Your home loan is absolutely the biggest and most important loan you’ll ever take out. Buying a home is a huge commitment and with the home comes the same commitment to your home loan. Why so many people opt for second best on their home loan is something that amazes us at Home Loan Cash Back and iRefund (www.irefund.com.au)
We consider ourselves to be the best value cash back mortgage brokers in the country so aside from allowing us to help find you the best home loan deal AND giving you 100% of mortgage broker trailing commissions back as mortgage cash back every year – here are some simple tips to help save money.
Tip 1: Know your Home Loan Interest Rate
The first step in saving money on your mortgage, is understanding exactly what you’re paying each month. Learning not only what your home loan interest rate is, but what fees you’re being charged can help you to take advantage of better deals when they arrive.
Did you know that around 80% of Australians have no idea what their current interest rate is for the home loan? If you don’t know the details of your mortgage, then you’re letting the banks you’re working with potentially take thousands of dollars from your pocket every year! Knowledge is power, so get educated!
Tip 2: Stop being Lazy
Okay, this tip might seem a little harsh, but bear with us.
We know it can be easy to allow yourself to fall into a habit of simply ignoring your mortgage repayments. You just keep on paying those fees, even if you don’t know exactly what they are, and claim you’re too busy to make a change.
However, if your loan is around $400,000, and you can save a tiny 0.50% on your interest rates, that leads to another $2,000 in your pocket every year. Not to mention all the upfront commissions that you can earn, and trailing commissions from Home Loan Cash Back. In this particular case, that’d be $1,300 up front, and $25 a month!
All you need to do to earn that cash, is commit to making a change.
Tip 3: Make your Savings Work for You
How flexible is your home loan?
These days, most mortgages will allow you to pay a surplus into them, or may include an offset account where you can supplement your mortgage with extra savings. Why would you bother using these?
The better answer might be why you would consider using a “savings” account that only earns you between 1%, and 3% interest on your cash, when having the same amount of money in your home loan could earn you 4-5% in interest? You save more, earn more, and you can still access your savings if you need to!
Tip 4: Ask for a Better Deal
They say that good things come to those who wait. The truth is that the best things come to those who ask for them. There’s really no harm in asking your bank to give you a better deal. As awkward as it might be to pick up the phone and request a more appealing interest rate – trust us when we say it’s worth it.
The worst thing that can happen is that they refuse to give you a better offer. In that case, all you need to do is move onto our fifth tip!
Tip 5: Review your Loan
Finally, if your loan just isn’t working for you anymore, then change it.
With access to a host of different lenders and banks, mortgage brokers and advisers like Home Loan Cash Back can help you to make sure that you’re getting the very best deal on your mortgage. Not only can we save you money on your interest rates, but we can also ensure that you’re getting money in your pocket every month with our trailing commissions.
With Home Loan Cash Back, you take control of your loan.
