HOW TO SAVE MONEY ON YOUR MORTGAGE IN 2017
By | 15th Feb 17

With the market still performing strong, a lot of lenders and banks are advertising low rates and competitive products. Every little bit counts, so we have compiled some ways you can save money on your mortgage this year!

1. Check your rate - Don’t set and forget, there’s intense competition across lenders at the moment so it’s a great time to revisit your bank or mortgage broker to see if there’s a better deal out there for you. Did you know the majority of Australian's don't know their interest rate? Considering the loan amount, we think understanding how your loan works is important to ensure you are making the most of your money.

2. Don’t be shy to haggle – Not many people know about this but you might want to start thinking about how you can negotiate a better deal. Your lender is unlikely to offer you a better deal unless you are going to switch. Do your reasearch online, speak to your current lender and don't be afraid to ask the hard questions.

3. Consider a fixed vs variable rate – With interest rates at record lows, fixing your rate could give you certainty for a period of time. Make sure you also understand the limitations of fixed rate mortgages before signing up as they don’t always suit everyone. It's important that whatever type of loan you look into, you take into account the loan features and how they suit your property goals.

4. Pay a little extra off your mortgage – Saving money from your daily coffee each week and contributing that $10 or $20 to your usual payments can save you a significant amount in mortgage costs over the lifetime of the loan. The main benefit of making extra repayments is the time you save paying off the loan, rather than being dedicated to servicing the interest.

5. Keep an eye on economic news – Arm yourself with as much information as possible. For many, politics isn’t something they are passionate about, but it’s important to know what’s going on in Australia and also the US as it might trigger an interest rate rise. 

Make a plan and set your budget!

It sounds fairly simple, but truly understanding your finances in detail will help you more than you can imagine. Not only does it set your mindset in the right direction, it allows you to make informed choices with your repayments and cash flow, which all affects your lifestyle. You can draw up your own budget based on your income and expenditure each month forecasting your monthly repayments as priority. There are so many handy calculators that you can access online so don't leave it in the "too hard" basket. Alternatively, you can speak to your mortgage broker or bank as they will have saving and goal setting tools to assist you with your budget requirements. 

If you don't know where to start or it's all a bit overwhelming, get in touch with us to see how we can assist you! Email us to make an appointment today or call 1300 697 356.