Increasing payments on a fixed-rate loan

 

Paying your loan back faster can save you thousands of dollars interest. If you can afford to increase your monthly payments, you’ll be better off in the long run.

A few things to consider:

  • You may be charged an early repayment adjustment (ERA) fee if you repay your Go Fixed Rate Home Loan before the end of the fixed term.
 
  • To avoid a fee and still pay your loan back faster than planned, you can increase your monthly repayments by up to $1,000 per month, or $500 per fortnight without fees, provided you maintain the increased payments for the remainder of the fixed-rate period*. So if you can't keep up the increase, you can save any extra money and make a lump-sum payment when the term ends. Any payments above these will incur an early repayment fee.
     
  • Once you’ve increased your monthly repayments, you’re required to leave them at the higher level until the end of your fixed-rate term.
Disclaimer: The information contained on this site is of a general nature and is intended as a guide only, outlining some of the features and benefits provided by Sovereign's Go Home Loans. All home loans are subject to our home loan lending criteria. Early repayment adjustments may apply.  For loans with less than 20% equity a Low Equity Margin may apply. The lender is ASB Bank Limited via its nominee Mortgage Holding Trust Company Limited. The transactional account for Sovereign’s Go Home Loans is provided by ASB Bank Limited.

Rate our page - did you find this content helpful?YesNo

The information contained on this website is general in nature and is not intended as advice. It may not be relevant to individual circumstances and before making any investment, insurance or financial planning decision; you should consult a professional adviser. Copies of our disclosure statements are available on request, free of charge.​