Coaching you through the process of
financing a home, so you can concentrate
on what's really important in your life.

smash your mortgage

Monday, November 09, 2015

Smashing your mortgage is easy when you know how!  heres 7 cunning ideas to save you money on your home loan...

1. Pay fortnightly 1/2 of what you would have paid monthly. (called paying bi-monthly)  So... usually you get to choose whether you want to pay weekly, fortnightly or monthly and at the end of a year youve paid the same amount, but if you work out the monthly amount and pay it fortnightly you will have paid a wopping amount straight off your balance.

2. When you come off a higher interest rate and refix, keep paying the same amount.  Whoever heard of such low interest rates???  Take advantage now and think of how much earlier you'll stop paying your mortgage - all of the extra comes off the amount owing.

3. When you get a bonus or payrise increase your mortgage payment.  Even if you are on a fixed rate most banks will allow you to increase your payments up to a certain amount or % age.  You'll never miss the money and its chomping into your balance.

4. Get offsetting! There are a couple of ways to do this via an offset account or a revolving credit facility.  Both very powerful and flexible.

5. Get a credit card.  WHAT!!! yep, in the right hands they can be very powerful tools and save you heaps of $$$.  Arrange to pay them IN FULL every month AUTOMATICALLY and you pay no interest on them. Mean time use in conjuction with an offset arrangement and you are saving heaps in interest.

6. Stay away from dodgy finance companies offering a quick solution at hideous interest rates and fees.  If your bank wont give you the money theres a really good reason why. You cant afford it.

7. Get your loan structure reviewed.  Some simple tweaks here and there can take years and years off the time it takes you to be mortgage free...  and it feels great!

Remember, its not just the principle you are paying that you save, its the iterest on that, and the interest on that, and the interest on that... well, you get the picture!

Easy eh!  Its my business to take the hard bits away from you so call me for a review of your mortgage.  Or of course if you know anyone who is thinking of buying then Id love to help them too.  I specialise in helping first home buyers who know nothing about the whole process.  And of course my service is free to you. I'm paid by the banks.



Contact us now to arrange a Home Loan, our services are FREE!