Ever thought about ways to free yourself from your home loan faster?
As a guide, an offset account is one feature that lets you put cash savings to work by reducing the interest charged on your loan. If you have some surplus cash, an offset account provides you the opportunity to earn a strong, tax-free return on your money while making valuable inroads into your mortgage.
Every bit counts
Extra repayments can hold the key to becoming mortgage-free years ahead of schedule. On a loan of around $300,000 repayable over 25 years at 6% p.a., paying just $3.88 (the price of a cup of coffee) extra each day into your loan could see you save up to $38,964 in long term interest. By doing this you could reduce your borrowing term by three years or possibly longer if interest rates are lower than 6%.
Put windfalls to good use
Each year most of us receive an unexpected windfall – a tax refund, an annual bonus or just a gift from family or friends. Adding these cash receipts to your loan is a great way to use money you haven’t yet factored into your spending pattern. It’s guaranteed to make a welcome dent in your mortgage.
Give your home loan a health check
The home loan market doesn’t stand still and neither should you. By checking that your mortgage has remained competitive and still meets your needs you enjoy the peace of mind that your mortgage is working hard in your favour. Give us a call today for a home loan review to make sure your mortgage is in good shape.
Summer Savings Tips
With the summer months fast approaching, often the temptation is to splurge on new clothes, dinners out or expensive holidays. Whilst these activities might seem like a lot of fun right now, they can be very dangerous to your bank balance especially if you are paying off a mortgage. There are plenty of ways to have a great time without blowing your budget.
Contact us for more tips on how you can get ahead.