How Many Years Will It Take to Pay off The Clients Mortgage?

Mortgage brokers should be knowledgeable about the elements of a mortgage to successfully assist their clients with any questions or concerns they may have. If a client approaches their current mortgage broker to inquire about how many years it will take to pay off their mortgage, the broker should be able to explain that most Australian home loans last from 25 to 30 years depending on the individual home loan terms. 

The type of home loan, its terms, interest rates, and features can affect the lifespan of an individual’s mortgage and home loan. A client or mortgage broker can also calculate how long it will take to pay off a mortgage by using an established mathematical formula or an online loan payoff calculator. The formula for calculating how long it will take to pay off a mortgage is as follows:

• N = (-log( 1- i * A / P)) / log (1 + i)
• A = amount owed, P = payment size, N = number of repayments, i = interest rate

Or search for Mortgage Street How Long To Repay Calculator

A client with an existing mortgage can pay the amount owed faster than originally expected by making extra mortgage repayments in addition to the scheduled monthly repayments. Any additional repayments made will be put towards the loan’s principal amount. Consistent additional mortgage repayment can allow a client to save money on their home loan while also paying it off quickly. 

Mortgage offset accounts are another option for clients looking to save time and money on their home loan repayments, allowing them to make deposits into the account. The accounts balance will then be offset against the current amount owed on the home loan, resulting in the client only paying interest on the balance difference.