As parents who have to pay the mortgage and bills whilst still managing to provide a happy and safe environment for our children, we rarely sit back and appreciate how much money we can really save with minimal effort.
Here a five tips from Recharge My Loan on how you can help put more in your pocket than in the bank profits.
Tip 1: Know what your home loan interest rate is and what fees are being charged
Did you know that almost 80% of Australians, when asked, do not know what their current home loan interest rate is. If your interest rate is over 4.50%, guess what? You are letting the banks win and take thousands of dollars each year than could be in your pocket.
Tip 2: Stop being lazy and doing nothing about it
Yep, that’s right the reason why most people do not know what their interest rate is everyone is too ‘busy’. Let’s be honest, it’s due to being lazy. If you’re loan is $400,000 and you can save 0.50% on your interest, that’s $2,000 every year in your pocket. That could help pay for your next holiday, car, school fees etc
Tip 3: Put your savings into your home loan so they work for you
Most loans these days allow you to pay surplus into them or come with an offset account. Why would you have money in a ‘savings’ account which earns you only 2%- 3% interest when having the same money in your home loan, which you can still access if you need to, will save you 4%- 5% using exactly the same money.
Tip 4: Ask your bank for a better deal
They say that good things come to those who wait although we believe that better things come to those who ask. What possible harm is there in picking up the phone and asking your bank for a better deal. If they say yes, then yippee and if they say no, it’s time to follow tip number 5.
Tip 5: Review your loan
With access to a lot of banks and lenders, mortgage brokers can often find you the best offer they can AND they sometimes even pay you cash back whilst saving you thousands of dollars every year.
Do you have any other tips to add to the list? Please share in the comments below.
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