There are many ways you can do this: You can start boosting your monthly repayments even by a small amount or you can also make lump-sum payments. One of the easiest ways to reduce your interest charges is by making extra repayments. Over the life of your loan, you will be paying for interest charges, which actually make a bulk of the total amount you are bound to pay. Here are some of the tried-and-tested ways to help you save up some cash and cut your home-loan term: Make Extra Repayments What you need to do is look for ways to shave time off your mortgage term and save big on your mortgage interest.

Think of it this way: while it is true that having a more extended mortgage period means you pay less monthly, you might have been just prolonging your financial burden. In fact, there are times that the accumulated interest charged to you is larger than the home loan itself. When borrowing funds to finance your home purchase, it is essential to remember this principle: the longer you pay for your mortgage, the higher its cost will be. Homeownership takes financial commitment - for the next 30 years or so, you will be allocating a portion of your monthly income to settle your mortgage repayments.

For many Australians, buying a home is the most expensive financial transaction they will ever make.

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