Should I pay extra into my mortgage?

We recommend paying extra into your mortgage whenever you have an opportunity. Doing so can enable you to pay off your bond in a shorter term, saving significant amounts of interest in the process.

For example, If you had a bond debt of R1 500 000 with a 20 year term and 7% interest rate; paying an extra R2 500 into your mortgage every month would reduce your bond term to 13 years and save you R445 042 in interest in the process.

You can use ooba Home Loans’ free online tool, the Extra Payments Calculator, to calculate how much your additional monthly repayments will save you in interest and by how much they can reduce your bond term.