By making principal and interest repayments rather than interest-only payments, you’ll:
This is because your principal and interest repayments may be higher at the end of an interest-only period than they would be if your loan didn’t have an interest-only period.
You can choose monthly, fortnightly or weekly repayments to suit your needs – for example, if your income is paid weekly or fortnightly. Changing you repayment frequency to match may help you manage your finances more effectively.
The sooner you pay off your home loan, the less interest you’ll pay in the long run.
So if you find yourself with some extra cash – for instance, if you receive a bonus from work – why not make it work for your loan?
By building the equity in your home this way, you’ll be in a better position if you want to do things in the future like renovate or invest.
If you have a standard variable rate home loan, you can potentially pay off your loan sooner by keeping your savings in an offset account. This is because the money in your account is offset against what you owe on the loan, which reduces the interest you need to pay.
With an Everyday Offset1 account, you’ll still have access to your cash if you need it. Plus, you’ll get to enjoy all the other great features of a CommBank transaction account.
If you break the terms of a fixed or guaranteed rate loan, you may be charged an Administrative Fee and an Early Repayment Adjustment – which could cost you thousands. This can happen if you:
Speak to a CommBank home loan specialist before making any changes to your loan.
1Everyday Offset is a feature of our Complete Access Transaction Account which is linked to an eligible home loan, and accountholder/s must also be accountholders of the linked home loan. Interest is not charged on that part of the Home Loan balance equal to the balance of the Complete Access account.