We all need to take out a mortgage when we buy property, and repaying a home loan is most certainly a long-term commitment that will take decades to clear, yet there are steps one can take to reduce the time it takes to repay a mortgage.

Refinance the Home Loan

Shortening the loan term is one way to pay it off faster, and if you can afford higher repayments, you are advised to do so, as you will pay off the principal much faster, and therefore pay less interest. There are many different types of mortgage available, and if you are looking to refinance your home loan, you are advised to examine all of your options, and by talking to an independent mortgage broker, you can make an informed decision. If you would like some further reading on ways to repay your home loan faster, there is a great article on the topic that you can look into.

Money Finances

Image Source: Pixabay

Clear Credit Card Debts

If you find that most of your disposable income is going to repaying credit card debts, this is something you can change, and with debt consolidation loans for individuals bad credit that are available from an online loan provider, you can finally wipe out those credit card debts once and for all. Once this has been done, you will have more money to add to your mortgage repayments, thus finishing the term earlier. Debt consolidation has helped thousands of Australian people to become debt free, and if you would like to know more about this, an online search will help you to locate an online loan provider, who can help you take the first steps to becoming debt free.

Increase your Monthly Repayments

Money Finances Mortgage

Image Source: Pixabay

If you have a home loan that allows you to increase the repayments, and you have some extra money, rather than saving it, you can always pay some additional money every month, which will see you cross the finish line sooner that you had originally planned. Some people decide to make bi-weekly payments, which is a great way to reduce the time it takes to clear the home loan, and if you can afford it, doing this is a very wise move.

Use your Investment Funds

Rather than investing in gold or other valuable assets, you could put this money to better use by paying off your home loan, and when you crunch all the numbers, the interest you will save by doing this is likely to be more than the profit you would have made from the investment. Of course, you will have to crunch the numbers, and when you do, you will be pleasantly surprised at just how much you can save by using investment funds to pay off your home loan early.

As you can see, there are many things that you can do to shorten the time it takes to repay your mortgage, and while it might seem like a struggle at the time, you will reap the benefits in a few years, when you make that final home loan repayment.


Image Source: Pixabay