Looking for tips and suggestions.

Posted anonymously, 20th September 2018

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  • If by any chance you have $500…. pay that off the principle. If you can do this little by little, it will come down!

  • Also, make a budget and stick to it. Saving unnecessary spending and putting it towards your loan as an additional payment can bring down your monthly interest.

  • I work as a mortgage broker. Some of the simple tips we offer are – Make weekly payments, this will mean money is going off your loan more often so can save you interested. While having an offset account is a great idea – sometimes you get better value out of having a basic loan with a lower rate. You can still deposit your extra money straight into the loan with most of these types and then redraw the money back out when you need it.

  • Check your rate every year and make sure your getting the best deal. Pay any bonus or pay rises, tax returns etc straight off your mortgage if you never have it you can’t miss it.

  • I’ve never had one so I’m not speaking from personal experience, but I know people who try to pay extra every month to help bring it down quicker

  • Has anyone used any of the tips from the Barefoot Investor?

  • Fortnightly payment and offset account is a good idea – any other tips?

  • Switch from monthly to fortnightly payments. That’s possible for me with the variable part of the mortgage, not the fixed one. When you have some extra money (for example money back from the ATO) make an extra repayment. You will pay less interest with repayments, even if they are just ten dollars a month. Everything counts.

  • Making payments on a weekly basis will enable you to reduce the interest on you loan, although you need to ensure that there are no penalties for making extra payments.

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