BECOMING a better budgeter, wising up on spending and making the most of any savings can help borrowers master their mortgage and own their home outright sooner, according to Australia’s largest independently-operated mortgage broker, Mortgage Choice.
Company spokesperson, Belinda Williamson said, “If your goal is to pay off your home loan sooner, the beginning of the year is a great time to set new financial resolutions.”
“Challenge yourself to ramp up your home loan repayments by readjusting your budget and finding ways to make extra contributions to your mortgage.
“Well thought-out saving, spending and loan repayment strategy decisions can help put you months or even years closer to living mortgage free. Keep in mind even small financial changes can have a big impact on how much interest you pay over the life of your loan and the length of your loan term.”
Mortgage Choice offers these financial resolutions to help borrowers own their home outright sooner:
Become best buddies with your budget
If you don’t already have a budget, the New Year is the ideal time to start one.
Slash your cash limit
Consider ways to cut your daily spend. For instance, a daily caffeine hit at $4 per weekday equates to $80 per month.
Review your home loan with a fine-toothed comb
There could be under-utilised loan features costing you money or features worth refinancing for. Get to know your loan’s features.
When rates fall, keep repaying more
If your home loan’s interest rate has recently fallen, consider keeping your repayments at the higher, pre-fall rate.
Make the move from monthly to fortnightly
Switching your monthly repayment to fortnightly may make a significant difference to your loan term and the interest owed.
For home loan tips, trends, facts, data and other information, visit MortgageChoice.com.au or call 13 MORTGAGE.