What if you could pay off your mortgage sooner than planned? Revolving mortgages are a valid option here in New Zealand - use them the right way and you could be on the fast track to being mortgage-free and pay thousands less in interest.
Of course, that's assuming that you spend less than you earn, and your surplus income goes towards reducing the principal!
Think of a revolving mortgage like an immense overdraft. Your balance goes up and down as money flows in and out of your account. Interest is calculated daily on the balance, so the idea is to keep it low by leaving behind as much money in the account as possible at the end of each pay cycle. They can work well for people with lumpy incomes, because there are no fixed repayments.
Here's more about the different types of mortgages out there.
Occasionally we get questions from readers about how best to manage a revolving mortgage, so we asked David Boyle, Group Manager for Education at the Commission for Financial Capability, for his top tips.