Rate increase: 5 ideas to save you money

14 Jun Rate increase: 5 ideas to save you money

Posted at 13:58h in Financial Tips, Homeloans, Interest Articles by Matt Crook

With the .5% increase to the cash rate (as of 7/6/22) we want to know how we can save money on our home loans. Here’s 5 ideas that can save you money.

1. Setup your home loan repayments to weekly or fortnightly

By setting up weekly or fortnightly home loan repayments you will have at least one extra repayment per year, saving on interest.

2. Consider an offset account

An offset account is an everyday bank account that’s linked to your home loan. Here’s how it works: Deposit your salary and savings into the account, by using your offset as an everyday transaction/savings account you save on interest.

3. Get the best deal – review your home loan

Make sure your loan has been reviewed in the past 6 to 12 months.

Did you know we saved our clients over $50k in the last two months by reviewing their current home loan rate?

4. Pay extra from day one

Ensure you are paying principal and interest on your home loan

5. Understand what a rate increase will mean to your repayments

Know the numbers! Understand what a rate increase will mean to your repayment.

Here’s a tip: Start paying extra now so you are covered for future rate increases.

Let’s not hit the panic button when interest rates rise, let’s make smart decisions and save money where we can. Do you need help with your home loan? Contact Finestream today!