With all this talk of personal debt this week we thought we would put together a blog on home loan tips to save you money, so you can own your home faster.
For those serious about saving money I have these 8 tips.
1. Review all your options:
Whether you have a home loan or are looking to get one, shop around for the best deal on the home loan product that best suits your situation. Talking to an experienced mortgage broker like me is the best place to start.
2. Pay your home loan repayments fortnightly if you can
By making fortnightly payments instead of monthly you in effect make additional repayments without it really impacting on your family budget and saves you a lot of money over the course of your home loan.
3. Increase your repayments while rates remain at an all-time low
You can cut up to two years off the life of your loan simply by paying an extra $20 to $50 on each payment. Start now while interest rates are at an all-time low!
4. Lump it on your home loan
If you have a windfall coming like a tax refund, dividend or the like, park it on your home loan. Better still if you have a redraw facility you can always access this money later should you need to.
5. Pay your wages into your offset
Paying your wages into your offset account can greatly reduce the interest that you pay, as the interest is debited at the end of the month and calculated daily.
6. Bank fees
Make an appointment to see your bank manager about the bank fees you are paying. They may have the authority to override the system, especially if you are shopping around. Eliminating or reducing any extra bank charges can save significant amounts of money.
7. Access a professional package if you can
Ask me about the “professional packages” on offer from the lenders. The home loan interest rate is usually discounted on which ever loan you choose, and can save you heaps of money over the life of the loan.
8. Beware of honeymoon and intro offers
All good things must come to an end, and most intro or honeymoon rates revert to a much higher rate after a period of time. Beware of these offers as they can end up costing more over the long term.
If you are not sure where to start when it comes to saving money off your home loan, just give me a call on 0417 649 145.