r/AusFinance • u/jennis89 • 1d ago
Mortgage advise Debt
Hey team looking for some unbiased mortgage advice if anyone can give their opinion.
Iv got $590k left on my home valued at around $850k and 25 years left on my current home loan. When I renew should I renew for 24 years or lower or renew for 25-30 years to have a lower min payment but make additional payments each month to pay it off quicker?
My financial advisor has said take the loan over longer period to reduce the minimum payment each month to reduce your required monthly outgoings but do the additional payments to pay off quicker.
Also at the moment I pay around 300 extra per month into my offset account so it is slowly building up it’s around $40k, is it better to pay that 300 extra directly into the home loan or keep topping up offset so it’s lowering your interest on the repayment.
What is your all take?
1
u/walkin2it 1d ago
Haven't run the excel calcs but I'm guessing it'll translate to about the same for you.
I reckon your broker will get more commission however as their commission is probably calculated on the assumption you will pay it off with the regular payments over the life of the loan.
There's heaps of YouTube tutorials on how to create a mortgage calculator.
I've given you the above with all care and no responsibility or calculations, it's purely instinct. Good luck.
Edit: I forgot to ask, is it the same interest rate for both? If there's a different interest rate it changes things.