Reduce your repayments with the right rate
Whether you’re just starting your journey to home ownership, a few years in and reassessing your options, or a seasoned borrower looking to make more progress, the message is the same.
Choosing the right loan and understanding the difference between fixed and variable rates can make a real difference over time.
Fixed vs variable
If you have a fixed rate loan, there may be limits on how much extra you can repay without paying a fee. If you’re still in your fixed‑rate period, it’s a good idea to check with your lender before making extra repayments.
With a variable rate loan, you usually have more flexibility. Our variable home loans let you make extra repayments without penalty, although repayment rules can differ between lenders.
Pay more than the minimum
Home loan repayments can start to feel like just another bill, but they’re doing more than that.
Every repayment helps you get closer to owning your home and puts you in control of your progress.
One simple way to reduce your mortgage sooner is to pay a little extra whenever you can. Even small amounts can make a difference without stretching your budget.
Every extra dollar you repay is one less dollar you’re charged interest on. And getting into the habit of paying a bit more is often easiest earlier in your loan, before your repayments become something you automatically budget for and never question.
Change your repayment schedule
One option that may help you get ahead on your home loan is changing how often you make repayments. It’s easy to set up and, over time, can help reduce your loan balance sooner.
For example, switching from monthly to fortnightly repayments can mean you make the equivalent of an extra month’s repayment each year. This is because there are 26 fortnights in a year, compared to 12 monthly repayments.
You can update your repayment schedule in a few simple ways:
1.Online
Update your repayment frequency through Online Banking.
2. Over the phone
Call us on 13 13 86 and we can make the change for you.
3. In branch
Pop into your nearest branch and speak with one of our friendly staff members.
Utilise lump-sums
Every now and then, a lump sum comes your way, whether it’s a bonus, tax return or unexpected windfall.
It can be tempting to spend it, but putting that money towards your home loan can make a real difference. A one-off repayment reduces your loan balance, which means you’ll pay less interest over time.
It’s a simple move that can help you get ahead sooner on your journey from owing to owning.
Understand the power of an offset account
If your loan includes a 100% offset account, you’re in luck. An offset is a simple and effective way to reduce the interest you pay on your home loan, and help pay it off sooner.
Every dollar you keep in your offset account can reduce the amount of your loan that interest is calculated on.
For example, if you owe $250,000 on your home loan and have $10,000 in your offset account, interest is only charged on $240,000.
This is because the balance in your offset account reduces the amount your lender calculates interest on each month. This helps you save on interest, while still keeping your savings available when you need them.