Page 4 - Winter Edition 13 - August 2019

Continued..

Ways to get Mortgage Free Faster

• Round your payments up to the nearest $100. The extra money reduces the principal,
meaning you pay less interest.

• When you get a pay rise or a bonus, put it straight into your mortgage.
• When your interest rate drops, the bank will drop your payments, but tell them you

want to keep making the same repayments. If you keep your monthly payment the

same, you can wipe more of the debt faster.
• Shorten your mortgage term. It’s common now to be offered a 30-year mortgage term.

But see if you can manage 25, or even 20, years. Making it shorter means you’ll pay
way less interest. A mortgage costs more for every extra year it runs.

• If your bank offers it, choose to have your home loan payments increased by a set
amount every year on the anniversary of the mortgage.

Earn more

If you can find ways to earn more and pay those earnings into your mortgage, you’ll win
in the long term. Can you ask for a promotion, get an extra job part-time, get a flatmate,

rent rooms on Airbnb, or start a part-time business?

Spend less
Don’t buy that new car and definitely don’t put it on the mortgage. The interest rate may

be lower, but you’re paying it for many more years, making you worse off in the long run.

Beware of rolling credit card debt into the mortgage.
Diary a date regularly to review your mortgage and look for new savings.

Ask an expert

Consider using a mortgage broker. They get paid by the banks, not you, and can
sometimes they can help negotiate a slightly better rate.

Article from JUNO by Diana Clement

Chris Grantham

Your local property specialist
0274 960 959 c.grantham@barfoot.co.nz
"Bringing it all together"