Willow & Reed Private

I love these tips. 👏
So simple but often overlooked.🤦

Who would've thought, paying MORE OFTEN would mean paying down your loan sooner. Interest is accrued daily and charged weekly, fortnightly or monthly (depending on your frequency). Each repayment you make, pays down some of your principal as well as covers the interest for that period. If you made repayments every week then you are paying down your principal sooner with each payment which means the interest accruing is more often on a lower amount each week as opposed to waiting a whole month to reduce your principal and subsequent interest calculation. Talk to us today to see if your current set up is the right one for you.

Off the back of that, pay more towards your loan, either by increasing your repayment amount above the minimum or putting money in a redraw or offset account. Every dollar counts. Whatever saved cash you have, if your interest rate on your home loan is higher than your high interest savings account then your money is working more for you sitting in your redraw or offset account (and bonus, you don't have to pay tax on it, but please speak to your accountant to confirm this for your individual situation). Less loan amount to calculate interest means more towards your principal.

Talk to us today.
We can do a mortgage makeover. Check that the mortgage is the right one for you not just the lowest rate.

Remember, nothing is free and if it's too good to be true then it probably is. Don't shop on rates only, shop on features combined that will help you pay down your home loan sooner.

Refinancing is not just about getting the lowest rate possible. Nothing is for free!! If you opt for a lower rate, chances are there will be higher fees, limited facilities to your loan, etc. it's important to balance out the rate with the features you want or need in a loan to ensure it is the right PRODUCT for you, it necessary the lowest rate for you.

For example, if you put extra into your loan each fortnight or month or you have money sitting in your redraw account constantly, getting the lowest rate possible might not work for you as you will likely not have an offset or redraw facility. Therefore finding a competitive rate that has those features to allow you to maximise your savings and have your money working for you not against you.

Talk to us today.
We can help.

Some people don't even realise their current home loan has a redraw facility.

Take the time to understand your home loan and the features it currently has. A redraw facility can boost your savings capacity but also help reduce the amount of interest you will pay over the life of the loan, if used correctly.

Have a chat to us today. Let us do a quick review of you home loan and see if your current home loan continues to be the right one for you.