Is your home loan causing you more stress, than happiness? Mortgages are one of the biggest, and most expensive bills we need to pay monthly. However, they shouldn’t so difficult to manage, that you can’t take any time to think about other financial concerns too, like credit card builds, car loans, and even taking a vacation. Spending time with the family is important, as is giving yourself some time to relax and unwind after weeks slaving away at the office. For most of us, a family vacation can be a wonderful way to not only create fantastic memories with our loved ones, but also get the much-needed rest that we need to revitalise ourselves and prepare for the months ahead. However, if you can barely afford to pay your credit card bills – never mind think about a holiday, then feelings of stress can quickly begin to mount. The good news is that at Home Loan Cash Back, we can give you the guidance you need to save more money on your mortgage, so you can start putting cash towards other places, and feel more relaxed. Here are some tips to get you started!
1. Get a Cash Back Mortgage
Let’s start with the most obvious option. If you’re earning money back on every mortgage repayment you make, then you won’t have to worry as much about how much you’re spending on your home loan. With Home Loan Cash Back, we not only help you to find the best mortgage for your needs, but we’ll also give you half of the commissions we get from your bank too, so that you’ve got a regular cash sum you can put towards your vacation, additional debts, and more!
2. Change your Mortgage
If you’re spending too much on your home loan, to the extent that you’re struggling to make ends meet, then that could be a sign that it’s time to refinance your loan and look elsewhere for a better deal. It may surprise you to learn that a lot of people stick with the same loan throughout decades of their mortgage, just to avoid the hassle of refinancing. However, the truth is that switching to a different loan could save you thousands of dollars in terms of interest payments and fees. All you need to do to get started is speak to a mortgage broker about your options.
3. Set up an Offset Account
Offset accounts can be a powerful tool when it comes to saving money on your mortgage for that next big family vacation, or expensive monthly debts. These unique solutions offer a range of benefits, with the main one being the fact that you can make huge savings on your interest payments. The way this works is that when you link an offset account to your mortgage, the interest you need to pay is calculated on the total amount you owe, minus the amount in your offset account. These savings can really add up when you’re looking for a chance to bring down the total cost of your loan.
4. Make Extra Repayments the Year Before
Finally, while spending more on your mortgage might sound a little counterintuitive when you want to save money towards a big family vacation, if you know that you want to go on holiday one year, spending a little more the year before could be beneficial. When you put extra into your home loan, you can bring down the amount of interest you need to pay overall. This could mean that you have more money each month to save towards that big vacation, or paying off a credit card debt. Just remember to check that your home loan allows for extra repayments before you start digging into the reserves in your bank account, or working extra hours at the office.
