Majority of Australians are paying mortgage faster, you can too…

Pay mortgage faster with these effective repayment strategies

Majority of Australians are paying mortgage faster, you can too…

Posted on June 4, 2019 by Mirren Property Investment

Take a moment to feel the relief you will experience once your mortgage is fully paid. With all the repayments, interest and other fees, often times with a long term mortgage, it may feel like we are working for the banks and not much is going directly to our pockets. What can be done to pay off mortgage earlier, in a more organised manner? Many Australians are doing it and so can you.

Majority of home loans are being paid off about 1 to 24 months in advance. Research by Reserve Bank of Australia (RBA) shows that approximately 30% of home loans are paid off two or more years ahead of their scheduled repayment date. Only a low number of 0.2% of borrowers are in negative equity.

This consistency in quicker repayments by the borrowers has been reported by both – the banks and the brokers. The positive financial situation is good news for all first-time home buyers and seasoned property investors.

It’s no secret that the right investment property allows you to have a stable income, given your property is tenanted, and that the strategy and advice we provide will help you pay off your mortgage in as little as 5-8 years, reduce your tax significantly and build for your retirement.

No lottery tickets required! Be Money Smart…we promise it will pay off

Being smarter with your cash allows you to pay off your home loan faster. And the best part is that you can achieve this using the same income and the same expenses you’ve always had.

Housing market

The RBA report states that, “The continuing low rates of negative equity outside the mining exposed regions reflect three main factors: the previous substantial increases in housing prices; the low share of housing loans written at high LVRs; and the fact that many households are ahead on their loans, having accumulated extra principal payments,” Research reveals that the housing market in the capital cities is quite strong as opposed to the speculations of the people. The loan to value ratios are strong and with a strong positive equity for capital cities.

Consolidate to achieve financial freedom

The biggest challenge we find is with credit card debts, car loans and personal loans. These small debts hold you in a 30 year cycle, and you end up with many debts to pay off with a high interest rate. And when the banks post their annual profits, you know a good proportion of that has come from you!

Consolidate consolidate consolidate! Consolidating your small debts into your home loan makes your home loan easier to pay off and more achievable. Generally a home loan will have a lower interest rate, so if you keep paying the same repayment amounts into the one loan, you’ll repay it quicker with less interest.

Rene from Mirren compares consolidation to playing tennis. “If I was playing tennis, and I was served 5 balls at once, which one do I hit, where do they go? I would be lucky if I hit any at all! If it

Paying off mortgage faster is also credited to Australia’s record low interest rates, which are resulting in overall low interest rates positively supporting affordability. This means that Australians are able to pay additional amounts on top of their minimum repayments. Overall, this enables them to be ahead of their mortgage repayment schedule.

was one tennis ball, I’d be able to hit it in the right direction, with control and aim, strength and speed.”

Pay more frequently.

Keeping payments steady, despite the lower interest rates which bring down the minimum payment. Increase the frequency of payments, which will also help you bring down the amount of interest paid.

Same Same but Different – Better Ways of Budgeting

Using the same income and the same expenses you’ve always had, you get a different result. All little tweaks help. Once we consolidate all your different loans, you will generally see the difference in 4-5 weeks.

Financial Security Light Bulb Moment

Many people have that ‘lightbulb moment’ in the initial consultation, when they realise how possible it is to achieve financial security through strategic property investment.

“I want to create financially secure Australians who have choices.” says Rene, “Once you realise what’s possible, you start changing your mindset”.

After we implement the strategies we discuss, clients are able to see progress and change in some cases as early as 3 months.

With a Mirren proven process, your financial pressures will be gone. Find your way out of the rat race, and provide financial security for yourself and your family.

“With education comes knowledge and wealth – it’s a ripple effect.” Rene says.

The Mirren Service

The personalised service you’ll receive from Rene and the team at Mirren Investment Properties is exceptional – with a strong focus on making sure you understand exactly what is happening, every step of the way. Contact us now to book your complimentary consultation!

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