A standard loan on offer from lenders requires that you pay a portion of principal and a portion of interest on every repayment every month ie. amortising loan. This will ensure that your home loan is repaid within the specified period or term. Paying extra repayment to your loan will also allow you to pay off the loan in a quicker period therefore reducing the interest calculated on your home loan, potentially saving you a lot of interest. Depending on the product that you use, you can split your loan according to the tax effectiveness of the funds that you have borrowed against it i.e if you have

investmentdebt against your home for example, it is better to pay your home loan debt first then when this is paid off, then concentrate on your investment debt. This can also be tax effective for you.