Often when setting up a mortgage structure, people are focused to the interest rate. This is very important, but even more important, is the actual repayment amount and the rate of repayment.

The actual repayment amount must fit inside of your household budget and it must work for you. Ideally it must be a figure that pays over and above the minimum repayment of the loan.

This is so that your rate of repayment is high and not low. You don’t want to have the mortgage for a 30 year term – where you pay the same amount of interest as the amount you originally borrowed. You want your rate of repayment to mean that you pay your home loan off as fast as you can within your household budget. This will mean that you reduce your overall cost over the life time of the loan.