Up the frequency
Have you ever thought about the difference it could make paying your mortgage fortnightly, instead of monthly?
Think about it. Paying $1,500 fortnightly instead of $3,000 monthly means you’ll effectively sneak in an extra month’s worth of payments on your loan annually (26 fortnights per year = 13 ‘months’ instead of 12). This small tweak can make a big difference and could help shave years off your home loan.
Ignorance is bliss – except when it comes to your mortgage. It’s tempting to faithfully make your repayments each month and leave it at that, ignoring you have a commitment to yourself (and your mortgage) to keep up with industry news. However, you could be missing out on some big savings.
Keep up on interest rate changes, new products and broader market trends that might allow you to negotiate a better deal or open up an opportunity to slash your loan period. Refinancing could reward you with huge savings on your current loan.
A home loan shouldn’t feel like a never-ending burden. If anything, staying in control of your loan and finances will liberate you – by having a full understanding of how to navigate your home loan, you can free up your finances to do all the things that give your life an extra little kick.