5 Ways to Pay Less Interest on Your Home Loan (Without Changing Lenders)
You don’t always need to switch banks to get ahead on your home loan. In fact, many borrowers can reduce the amount of interest they pay simply by using the right tools and repayment strategies.
Here are five practical ways to save:
1. Ask for a Rate Review
Banks often offer better rates to new customers, not loyal ones. If it’s been a while since you reviewed your loan, it’s worth asking your lender for a discount. A simple call or email can lead to real savings – and PPT can do this for you.
2. Use an Offset Account Effectively
An offset account works like a regular savings account but is linked to your home loan. Every dollar you keep in it reduces the interest you’re charged. Even a modest balance can shave thousands off your loan over time.
3. Make Extra Repayments
Putting even a little extra into your home loan – whether it’s $20 a week or $200 a month – directly reduces the principal, meaning you’ll pay less interest overall and pay off your loan sooner.
4. Switch to Fortnightly Payments
Instead of paying monthly, consider making half the repayment amount every two weeks. You’ll effectively make an extra month’s payment each year, which can reduce your loan term and interest significantly.
5. Use Redraw and Round-Up Features
Some loans offer redraw facilities and rounding-up tools that automatically divert spare change or savings toward your mortgage. Over time, these small amounts can make a big difference.
Ready to reduce your interest and take control of your loan?
Contact Ben McDonald, PPT Capital Lending Manager, on 0448 458 664 or email benm@ppt.com.au for an obligation free Loan Review.
PPT Capital Pty Ltd (ABN 33 283 085 421, Credit Representative Number 393944) has access to a panel of lenders through National Mortgage Brokers Pty Ltd (ACN 093 874 376 / Australian Credit Licence 391209), which is a fully-owned subsidiary of Liberty Financial Pty Ltd (ACN 077 248 983 / Australian Credit Licence 286596). PPT Capital Pty Ltd has access to products including those from Liberty Financial.
