We are always asked, “What’s the best loan?” Although every client’s unique needs present a different answer to this question, the universal answer to this question is “The best loan is the loan you pay off the quickest!”

Rates and fees are important considerations but there are various ways to ensure that you can pay off your loan faster and in turn save interest and many years from your loan term. Here are some actions to consider:

Payment Frequency

Changing your loan repayments from monthly to either fortnightly or weekly. You are reducing your loan balance on a more regular basis since interest is usually calculated daily and charged monthly in arrears. Make your first loan repayment at settlement; this will put you ahead from the beginning. Your first official payment is usually one month after settlement if you choose monthly repayments.

Higher Repayments

As rates come down so will your minimum required payments. If you can make higher repayments without impact to your budget then do so. Treat these extra payments as ‘forced’ savings. If your loan has a redraw facility you can always tap back into these funds if needed.


Place any savings or bonuses on your loan. There’s more benefit in reducing your loan with an interest charge of say 5.50% rather than earning 3.50%. With Redraw and Offset facilities you can access these funds when required.

Loan review

You may be paying more interest and fees than you need to. Let Keypoint review your current loan to ensure that you are getting a competitive rate and fees.  As your circumstances change so does your loan options.