1. set a repayment target each year or at the time a fixed rate is due to expire
At the start of every year, set a target of how much you’d like to repay off your home loan by the end of the year (or the end of the fixed rate period).  Then review your budget and plan to pay off at least that much.  You may need to review your repayment target in the light of your budget, but by setting a goal you’re more likely to achieve it.  We can help you set this target.

If you’d like more information contact us.

2. Increase your repayments
If you can afford it, increase the amount of your regular home loan repayments. 

• Let’s say you had a $300,000 home loan with an interest rate of 8% p.a.
• By increasing your repayments of $1,000 by $100 a fortnight, you could save $14,000 in interest costs over 30 years (note that this is indicative only and assumes a consistent interest rate).

3. Make lump sum repayments
If you make lump sum repayments whenever you can you’ll reduce the time it takes to pay off your loan – and the interest you pay.  With a floating interest rate or flexible home loans, you can make lump sum repayments whenever you like for no fee.

If you prefer a fixed interest rate, consider splitting your loan into a number of different fixed interest rate periods.  When each fixed interest rate period expires you can make a lump sum repayment (or even repay the entire loan) for no fee. You can make lump sum payments up to 5% p.a. of the total amount owing during your fixed term (an administration fee applies).  Repayments greater than 5% p.a. of the total amount owing will incur an Early Repayment Recovery fee.  Talk to us about your options.

4. Make more frequent repayments
Choose fortnightly instead of monthly payments.  By paying more frequently you actually repay a little more over the course of a year, so you pay less interest overall.

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The content on our site is for information only. You should obtain professional advice relevant to your circumstances. Our lending criteria, terms, conditions and fees apply to all loans. Contact us for more details. For borrowing over 80% of a property’s value, a Low Equity Premium on a graduated scale will apply. A copy of the Bank’s Disclosure Statement is available from any National Bank branch.