So often the focus is on getting the home loan the best rate, fees etc but the real benefits come in taking a few extra steps to ensure you are above average.
Here’s what you can do:
- Pay less interest – keep your savings inside your mortgage. Offset accounts are ideal.
- Get the best rate home loan you can; use the money you save to pay down the mortgage.
- Don’t get lured by fancy mortgage options; what you really need is a good rate, a goal and dedication to paying it off.
- Add more to your minimum repayments. $5, $10, $100, $1000 whatever. Just add more.
- Have a portion of your salary put directly into your mortgage.
- Pay lump sums onto your mortgage; a big deposit will cuts years off your loan.
- If you get a pay raise, halve the extra money you make and pay it towards the mortgage.
- Set your repayments to fortnightly or even weekly. On average, you can cut your loan term by around six years by doing this.
The key thing here is you don’t need to do everything. Just making a few of these changes will make a dramatic difference to your loan. These are just a few simple changes noted.
We are focussed on being both practical and purposeful. You need a life, we get it. But making a few of these simple changes will ensure you have a life now as well as in the future.
