April 01, 2015
For so many of us, the upcoming Easter long weekend provides the opportunity to have a great break, kick back and have some down time.
It’s also a great time to do all those things that you’ve been trying to do for ages but never quite found the time to tick off your list.
One of things could be to have a look at your home loan. Is it working as best as it can for you and is it still meeting your needs?
With interest rates so low and speculation mounting that the cash rate could fall again in the coming months, now is a great time to review your loan.
It’s also a great time to make extra repayments. Any extra money you can contribute to your mortgage repayments makes an even bigger difference than if that same amount was paid off on a mortgage with a higher interest rate.
If you’re wishing to pay off your mortgage sooner rather than later, there are a few easy things you can do, including:
- Refinance your mortgage: With interest rates sitting at historical lows and Australia’s lenders competing aggressively for business through sharp home loan pricing, you may find there is another product on the market that is not only better suited to your needs, but one that boasts a much lower interest rate, saving you thousands of dollars in interest over the life of your loan.
- Continue to make higher repayments: Since the beginning of the year, most lenders have shaved at least 25 basis points from their suite of home loan products. As such, many borrowers would find that their mortgage repayments have dropped. But, instead of lowering your monthly mortgage repayments, it is a good idea for borrowers to continue paying off their mortgage as though rates have not dropped. By continuing to make higher mortgage repayments, borrowers will find they are able to pay off their mortgage faster.
- Make the most of an offset account: If you have an offset account and use it as effectively as possible, you are able to significantly reduce the amount of interest you have to pay on your 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.
So, over the weekend, whilst your indulging in some time off and possibly a little too much chocolate, send me an email to arrange a time to chat. We can talk you through options and do some comparisons - and it’s all obligation free.
Make sure your home loan is working for you - even when you’re relaxing!
Enjoy the break.