Saving Tip #1
Pay your repayments fortnightly or weekly rather than monthly. By doing this, you will make the equivalent of an extra monthly repayment per year. This will save you thousands of dollars by paying off your principle and term of the loan quicker.
Saving Tip #2
If you have credit cards, personal loans or car loans on higher rates, why not consider consolidating all your debt into your home loan so you have only one manageable repayment per month or fortnight on a lower interest rate.
Saving Tip #3
Use an offset account to take years off your home loan. The offset account is a savings account linked to your home loan. The money in your account offsets against what you owe on your home loan, thus reducing the interest that you pay. This is a tax effective way to reduce your home loan as the interest you save is not taxable.
Saving Tip #4
Pay your salary direct into your loan. By having your pay going into your home loan, you will only take out what you need, the rest will reduce the loan balance. Set up your repayments so they coincide with your pay cycle. This will maximise the amount of money paid into your loan. This is only effective if you have a loan with free redraw.
Saving Tip #5
Ask us to do a health check of your home loan to make sure you are not paying more in interest and fees than you should be. We have access to a range of different products and lenders and can assess if you are able to refinance to a better product with your current bank or with another lender.