DATE: 17/01/2013
CATEGORY: Blog, Home buying, Interest rates, Mortgages

8 ways to save money on your mortgage

Don’t fall into the trap of trying to negotiate interest rates with the banks. Mortgage experts have more negotiating clout and know how to get the big guns to sharpen their pencils.
If buying a property try and stretch your deposit that little wee bit further. Even an additional $5k will save you a lot of interest over the term of your loan. If you’re an existing home owner why not rally together a little bit of extra cash and pay a lump sum off your mortgage.
Check in for an annual warrant of fitness. Banks can get complacent and challenging what you’re paying in rates and fees can pay big dividends. If your existing bank won’t come to the party another bank probably will!
Avoid having money in a savings account as this can be better used to offset your mortgage. With a revolving credit facility you can retain access to your funds.
Make smart decisions when floating or fixing. Don’t gamble if you can’t afford to get it wrong. In times of uncertainty look for certainty.
If you’re lucky enough to get a pay rise or come into some extra cash put a little toward your mortgage.
Choose a payment plan and ensure your home loan is tailored to your specific objectives and situation, rather than copying what your friend or workmate has done.
Get to fully understand how your mortgage works and how the interest you pay is calculated. You may be surprised that most of the money that you’ll pay to begin with is going to go to interest. Click on our repayment calculator to find out how it works and to see, if you pay a little extra, how much money you can save.