Loan Repayment Strategy

Loan Repayment Strategy

Posted by Mike Keehan on 9 November 2011 | 0 Comments

Tags: Interest Rates, NZ Home Loans

One way clients can get ahead with their loan repayment plans is to ask our Client Care team to take away some of their surplus funds from their loan account from time to time. You do lose the access to this money, but your loan balance reduces by the amount that is repaid; quite an effective way of shortening your loan’s life. You can do this as often as you like, and usually at no cost.

Obviously, you should keep enough money available to help with emergencies and cover yourself for additional needs, but if you can do without a portion of your surplus funds, then it might just be useful to adopt this strategy every now and again.

Another way to achieve a similar outcome is to commit to paying more than is required on a monthly basis while you can afford it.