Browse Forums Home Finance 1 Feb 14, 2015 4:19 pm I was looking into buying a house and doing some research and I read that you can pay your loan off faster if you do not pick a principal+interest loan ? Is this true ? After doing more research I think found 2 companies that are giving lectures about how to save money on your home loan What is the quickest way to pay off a home loan ? What loan kind is best for someone earning $4k a week(before tax and super is deducted) assuming the property is $650k and deposit saved is $80k Re: Saving money on your home loan 2Feb 15, 2015 12:46 pm Hi First_sale, There is no strict "one size fits all" answer to your question - other than the obvious: 1 Get a good economic interest rate and reasonable fees (if any) 2 put as much money into the loan (or offset account) as soon as you can 3 and leave it there!! A principle and interest strategy vs an interest only strategy with an offset account comes down to your future plans for the property (and yourself). That said, you should sit with a broker who will work out your future plans and the best way to pay your loan off - for you - you certainly have enough income to pay it down really rapidly. Best of luck! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Saving money on your home loan 3Feb 16, 2015 12:57 pm Hi First_sale, I agree strongly with Bec, there is no one perfect one to pay off a loan faster and save interest as each persons situation is always unique. The best options that we see are: - Having a offset account - Having all your pay and bills go into this account so that every dollar you have is working effectively for you - Any savings you have put it into the home loan so that you are saving interest on a daily basis - Paying off P&I or Interest Only makes no difference if you are doing the above the points Re: Saving money on your home loan 4Feb 17, 2015 9:48 am Hi First_sale, Both Bec and jb_money are right. If you want to pay off your home loan, you have to pay extra money into your loan. The choice depends on your strategy and future plans. Talk to a good broker to plan your future... Cheers, Obu The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18894 brokers will also be in a position to get you a better rate than the advertised rate most times. 6 7533 As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 27272 |