Let’s be honest, we all love to find money we didn’t know we had.
There is nothing sweeter than finding $10 note in that pair of jeans you haven’t were in a few weeks. After all, happiness is all about the small wins.
Well, we are about to show you a few ways on how to find significantly more than $10. In fact, it will be like having that feeling about 15 times a month. The cherry on top of the cake; You win and you know who loses.
What is the trick? Follow these 3 steps and make your hard-earning monthly repayments to go a lot further.
1 – Switch to weekly repayments
This is by far the simplest and easiest thing to do and can save you up to 30 months of repayments. The best part; It doesn’t cost you anything. Just simply change your payments from monthly to weekly.
What sort of sorcery is that? It all comes down to how our calendar year is structured. Every calendar year has 52 weeks. But 52 weeks divided by 4 (number of weeks in a month) equals 13 months.
Considering most banks will simply offer a minimum monthly repayment, by switching the payments from monthly to weekly, you are paying off an extra month per year. Considering most home loans have a 30 year term, you are essentially saving 30 monthly repayments.
2 – Switch your savings account
We have a question for you… What is your current home loan interest rate? We bet it is far higher than what you are getting from your saving’s account interest rate! By simply using your home loan account as your savings account, you reduce the home loan interest repayments and reduce your loan term as well.
Generally speaking, for every $1,000 you leave in your home loan as “savings”, you reduce your mortgage term by 1 month. Obviously this is a rule of thumb, but if you would like to discuss our particular situation, contact us.
There is only one catch. You need to have an Offset or Redraw feature to your home loan. Which leads us our third tip.
3 – Switch Lenders
We are all obsessed with our phones, right? Every year, we have to have the coolest and the latest model with the biggest screen etc etc.
Your home loan is very similar. Every few months, banks release new and improved home loan products that could potentially be a better fit to your unique situation. Just like upgrading your phone, you can upgrade you home loan and possibly find lower interest rates, more flexibility and features allowing you to pay off the home loan sooner. Best of all… Unlike upgrading your phone, you will be saving money instead of spending it.
Where to from here?
Don’t they say the best things in life are free? Well, our free home loan health check is not a Free trip to Paris but can certainly help you pay for one. Give us a call today for a no obligation chat or fill out the form below and we will give you a bell.