By adopting some simple features available within home loans you are able to ensure that your money is working hard for you, allowing you to build towards financial freedom faster.
As interest is calculated on many home loans on the daily balance, you can save on interest by reducing the average daily loan balance. This can be done by:
1. Increasing the repayment frequency
2. Increasing your repayment amount
3. Crediting your entire salary into a 100% offset account
4. Paying the majority of your living expenses with a credit card (provided the credit card is repaid within the interest-free period).
The case study below illustrates how you can reduce your home loan faster by adopting the above features.
To see how you can reduce your debt quicker and open up your opportunities, feel free to contact us.
Case study courtesy of: MLC – Smart strategies for using debt 2010