We don't know about you, but we're looking forward to some much needed down time this Easter long weekend.
But with interest rates sitting so low and speculation mounting that the cash rate could fall again in the coming months, the Easter long weekend could also open up the perfect opportunity to spend some time thinking about whether your home loan is working as best as it can for you.
For that matter – are you working as best you can on your home loan?
Whilst Australian's with mortgages are enjoying some of the lowest interest rates in their lifetimes, unfortunately many don't seem to be thinking about how they can make the most out of the current market.
When interest rates are this low, any extra cash you can throw into your monthly mortgage repayments will make an even bigger difference than if you paid off the same amount of money when interest rates were higher. Every little bit that you overpay on your repayments, shaves time off the life of your loan.
So with that in mind and a little extra time up your sleeves over Easter, why not think about paying off your mortgage sooner with these three easy techniques.
1. Refinance your mortgage:
With interest rates sitting at historical lows and Australia's lenders competing aggressively for business through sharp home loan pricing, you could find there's another loan that is not only better suited to your needs, but boasts a much lower interest rate, saving you thousands of dollars in interest over the life of your loan. Use our rate comparison calculator or chat with a mortgage broker to see how much of a difference it could make to your pocket.
2. Continue to make higher repayments:
Since the beginning of the year, most lenders have shaved at least 0.25% from their suite of home loan products. So in most cases, you've probably found that your mortgage repayments have dropped. But, instead of paying off the new, lower repayment, you could aim to continue paying off the mortgage as though the rates never dropped. If you continue to make higher mortgage repayments, you'll find yourself paying off that home loan much faster and saving money to boot! The extra repayments calculator can give you an idea of the time you can save by upping paying more than the minimum repayments.
3. Make the most of an offset account:
Those who make the most of their offset account and use it as effectively as possible, are able to significantly reduce the amount of interest they have to pay on their home loan. So, if you have recently received a pay rise or are expecting to receive a good amount of tax back at the end of the financial year, make sure you feed it all into your offset account as this will help you to offset the amount of interest payable on your home loan.
But, if you don't have an offset account and you're still wanting to find other ways to pay off your mortgage faster, it's worth booking an appointment with your local mortgage broker or financial planner. They'll do all the research and comparing to help you get the right deal on your home loan.
So in between the Easter egg hunts and chocolate gorging, spare some time this long weekend for your finances. It might be worth speaking to your local mortgage broker or financial planner to see whether or not there are other things you can do to pay off your mortgage faster. Your mortgage broker or financial planner will be able to highlight the ways you can make your money work harder for you and ultimately achieve your financial goals sooner.