Why Make Extra Repayments?
Yes it's tough at the start. Mortgage repayments are often higher than rent in the beginning, but remember - it won't always be that way. Going without the things you want to make extra repayments isn't easy, but every bit you pay off your loan decreases the interest you pay.
At an interest rate of 5%, every $10,000 extra you manage to pay off your mortgage you will save a little over $40 of interest a month. After you've paid $20,000 extra off your loan you'll be a bit over $80 better off every month. Your sacrifice in the beginning soon pays off.
If you want to make extra repayments and own your home sooner, we highly recommend reading The Barefoot Investor by Scott Pape. It's a humorous guide to money that gives you the tools you need to pay your debts off and own your home sooner. In The Barefoot Investor Scott recommends contacting a cash-back mortgage broker so that you receive the trailing commission refund on your loan each month. That's what we offer at Cash Back Mortgage Broking. Read about how a cash-back home loan works here.
A cash-back mortgage broker will be happy to chat to you about the best types of home loans for making extra repayments, and the lowest home loan interest rates available. Just give us a call or use the contact us page.