Save on your mortgage payments

There are several ways to reduce your monthly mortgage repayments, which can save you thousands…

Home loan health check

The first step in reducing your mortgage repayments is to find out whether you are paying more than you should be. A so called ‘home loan health check’ will very quickly determine whether there are better loan deals available on the market. Nine times out of 10 there is an interest rate that’s better than what you’re currently paying.”

It is probably best to do that once every couple of years. A mortgage broker can assist you with finding the most beneficial deal you can qualify for.

Reduce your interest rates in line with the growth of your home’s market value

As the value of your home changes over time, so too should the interest you pay on it. Along with the property’s value grows your equity as well, which means that you own a larger proportion of the property than before. Based on that, in many cases you should be able to get better interest rates with better fees and terms.A good mortgage broker can help you find a better deal.

Consolidate your debt

You could consider using your home loan to help you pay less on other kinds of debt you may have such as a car loan. If you’ve built up equity in your home, you may have the option to consolidate the other debts you may have, such as personal loans or credit cards, into your home loan.

Instead of paying the typically higher interest on those debts, you may be able to take advantage of the usually lower home loan interest rate and save on overall interest.

Having said that, you or your mortgage broker will need to calculate the end to end costs, as they are not always more beneficial on the long run. This will depend on the loan amount, interest rates and the length of the lending period.