Save $ 60k and years on your home loan

Townsville Bulletin - - NEWS - TIM McIN­TYRE

CUT IT OUT: Quick things you can do to save money, now HIS­TOR­I­CALLY low in­ter­est rates have saved mort­gage hold­ers thou­sands, but some sim­ple tweaks can boost those sav­ings fur­ther.

Chang­ing re­pay­ments from monthly to fort­nightly is one ex­am­ple, ex­plains Mort­gage Choice CEO John Flavell.

“Say you have a 30- year loan of $ 500,000 with an in­ter­est rate of 4 per cent. Your min­i­mum monthly re­pay­ment would be ap­prox­i­mately $ 2387,” Mr Flavell said. “If you pay fort­nightly and di­vide your monthly re­pay­ment in half$ 1194 per fort­night- you could save $ 56,643 ( in to­tal).”

Mak­ing even min­i­mal ex­tra re­pay­ments boosts long term

Pic­ture: AAP/ LISA WILLIAMS

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