The Great Australian Dream has been a long held belief that home-ownership can lead to a better life and is an expression of success and security. For most Australians, home-ownership is achieved through saving a deposit and funding the balance via a home loan from a lending institution, such as a bank, building society or credit union.
Whilst the home loan agreement may help you enter the housing market sooner, as opposed to waiting to save a sufficient amount to purchase outright, it’s important to remember that this will most likely be the largest debt that you pay off in your lifetime.
As such, it’s vital to take a proactive approach when it comes to paying off your home loan. This will help you to not only reduce the amount of interest that you pay, but also decrease the life of the loan so that your cash flow can be freed up sooner and be targeted towards other areas, such as saving and investing for the future.