The Power of Extra Payments
When you're juggling a mortgage, life, and maybe a family, finding extra money can feel impossible. But even small amounts can have a massive impact over time.
The Magic of Consistency
Here's what happens when you add just $50 per week to your mortgage:
Scenario: $500,000 loan at 6.5% for 30 years
- Standard payments: $3,164/month → Total interest: $639,220
- With +$50/week: $3,282/month → Total interest: $526,489
Savings: $112,731 and 5 years earlier payoff!
Easy Ways to Find Extra Money
- Round up payments - Round your mortgage to the nearest $100
- Use windfalls wisely - Tax refunds, bonuses, inheritance
- Cut one subscription - That streaming service add up
- Make bi-weekly instead of monthly - Automatic extra payment
- Refinance to a shorter term - Force the extra payments
The Compounding Effect
The earlier you start extra payments, the more powerful the effect. That's because interest is calculated on your balance - lower balance means less interest, which means more of your payment goes to principal.
NZ-Specific Tips
- Most NZ banks allow extra payments without penalty
- Some let you set up recurring extra payments online
- Consider offset accounts if your bank offers them
- Check if your bank has specific "fast-track" programs
Start Today
Use our calculator to see your exact savings. The best time to start was yesterday. The second best time is today.