Top Tips for saving on your home loan – Part 1
Everyone wants to pay off their home loan faster. Not everyone knows these ideas and tools that anyone can use, that will save you money. Here is our first instalment of 25 top tips, thanks to our friends at Yellow Brick Road Wealth Management. Work on these, and we’ll share the second half next month.
- Look outside the top 4 banks for lenders and offers out there that can be better for you.
- Pay off your loan weekly or fortnightly – it will make a difference over the life of the loan.
- If interest rates drop, keep your repayments at the level they were before the fall to get ahead without tightening your belt.
- Choose a loan with offset or redraw.
- Put your salary into your home loan, and then use it as an interest free period credit card to cover your daily expenses.
- Use a credit card program that allows you to convert points to caseh, then use that cash to pay down card balances, keeping more cash in your home loan.
- Put your annual tax return straight into your home loan.
- Don’t take up an ‘Interest Only’ option – always pay Principal + Interest.
- If fixing yoru rate, make sure you can pay off additional payments on your loan, otherwise you restrict your ability to accelerate the reduction of your debt.
- Know what your fees are, for your home loan and bank transaction account. The lower the fees, the faster you pay off your loan.
- Know your home loan rate and how it compares – it all adds up.
- Know the payout penalties attached to your loan and how long they apply.