Reduce Home Loan

Saving money on your home loan

Saving money on your home loan. Who wouldn’t like to save some money on their home loan ? It is possible to save a lot of money on your home loan with some discipline. How ? Ok you might have to make some sacrifices but try to put R100,00 extra towards your monthly home loan payment. It sounds strange, but by increasing your repayment on your home loan you shorten the period and reduce the amount that you need to pay interest on.

It has some cool advantages

  • You are debt free sooner
  • You save a considerable amount of money & fees
  • It improves your credit rating which might reduce rates on subsequent loan

Debt Reduction example

By paying of more as the minimum you pay less in the end? Take for example a home loan of your average town house R500,000 at 8.5% interest and 20 years. By paying just R100,00 extra above your minimum required every month you will save R35,971.24 on interest charges and you will have paid of your property in approximate 18 years 10 months 14 days. That is a whole 14 months earlier. Now imagine if you could pay an extra R200,00 per month.

Saving money on your home loan

We know life isn’t balanced and there are months it is just impossible to pay extra, but give it a try anyways. Even if you are not always able to pay extra, try to put any savings at the end of the month in your loan repayments. Every little bit helps. In the end you will save money on your home loan

Debt Reduction Calculator

We have made a neat and easy to use debt reduction calculator. Feel free to use it and test some scenarios
Calculate your own savings here.

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