8 tips to save and pay off your mortgage sooner

It’s no secret that paying off your home loan sooner can save you plenty. However, with cost-of-living pressures and rising interest rates, it can be hard to find extra cash.

A series of small changes applied consistently over time could put you on track to reach your goal sooner. Here are 8 tips to help boost your savings.

Tip 1: Make a plan you can stick to

Rather than making extreme changes to your lifestyle and spending habits, focus on a range of savings strategies that will be sustainable. Consider cancelling those streaming subscriptions you’re not using, learn how to cook your favourite meals at home, or opt for a second-hand or DIY option rather than buying brand new.

Tip 2: Automate and separate 

By automating your savings and extra mortgage repayments, you move the money to where it needs to go before you have a lapse in willpower and spend it. Transferring your savings to an offset account may also help you save on interest charges.

Tip 3: Get a home loan health check 

Reviewing the terms of your home loan every two years may help you find ways to save on fees or loan features you don’t need. We can carry out a loan health check for you and help you weigh up your options.

Tip 4: Create a budget and check your progress regularly 

Tracking what you actually spend is the only way to get an accurate picture of your finances. Create a spreadsheet or use a budgeting app such as Mint, YNAB or PocketGuard to categorise your spending and identify where you can cut back to meet your savings goal. Keep an eye on your progress each week to stay motivated and reinforce good habits.

Tip 5: Find extra income streams

Realistically, there is only so much you can save. Another way to boost your savings and make extra repayments is to establish an additional income stream. This could be a side hustle to your 9 to 5, taking advantage of unused assets or selling some of the unused things sitting around the house.

Tip 6: Swap this for that 

There are so many ways to trim the fat without feeling like a scrooge. Swap out an expensive hobby for a cheaper or free one, use cash instead of cards to reconnect with the reality of parting with your hard-earned money or skip a day at the spa for treatments you can do at home.

Tip 7: Make lump sum payments

Rather than spending your tax return or annual bonus, opt to make an extra repayment on your mortgage. Instant gratification is tempting, but remind yourself that additional lump sum payments can affect your total home loan repayments and the length of time it will take to own your property outright.

Tip 8: Consider paying your mortgage weekly 

It may not seem like it would make much of a difference, but changing your mortgage repayments from monthly to weekly may have a positive impact over time.  Because your interest accrues daily, this simple switch could potentially save on your home loan.

Ready to kickstart your savings plan and boost your mortgage repayments? Contact us for professional advice about saving on your mortgage.

 

Tips for nabbing a bargain this spring

The spring sales season is here, but what do rising interest rates mean for this traditionally busy period?

The pandemic’s peak profit-making period has now officially passed, with property prices still falling across much of the country.

However, with rapidly rising interest rates cutting the average Australian’s buying power by 20 percent, it’s important to understand how to negotiate like a pro when it comes to your spring property purchase. Here are our top tips.

Tip 1: Do your research

You’ll be in a better position to make an offer or bid with confidence if your local property market knowledge is up to speed.

We have access to a range of reports that will help you cover your bases. Whether you’re interested in the latest suburb data, or an estimated valuation of a property, get in touch to find out how we can support your research.

Hint: CoreLogic’s weekly Auction Market Previews are a handy resource. They will help you keep your finger on the pulse during rapidly changing market conditions.

Tip 2: Get your finances in order

If you do find a bargain, you’ll want to be in a position to jump on it. Speak to us about organising pre-approval on your finance, so that you’re ready to go.

Pre-approval means a bank has agreed, in principle, to lend you a certain amount of money. Having pre-approval gives you confidence during price negotiations with vendors. It may also give you an edge over other buyers without pre-approved finance.

Tip 3: Find out why the vendor is selling

Understanding the vendor’s motivation to sell may give you an upper hand during negotiations. What type of settlement terms and deposits will be most attractive to them?

They may be moving interstate, or need liquidity fast, in which case they may drop their price for a shorter settlement.

Maybe they need an extra-long settlement while they find somewhere else to live?

Or perhaps a larger deposit would make you more favourable compared to other buyers?

Ask the real estate agent why the vendor is selling and use the information as a negotiation tool.

Tip 4: Get building and pest inspections done 

Building and pest inspections not only alert you to issues with the property such as termites and structural defects, they can also be used as ammo during price negotiations. You may be able to use the findings from the inspection to negotiate a lower sale price.

Talk to us 

Property prices are falling in many markets and there are plenty of opportunities out there for savvy buyers. Get in touch today to organise pre-approval on your finance and be ready to buy.