Can I pay more than the minimum repayment on my home loan?

You can always pay more than your minimum repayments and in most cases, it’s a good idea to do so if you’re able to.

With most home loans, you are normally paying off both the principal and the interest. Taking into account a typical home loan, the early years see most of your payments go towards paying off the interest more than the principal.

If you can pay off more than your minimum repayments, this will cut your interest bill and make the home loan shorter overall (due to paying it off sooner).

You should always check to make sure that you’re allowed to make extra repayments. Some loans don’t allow you to do it and for those that do, there might be a limit on how much you can repay. Fixed rate home loans generally don’t allow extra repayments, so make sure you check your contract first.

Another option that becomes available once you start making extra repayments is being able to pay off your loan early.

At the end of the day, making extra repayments can cut your loan by years and can save you thousands. It is really worth looking into as a little savings can go a long way!

Updated on: 04/05/2023