Ways to pay off your loan faster.

Learn how small changes to your loan repayments now may mean you could cut years off your loan and save yourself thousands. 

Pay fortnightly.

You could consider paying fortnightly rather than monthly. This means that, in effect, you'll make two extra payments in each year resulting in you paying off your loan faster and saving on interest costs long term. 

Watch the savings add up

Example: $500,000 home loan at 3.69% p.a. for an initial term of 30 years.

Switch to fortnightly payments: pay half your minimum monthly repayment every two weeks.

Result: save over $47,000 in interest costs and pay off your mortgage 4 years earlier.

Increase your loan payments.

Putting extra money towards your loan repayments - even a small monthly amount - can knock years off your loan term and save you in the long run. With a fixed rate loan you can increase your regular repayments to a maximum of 20% of your minimum repayment set in your loan agreement. And if you have chosen a floating loan you are able to increase your repayments to any amount at any point you choose. 

Watch the savings add up

Example: $500,000 home loan at 3.69% p.a. for an initial term of 30 years.

Pay more each fortnight: just an extra $50 a fortnight above the minimum repayment.

Result: save over $29,000 in interest costs and pay off your mortgage 2 years and 4 months early.

Repay the same amount when interest rates drop.

If you're refixing your home loan at a lower rate, or you have a floating or offset home loan and your interest rate drops, keep your repayments the same and you'll pay your loan off faster.

More of each payment goes towards repaying the principal, which pays off the outstanding balance faster and reduces your overall interest costs.

Pay off lump sums.

Use a lump sum to reduce the outstanding balance on your home loan. If you're on a floating rate loan, you can pay back all or part of your loan at any point over the term without incurring additional costs. Learn more about early repayments

Watch the savings add up

Example: $500,000 home loan at 3.69% p.a. for an initial term of 30 years.

Pay off a lump sum: pay $30,000 to reduce your home loan balance.

Result: save over $20,000 in interest costs.

The above scenarios are demonstrative examples only and do not take into account your personal situation or goals. Every loan transaction differs, so please feel free to contact us to review your specific loan situation.

Calculators.

Find the best option for you with our home loan calculators.

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Things you should know.

Interest rates are subject to change without notice. Westpac's home loan lending criteria and terms and conditions apply. An establishment charge may apply. A low equity margin may apply. An additional fee or higher interest rate may apply to home loans if the application is accepted but does not meet the standard lending criteria.

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