Accelerating Repayments
One way to save on interest with a home loan is by accelerating repayments. Accelerating your repayments means that the borrower makes extra repayments on their home loan to shorten the length of their loan term, with the added bonus of saving on interest. An example of this is by adding an extra $300 per month to a $300,000 home loan, with an interest rate of 7 percent, you could save over $100,000 and reduce a 25-year loan by six years and seven months.
If you are in the market for a home loan, check out the table below which shows variable rate home loans with an interest rate of less than 7.85 percent.
RateCity