Own Your Home Sooner
Do you want to own your home
sooner. Here are a few tips that will become the fundamental
ingredients that you can apply over and over again.
Work out a budget and stick to it!
Get to know what your living costs are, and budget for the
things you want to buy. A budget calculator has been provided
in the Free Consumer Download Pack for you to assist you with
your budget.
Make fortnightly repayments.
Your interest is calculated daily. By paying every fortnight
you are not letting the interest accumulate for a full month
before paying it.
Make your salary work for you.
It may be in your interests to have your salary paid directly
into your home loan account and redraw your living costs as
and when you need them. Your principal and interests get paid
before anything else and your savings can actively reduce
your home loan. Speak to your mortgage broker to help explain
this further to make sure it is the right strategy for you.
Make lump sum payments when
possible.
Try and contribute tax returns, cash gifts, inheritances or
anything else you can to your home loan. You’ll be surprised
at the huge difference this can make.
Pay just a little bit extra.
If you can, pay a small amount extra with each repayment even
if it is only $10, also your income will no doubt increase
during the course of your home loan. When this happens allocate
a percentage of your increase to your loan repayment. Again
this will save you a fortune over time.
Keep a keen eye on short term
debt
Credit card and store card interest is much higher than the
interest you pay on your home loan. If you like to use a credit
card, chose one that gives you an interest free period, and
be sure you pay the debt in full every month.
Get rid of expensive debt
If you do have credit card or store card debt that you cannot
pay out, speak to your mortgage broker about using the equity
in your home to drastically reduce your interest costs. A
note of caution here, try to make more than the minimum repayment.
Although the interest rate is less, it is over a longer period,
so if you allow it to continue it may eventually cost you
more.
Get regular home loan health checks
It is important to get your mortgage broker to review your
home loan as your circumstances change. The home loan industry
is very competitive, and lenders are continually updating
and changing products. Make sure you have the home loan that
best suits your needs.
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LOOKING FOR A BETTER
DEAL ?
Whether you are buying your first home or refinancing
Prosperity Mutual can help you save money on your home loan
and guide you from initial consultation stage all the way
through to settlement. Our company prides itself on providing
its customers with a personal service second to none. Services
operate in Sydney, Canberra and Melbourne.
CONTACT US TODAY ON 1300
854 667
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