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Back to the basics - paying off your home loan

Time and again I am asked...

What is the best way to pay off my home loan? ...and...
What is the best loan product to have if I want to pay off my home loan faster?

The answer to these questions is so simple that it's often overlooked.

It is the spare or surplus funds that you can put into your home loan that makes all the difference. And you don't need thousands, nor do you need to have an overly large income to achieve great results.

Following is a simple table that takes a home loan of $250,000 at the standard variable rate over 30 years, with a comparison that shows how much interest you save and how much faster you can pay off that loan by simply putting in an extra $100 per month, $300 per month and for the big spenders $500 per month.

Take a look and be amazed !!!

$250,000 Home Loan (Principal & Interest; Variable @ 7.07%; Repayment $1,675.03 per month)
Extra Amount paid per month:	NIL	$100	$300	$500
Interest paid over term of the loan	$353,005.52	$285,065.63	$210,445.84	$168,652.29
Total $ paid over term of loan	$603,005.52	$535,065.63	$460,445.84	$418,652.29
Loan term:	30 years	25yrs & 2mths	19yrs& 6mths	16yrs& 1mth
Savings:	NIL	$67,939.89	$142,559.68	$184,353.23

Wouldn't that extra money be better off in your pocket - think what you could do with it!

Book a call online with the Finance Division or freecall 1800 804 296 regarding your current loan and we will review your situation and see if we can optimise your loans for manximum benefit!

Speak with your adviser to see what you can do with any extra funds, so you can reach your investment/retirement goals sooner.

Australian Financial Services Licence No. 241177

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