As the region celebrates Mortgage Freedom Day, the reason to become truly free of mortgages becomes more apparent when comparing how much of your annual income is spent toward that goal. There are 5 steps you can take toward ridding yourself of those payments: remortgage, overpay (unless your lender has fees against this), offset your savings against the loan,reducing the term of your loan so you can see that end sooner, or be sure to pay fees upfront versus lumping them into the loan.
- You can celebrate your ‘mortgage freedom day’ when you have earned enough in the year to cover your annual mortgage payments.
- To avoid paying more for your mortgage, particularly before the introductory period ends, try to remortgage to get the best deals.
- So as to pay off your debts quicker, consider overpaying on your mortgage payments but check if your lender charges a fee for this.
“While the concept of mortgage freedom day offers an insight into regional differences in affordability, there are a host of factors influencing how affordable your home loan really is in comparison to your earnings.”