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Worried you'll never pay off your mortgage? ING has a solution

Worried you'll never pay off your mortgage? ING has a solution

Concerned you’ll never pay off your home loan? You’re not alone, with over half (51 per cent) of Aussie home loan holders afraid they’ll be stuck with their mortgage debt forever.

New research from ING has also found that 40 per cent are also concerned they’ll be carrying their home loan into retirement.

Aussie fear of home loan debt is so prevalent that 82 per cent of mortgage holder are paying down “more than what’s required most years”, according to ING. Further, 45 per cent expect to pay off their mortgage at least five years early.

How to get ahead on your home loan

Traditionally, those looking to pay off their home loan early would consider making extra repayments, switching to a lower rate loan or shorter loan term.

However, new technology from ING is enabling ING mortgage customers to do just this by rounding up the “loose change from their card purchases” to pay down their home loan, with Everyday Round Up for Home Loans.

The new digital tool works similarly to ING’s Everyday Round Up tool for Orange Everyday Account holders; which has helped over 160,000 customers to save a collective $32 million since its launch last year. 

“With Everyday Round Up for Home Loans, card purchases made through ING’s Orange Everyday account are rounded up to the nearest $1 or $5 and the extra amount is automatically shifted from the customer’s Orange Everyday account to pay down the mortgage”.

ING’s head of retail banking, Melanie Evans, says this new digital tool is about “helping our customers to stay a step ahead by enabling them to use their small change to pay off their biggest purchase – their home”.

“ING estimates that customers who round up $50 each month to their 30 year owner occupier Mortgage Simplifier mortgage of $350,000 could shave 19 months or save $14,000 in interest by rounding up their loose change,” said Ms Evans.

How much could you shave off of your mortgage

If, one year into your home loan, you started to round $100 per month into your 30-year owner occupier mortgage…

Original loan size

Time shaved off mortgage

Amount of interest saved

$300,000

3 years, 6 months

$42,231.37

$400,000

2 years, 9 months

$43,966.58

$500,000

2 years, 3 months

$45,083.94

$750,000

1 year, 6 months

$46,672.73

$1,000,000

1 year, 2 months

$47,513.03

Calculations based on owner-occupier variable ING Mortgage Simplifier loan paying principal & interest with reference rate at 5.47 per cent.

Considering refinancing?

If you’re thinking about refinancing to another Australian home loan provider, such as ING, it’s advised that you do your research first.

Utilise our comparison tools to search and compare home loans that suit your financial needs and budget. 

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This article was reviewed by Property & Personal Finance Writer Nick Bendel before it was published as part of RateCity's Fact Check process.

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