With interest rates being at record lows, you now have the best chance of making a real dent in your home loan. A small change in how you repay your home loan can make a big difference over time. By following these simple suggestions from our lending specialist Warren Richards, it is possible to reduce your debt more rapidly than ever. If you like to eliminate your debt as quickly as possible, then give Warren a call on (03) 9851 0300.
- Consider paying more than the minimum
When interest rates fall it may mean it’s much easier for you to get ahead if you decide to keep paying your current repayment amount, rather than reducing to the minimum required repayment.
- Take a closer look at your current home loan, and find out how well it compares
Rates and loan features are often described on lenders websites, so this is a good place to start researching for the right loan. Just remember that rates change on loans and fees apply, so an interest rate is not the only measure of good value or suitability of a home loan.
Lenders are legally required to include a comparison rate when advertising their loan interest rate. It is made available to help borrowers identify the true cost of a loan and compare the costs of different loans.
- Is your home loan still right for you?
Do you remember what your life was like when you took out your home loan? Were you just starting out buying your first home? Or maybe you had just upgraded or even downsized. Whatever your situation, your current home loan may not be keeping up with the way your life and circumstances have changed. There may be features you don’t use with your current loan that you’re paying for, or new features available that may be right for you.
- Consolidating your loans
Over time, it’s easy to accumulate smaller debts here and there. They may not seem significant. But having many smaller debts could mean you’re paying a higher interest rate and multiple sets of fees. Consolidating your debts into one loan can help give you a clearer picture of what you owe and potentially save you money too. Make a list of your other loans and credit cards, their interest rates and how much they cost you. Speak to your financial adviser about consolidating your loans to potentially save you money.
A small change in how you repay your home loan can make a big difference over time. Here are some ideas to help you get started. If you think the time is right to review your current arrangements, please phone our Lending Specialist – Warren Richards, on 9851 0300”