Can you imagine being mortgage free?

Getting a loan shouldn't be about ‘set and forget’.

There are simple things you can do to help pay off your loan faster.

Here are a few tips to fast track your financial freedom.

1. Make your repayments as high as possible

When interest rates fall you maybe tempted to pocket the difference, but keeping your repayments at the previous level will shave a significant portion of principal off your loan.

Another way to do this is by rounding up your repayments. For example, if you are paying $794 a fortnight, why not make those payments $800?

2. Have a loan with a balance of floating and fixed interest rates 

Splitting your total borrowings between floating and fixed rates gives you the flexibility to make extra repayments on the portion of your loan on floating, while still having certainty on the portion of your loan that has a fixed rate.

How you split your loan will depend on your individual circumstances and your goals.

3. Pay loan fees and charges upfront  

Pay establishment fees and legal fees up front rather than capitalising them into your loan. This will save you thousands of dollars in interest over the loan term.

4. Stick to your budget  

A mortgage is a big part of your life - you want to have a plan to make sure you pay off as much as you can, but you also want to be able to enjoy the lifestyle you want.

Find the right balance of reducing your mortgage while still enjoying life. The best way to do this is to have a plan and a budget, and stick to it.

5. Align your repayments with your income cycle  

If you have a revolving credit facility, where your salary is directly credited to your loan, changing your repayment dates to match your income cycle helps you to take advantage of the money sitting in your account for as long as possible.

6. Pay any inheritance or savings straight into your mortgage  

Whenever you have some extra money, don’t put it in the bank where it will earn little interest that will then be taxed. Put it directly into your mortgage and take it back when an expense crops up if you need to.

7. Have the right strategy that will help you get out of debt faster  

There are many ways to knock years off your loan, but sometimes it seems hard to figure out what will work for you. A home loan tailor-made for your circumstances and a long term plan are the best ways to pay off your loan as fast as you can while still enjoying the lifestyle you want.

Apex Advice Group0800 500 510mortgage@apexgroup.co.nzwww.apexadvice.co.nz

DisclaimerThe information contained in this publication is general in nature. It may not be relevant to individual circumstances. Before making any investment, insurance, mortgage or financial planning decisions, individuals should consult a financial adviser.

Copies of Apex Advice Group disclosure statements are available on request, free of charge.

CreditsPhotos:• Slide 1 - Stevensons arm, Wanaka,NZ – Jo Munday• Slide 6 – Finding Balance – woodleywonderworks• Slide 8 – Pay Here – Wapster• Slide 10 – Checkbook - jridgewayphotography• Slide 12 – Aligned Cups - Jean-Etienne Minh-Duy Poirrier