PHOTO: Canna (pictured) said the first thing she and her husband did with their home loan was look for a ‘principle and interest’ loan, rather than just the interest
- A financial adviser from Sydney revealed her tips for paying off your home loan
- Canna Campbell said there are five things to do to find the perfect provider
- She said avoiding the temptation to take out an interest-only loan is a mustmortga
- Find a provider that is flexible and promotes loyalty to the brand
- Saving money isn’t the only benefit when you pay off your home loan fast
1. Don’t opt for an interest-only loan
Canna said the first thing she and her husband did with their home loan was look for a ‘principal and interest’ loan.
‘We wanted to make sure that the moment we took out our home loan, the minute we were on track with our repayments,’ she said in a video.
Canna said while it might be easy to be tempting to take out a home loan on interest-only terms, doing so is a ‘dangerous trap’.
‘When the five-year interest-only term expires, the reality kicks in and you’re five years older and five years closer to retiring,’ Canna said.
If you are on an interest-only home loan, she recommends you shop around and switch to a principal and interest home loan provider.
‘We are in a record low [interest rate] environment, so use this time in your favour,’ she said.
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