Do all lenders allow you to choose your repayment frequency?

Most lenders do, but not all. The standard repayment term for a home loan is 25 to 30 years. However, older refinancers who may be in their 40s or 50s may not want a loan period of 30 years, so will choose a lender who offers more flexible terms such as 5, 10, 15 or 20 years.

Should I use a redraw facility on my home loan?

No – not if your goal is to pay your home loan off as soon as you can. Redrawing the additional payments you’ve made towards your loan will set you back financially in terms of the time it will take you to repay your loan. However, if you are facing a financial emergency and need funds quickly, using your home loan equity may be preferable to taking out a more expensive personal or car loan, which is likely to come with a higher interest rate.

Can I refinance and shorten my loan term so I can pay off my home sooner?

Yes – refinancing to a shorter loan term is a common way to reduce the amount of interest you’ll pay on your loan. It makes good financial sense to reduce the term of your loan if you can make higher mortgage repayments. Use our how long to repay calculator to find out how much you can save by reducing your loan term, but make sure you factor in the additional costs of switching your loan.

Will I have to pay early exit fees if I pay my variable rate home loan off sooner?

No – early exit fees on variable rate home loans were banned in July 2011, so such penalties only apply to fixed rate, fixed term loans. However, if you do decide to switch home loans , there may be other costs such as application fees to open your new loan. Loan application fees usually range from $200 to $650. If you pay off your loan altogether, you may have to pay title discharge and registration fees, which may amount to a few hundred dollars.

If I'm struggling to cover my loan repayments, can I extend the term of my loan?

Yes – if you’re struggling with your home loan repayments, there are options your lender can offer you to help, including refinancing to increase your loan term to reduce your repayments. It’s important to talk to your lender as soon as you realise you may not be able to make a repayment, as lenders can help customers suffering financial hardship or ‘mortgage stress’ as it’s known.

Can I make additional repayments on my fixed rate loan to pay it off sooner?

Potentially – however, many lenders have caps on the dollar amount you’re able to pay off your fixed rate loan ($10,000 a year is common) or only allow you to make a limited number of additional repayments each year. If you require more loan flexibility, it may make sense to refinance to either a variable rate or a split rate home loan. Savvy compares loans so you can see for yourself how much you can save by choosing a loan with the lowest possible interest rate.