How to save more on your home loan in 2019


How to save more on your home loan in 2019

If you’re like us, it’s after the hubbub of Christmas that real downtime kicks in.

That’s when we start to shift focus to the year ahead and ask the kind of questions that create change.

What are your goals? What matters most? And how are you going to take those little steps that make the bigger things possible?

If saving money on your home loan is important to you, then these tips will help you do just that in 2019.

Check your interest rates

Making sure you’re not paying too much interest on your loan is the easiest way to make a dent in lowering your mortgage costs.

This is as easy as going to a mortgage broker and asking them to review your existing loan. If a more attractive loan is available, they’ll handle the refinancing process for you. 

It may sound like a hassle, but taking time out to see what other loans are out there could save you thousands over the life of your loan.

According to Senior research analyst at Canstar, Josh Sale, if you already have a good amount of equity in your property, you’re likely to have more success with securing an attractive interest rate on your loan.

Sale told news.com.au.

“If you have more than 20% equity in your property there’s a number of lenders out there advertising comparison rates under 3.6%.”

Bump repayments up

Increasing repayments by even a small amount will make a marked difference to the overall interest you end up paying over the life of your loan. 

Stuart Symons, the spokesperson at People’s Choice told news.com.au.

“If you can afford it get into the habit of paying a bit more every month or every repayment than [the minimum],’’ he said.

“It gives you a buffer … if it’s set and forget and comes out of your regular account not only are you paying off your loan faster you are saving a tonne on interest over the life of the loan.”

If you happen to secure cash through a tax rebate, pay rise or by other means, Symons also recommends taking advantage of this windfall and adding it to your loan.

“Think about how you can use that kind of cash to get ahead of your home loan and pay down a bit more debt,” he said.

Looking to save more on your loan?

We can review your existing loan and make sure you’re not missing out on easy savings by refinancing to a cheaper rate.

If a more attractive loan is available, our brokers will make sure it matches your goals and circumstances, which means you get a solution tailored to you.

We’ll handle the refinancing process for you, and we have finance professionals in the residential, commercial and investment loan sectors. 

Contact us about a loan review today.

 

Financial Advice Disclaimer: This information is general in nature. Mortgage brokers do not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.


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