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Tips for saving money on your mortgage rate costs
The following examples are based on a $250,000 mortgage at 9% p.a. for a term of 30 years.
Pay your mortgage fortnightly instead of monthly
make half your monthly mortgage payment fortnightly
this means you will make two extra payments a year
on a $250,000 mortgage you can cut around eight years off your loan term
you will save around $151,000 or 32% in interest rate payments
Increase your regular mortgage payments
pay an extra $50 a fortnight on a $250,000 mortgage
you will pay off your mortgage six years earlier and save 24% in interest rate charges
Shorten your loan term
change a $250,000 mortgage from a 30 year loan term to a 25 year loan term
you could save up to 20% in interest rate charges or $95,000
Pay lump sums off your mortgage
paying $10,000 off a $250,000 mortgage could shorten your loan term by five years*
this would be a 23% saving in interest rate charges or around $108,000
*You may incur a break cost if you make a lump sum payment while on a fixed rate term. Speak to your local Westpac banking consultant to see if this applies to you.
Keep mortgage payments the same if the interest rate drops
you could save money on interest and pay off your mortgage faster
Westpac’s home loan lending criteria apply. An establishment charge may apply. A Low Equity Margin may apply. An additional fee or higher interest rate may apply to loans if the application is accepted but does not meet the standard lending criteria.The information on this page is presented subject to our legal page and any other terms and conditions that Westpac may impose from time to time. It is subject to change without notification.
