Looking for home loan savings?
Looking for a way to save money on your home loan?
No matter where you are on your home finance journey, there are steps you can take to make some big savings over the long haul!
Find the right loan
It all starts with finding the right home loan for you in the first place.
One of the best ways to ensure you make the right decisions about home finance before you purchase a property is to seek the assistance of experienced mortgage brokers.
Whereas on your own you may manage to do an in depth comparison of maybe half a dozen loan products, brokers can do the same but for hundreds of mortgage options.
Not only that, they can let you know which lenders may let you borrow more, tell you about limited-time deals being run by certain institutions and help you to understand all the costs of home finance.
Change it up
The quicker you pay your home loan off, the less interest you'll pay in the long term.
So it is quite simple: if you want to save money, pay your loan back quicker!
For example, you could make extra lump sum repayments, boost your regular mortgage payment, or increase the frequency of repayments.
Mobilise all your troops
You may want to consider whether a different type of mortgage structure, such as a 100 per cent offset loan and account, may be a good solution. This is when your bank account is linked to your home loan.
That means that rather than having your savings or cheque account balances separate from your loan, these are all in together in the offset account.
The great thing about this arrangement is that every cent you have will be working to reduce your mortgage, not just the standard monthly loan repayment.
And what's more, the more you have in your account, the faster you pay your loan off – great motivation for financial discipline!