked here aren't mere abstract notions; they're achievable, strategic moves that hold the potential to trim years and thousands of dollars off your mortgage. With disciplined action steered by these tips, the dream of mortgage freedom can transition from a distant hope to an imminent reality.

Book Call Now

UNO home loans

March 7, 2024

Need help with your home loan?

UNO Brokers are available night and day for a quick review or your situation and bring expertise that will support better decision making that will save you time and money. Book in a quick call when it suits your busy schedule

Get Started

Related Articles

TESTIMONIALS

What our customers are saying

Chloe S
October 8, 2024
Mike Parsons made it possible for us and the in laws to get 2 pretty complicated home loans. He helped us through everything and we'd be happy to use Mike and the team again for anything we needed. Thanks again!
Read more
Sam Rezai
October 2, 2024
I have gone through 6 different mortgage brokers prior to meeting Andrew Wyers. He is the most patient mortgage broker I’ve encountered and also the most knowledgable about the bank’s lending process and products available. It took me 1 year to find a house I was happy with and Andrew was always there to assist with any issues or questions I had; he always return my phone call, even on the weekends or when his away on holidays. The loan process was smooth and I had no complications. The process with Andrew was again nice and easy, he took the time to find and put together the right package that was suited to my situation. I have recommended Andrew to my family & friends and everyone have been grateful and completely satisfied with his service.
Read more
S Wilko
September 23, 2024
I had not dealt with Scott or UNO before finding them on the internet. Even as an Australian citizen living and working overseas, I knew obtaining a loan would be difficult. However, Scott went above and beyond what I expected from a mortgage broker. I genuinely don’t think you could find another company that works as hard as they did to get my home loan approved. I cannot recommend them highly enough. Everyone I dealt with at UNO were extremely professional and helpful. If you are looking for a broker, you would be mad not to give them a go. Thanks to Scott Wilkinson, Dalby Bajwa, Jena Lasquite and Andrew Pacini. Shaun.
Read more
Shan Liao
September 3, 2024
I had an outstanding experience with Tian Liu. He was incredibly professional and attentive, going above and beyond to meet my needs. His expertise and dedication made the entire process smooth and stress-free. Tian's deep knowledge of the market and commitment to finding the best solutions for his clients truly sets him apart. He was always available to answer my questions and provided invaluable guidance throughout. I highly recommend Tian Liu to anyone in need of a reliable and skilled broker!"
Read more
Nathanael Chin
September 3, 2024
Tian Liu provided exceptional service throughout the entire process. His professionalism and keen attention to detail were evident from the start. Tian consistently kept us informed and offered insightful advice that made us feel confident in our decisions. He truly cares about his clients and works tirelessly to ensure the best possible outcome. We couldn't be happier with his assistance and highly recommend Tian to anyone looking for a trustworthy and knowledgeable broker.
Read more
Patrick Winters
August 14, 2024
For the past three years, it has been an absolute pleasure to work with Mike Parsons. He has consistently helped us navigate commercial property loans with skill and efficiency. Mike’s timely and professional responses to our inquiries have been invaluable. We have built a strong, reliable relationship with him and eagerly anticipate continuing our collaboration in the future. We highly recommend his services.
Read more
Lee Robibaro
August 6, 2024
I am so thankful and grateful to have Scott Wilkinson as my broker. He not only looked after me every step from start to finish he gave me confidence and I was able to trust him and his expertise. My children and I are now happy in our new home and very appreciative of Scott's help. I will definitely be only having Scott as my broker from here onward as there is no mucking around and straightforward answers. Thanks again
Read more
Steve Mav
August 6, 2024
Scott and the whole team at uno have been amazing. Super responsive and helped us achieve a result that we couldn’t have possibly achieved on our own.
Read more
Thien Pham
August 5, 2024
Scott, Dalby and Jena were awesome to work with for my recent Home Loan, they are responsive and knowledgeable - which helped ensure a smooth purchase from pre-approvals to settlement. This is the second property I've purchased with UNO as my mortgage broker and would definitely recommend their services. Thanks again to the UNO Team for the awesome support.
Read more
Scott Hutchinson
August 5, 2024
I am writing this summary in support of recommending Mike Parsons as a Mortgage Broker. At the time of writing this, I have known Mike for 4 years and he has executed 4 mortgages deals for me (including 2 refinances) over that time. Mike has provided me incredible service as a mortgage broker as follows : - Works painstakingly on getting the scenarios together to provide you options that optimize your position. - Works inordinate hours on the detail necessary to support the scenarios. - Mike keeps you updated on the status and progress of the applications and also helps you work through answering questions and any complexities that may arise. -In my cases, given the complexities and timings of my situations , these application processes would take many weeks to finalize . Mike never gave anything other than utter commitment and focus to getting the job done. Mike acts as a true business partner throughout this whole broker /mortgage journey. I simply would only go to Mike for any future dealings on getting a loan from a bank (and as will my kids in the future !) . There is no way a bank (I have seen anyway) would provide this kind of time nor service to a customer. You can rest assured that once Mike has done the deal, you have ended up with the most optimized position taking into account all the variables/scenarios in play. Scott Hutchinson
Read more
Jason Seam
August 5, 2024
I've worked with Scott Wilkinson for my last 2 properties and he's been excellent. He sourced multiple options and didn't push a specific bank, tailoring his recommendations to me based on my requirements. I was specifically requesting a "medico loan" and Scott could navigate that extra requirement with expertise. When I was initially working with Scott, I was also trialling 2 other brokers and neither of those 2 had the same breadth of lenders, or could provide the same deals. I've referred multiple buyers to Scott and his team; one of them said to me after working with him, "how'd you find this guy, he's so good compared to all the other broker's I've worked with!" I'm going into my next purchase with Scott as my broker partner again. I recommend him to everyone
Read more
Tina Anderson
July 29, 2024
My experience with Mortgage Broker - Scott Wilkinson, and his team - exceeded my expectations! I couldn’t be happier after settlement - in this current financial climate. He listened to what my requirements were in a loan and then devised a suitable plan for me moving forward. Which was something I didn’t think was possible to achieve. I strongly believe that Scott’s qualifications and previous experience in the Finance Sector - sets him apart from other Mortgage Brokers as he has more insight into the industry and the needs of the customer. Scott was professional, provided solid options, was timely with communication and gave great advice. I will definitely be using Scott’s services in the future and I highly recommend him to anyone as a Mortgage Broker.
Read more