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MORTGAGE AND LENDING FOR YOUR NEW HOME

IF YOU ARE LOOKING TO BUY A NEW HOME, MAKE SURE YOU TRUST IN YOUR FINANCIAL ADVICE. WE CAN HELP OUR CLIENTS WITH THEIR SEARCH FOR A NEW HOME.

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Six tips to paying off your mortgage sooner

Your home is a large investment and can become a financial strain. But it doesn’t have to be. Our financial specialists have come up with some handy tips to help you pay off your mortgage sooner than the agreed time frame. These are tried and tested methods and can save you a lot of money, without having to sacrifice the things you love. If you are looking for mortgage services in Australia, contact our experts at Coral Horizon.

Know the details

Before you make any commitments to paying off your loan sooner, you will need all the relevant information at your fingertips.

  • How much do you owe in total on your mortgage?
  • How long do you have to pay it off?
  • How much is your monthly instalment?
  • What other financial commitments do you have?

Once you know where you stand, you can start getting smarter with your loan.

  1. Consolidate your financial commitments

Many of us build up small debts over time, which individually, may not seem like a lot, but ultimately means paying higher interest rates and unnecessary fees, which can land up keeping you in debt longer than you think. This can land up impacting your current lifestyle. By bundling all your financial commitments into one loan, you can get a far clearer picture of what you owe, and potentially save yourself a lot of money. If you qualify, consolidating your debt by refinancing your home loan, is a highly effective way of bringing down your overall monthly payments and paying less overall.

  1. Make fortnightly mortgage repayments

If you’re not already making fortnightly payments, you should seriously consider changing your home loan repayments from monthly to fortnightly. This can make a huge difference over time to the full amount that you pay back on your loan. Of course, if you do change your repayment frequency you may need to be more mindful when it comes to managing your money. One way of doing this is to align your pay dates and repayment cycle. Even though it may take time to adjust, you could keep thousands of dollars in your pocket that you would otherwise pay in interest.

  1. Use an offset account

An offset account is a type of lending arrangement, generally for mortgage bonds, which can potentially save you thousands of dollars over the lifespan of your home loan. The offset is essentially a savings account with your bond lender. Your salary will be paid into your offset account. Now, instead of receiving interest on your offset/savings account, your interest repayable is paid on the net balance of your loan account minus your savings account.

For example, if your loan is $500,000 and you have $50,000 in your offset account, you only pay mortgage interest on the $450,000. This will reduce the amount of interest you pay, reduce the amount of time to pay off your loan, and save you money in the process.

  1. Increase your repayments while rates are low

Australia is currently experiencing exceptionally low interest rates, sitting at a record low of 1.50% set on 2 August 2016. Interest Rates in Australia averaged 4.87 percent from 1990 until 2016, reaching an all-time high of 17.50% in January 1990. Use these rates to your advantage by keeping your mortgage repayments at the same level as what you were paying before the decrease. You can cut up to two years off the life-span of your loan, simply by paying an extra $20 to $50 on each payment.

  1. Pay lump sums into your mortgage or offset account

Consider paying any lump sum payments such as a tax refund, work bonus, dividends or inheritance into your mortgage. You don’t have to pay the full amount, but these once-off payments can seriously reduce your home loan.

  1. Perform a mortgage health check

Every now and again you should speak to the specialists and see if your loan is working hard for you. Are you getting the best rates and terms, and is your bank looking after you? If your current loan repayment plan is no longer a good fit, you might want to consider re-financing. Getting a better interest rate could also potential save you thousands of dollars over the lifespan of the loan.

Lending and Mortgage Broker Cockburn

Taking out a mortgage to buy your home is often the biggest financial decision and investment you will make in your life. With so many variables and different factors to understand, making this decision can be intimidating. There’s no need to try to navigate this maze of information on your own.

Coral Horizon’s mortgage brokers in Cockburn will assist you in your search for house financing by assigning a property finance professional to you. With Coral Horizon acting as your regional broker and business professional, we do all the work for you. This includes researching suitable products, finding the one that best suits you, negotiating the best rates, and then supporting you through the application and settlement process. With us by your side, you can rest easy that you will get the best products at the best rates, hassle free.

As independent brokers, we take an unbiased view, allowing us to make smart decisions based on facts and data, not emotion. Our brokers will work with you from the start, taking the time to assess your needs, find a solution, and then help with the application, paperwork and documentation.

When it comes to mortgages and home equity loans, contact our friendly team or call us on (08) 9417 8211.

Get in touch today!

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