Maintain your repayment

If interest rates fall, maintain your repayments at the same level.  You are already used to not having the extra dollars so stick to the same repayment amount.

For example:

• $300,000 loan at 7.50% (principal and interest) over 30 yearsMonthly repayment - $2,098
• $300,000 loan at 7.25% (principal and interest) over 30 yearsMonthly repayment - $2,047

By continuing to pay $2,098 per month you would be overpaying by $51 per which could save you $40,000 in interest over the term of the loan and reduce your term by over 2 years!

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Round down your balance

At the start of each month, round your account balance down.

Once the interest charges have been added, make an additional payment to round down your balance to the nearest $10 or if you are feeling a bit flush to the nearest $50. It won’t save you a lot – probably less then $0.10 per month, but it all adds up over the term of the loan. Either way you save and it costs you next to nothing!

It's the first day of December - so what better day to start - do it now!  No, really, I mean it.  Go on, open up another browser and go to your on-line banking page and make the payment.  No, now - what are you waiting for?
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Set up a recurring payment.

Most home loans allow you to make additional payment. Set up a recurring payment that you will never miss. Don’t aim too high. Make sure it is an amount that you will never miss. If you are likely to miss it – you are likely to stop the repayment in the future. Start low and if you can increase the amount over time all the better, but even $10 per week will make a huge difference over time! So how much could an extra $10 per week save you??

Well, you may be surprised to hear that an additional $10 per week could save you around $35,000 in interest over the term of the loan and reduce your term by nearly 2 years. Would you have thought that $10 per week could make such an impact?

If there are 2 of you and you both put in an extra $10 per week your savings could double!!

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