For most households, the single biggest expenditure is their mortgage repayment. So if your mortgage repayment is your single biggest expense, it would make sense to review it regularly and work out how you can be saving money. There are several ways you can save both time and money.
- Check your interest rate
With interest rates sitting a record low, it makes sense to do a quick check on what rate you are currently paying. Chances are, you are paying too much. Interest rates are low and the home loan products out there are very competitive. Speak with us about having a free health check done on your home loan.
- Adjust your repayments
Most banks will set up your repayments to occur monthly. But did you know if you make your repayments fortnightly, you end up making 2 extra repayments a year meaning you are getting slightly ahead. Go even further and make weekly repayments and you can get ever further ahead on your mortgage. Extra repayments will not only save you interest but can reduce the length of your home loan.
- Add a little more to each repayment
Do you think you could find an extra $50 a fortnight? If so, you should increase your repayment and add a little extra. This may not seem like much but the impact will be significant over time.
- Make additional repayments
Do you get a tidy tax return or get some cash at Christmas? Consider putting this to good use and adding it to your mortgage. Some home loans may have restrictions about how much extra you can pay off so check this first. Making additional repayments will again reduce your overall interest paid as well as cutting down the length of your loan.