With interest rate continuing to hover at all-time lows, now is a good time to get on top of your finances and better manage your debt.
Here are a few tricks to help:
1. Build a manageable budget
- With many home buyers living at home for longer periods before buying their first property, making regular debt payments may become challenging. The best way to manage new debt or a change in your financial obligations is by building a manageable budget.
- A ‘good’ budget will factor in all of your regular spending habits, showing you how much you spend each month and how much you can save.
2. Review your mortgage annually
- All borrowers including first home buyers, should review their mortgage on an annual basis to make sure they are still in the right product for their needs.
- It’s important for borrowers to review their home loans regularly, especially in a low interest rate environment where competition amongst lenders is so strong. Lenders want business and are willing to reduce their interest rates and offer significantly discounted rates in order to win customers.
- By reviewing regularly you may find there is a better product available that could help you to save hundreds, if not thousands, of dollars.
3. Review your spending habits
- For those who are concerned about managing their debt, it may pay to review your spending habits and see where you can cut costs and identify where you spend money frivolously.
- Making the effort to go through this exercise will put you in a much better position to better manage your ongoing debts.
As always, if you have any other thoughts or questions regarding your loans or future financial needs, or would simply like a free home loan health check to help you undrstand your options, please don't hesitate to give me a call to arrange an appointment or even a simple chat.
Michael Wren & Geoff Pyers
Owners & Directors - Mortgage Choice Camberwell
Owners & Directors - Eastern Financial Pty Ltd operating as Mortgage Choice Financial Planning Boroondara