Want to pay down your mortgage quickly or even save for a deposit for your home?
Well Kim and I have found a solution, and it’s not rocket science either, because we’ve done it and are living it.
We have found that the simple practice of living a more sustainable lifestyle and living within your means is the key to successfully paying down your mortgage quickly.
There’s no magic formula. No ten step process.
Just honest to goodness living as well as growing some of your own food, cutting down on consumption, and banging as much spare cash as you can onto your offset mortgage account, you can save a small fortune in interest payments.
Here’s the key. By using an offset mortgage account when you first take out your mortgage, any extra money you put into that offset account gets offset daily against your outstanding loan balance, therefore reducing your loan term.
Not only do you save swags of interest, but the actual mortgage gets paid down quicker.
We treat our offset account like one big savings account, throwing as much as we can into it. We can draw some cash out if we need to without any fuss but it takes a few days to appear in our normal bank account which often stops any impulse buying.
All the time that extra money sits in your offset account, the better off you are in the long run because it is reducing your loan interest each and every day.
Now this is only my opinion as I am not a registered financial adviser, but let me tell you that as we started to live within our means, our mortgage has dropped significantly.
So it goes without saying that if we can do it, you can too!
Just to prove that there’s no magic behind our method, here’s a National 7 News spot I did last year about how living a more sustainable lifestyle can help enough save money to pay down your mortgage quick smart!
And the great news is that we’re still on track to be mortgage free for late next year. That’s when the fun really starts!