Gomm Finance: How to Save Big Bucks on YOUR HOME LOAN

 In Buying, Investing

We are now in the midst of a Federal election campaign where voters have a very important decision to make, one which will impact on the future of our nation over the next 4 years. Similarly, most Australians have an important decision to make when it comes to their home loan. Getting the right loan at the right price is critical to ensure you save big bucks. How do you do this?

Save time and money by seeing a mortgage broker. There is no cost to you because brokers are paid by the bank and they have access to a wide range of lenders so they are a virtual one stop shop. Even if you had time to shop around and approached say 5 different lenders and chose the best of those, chances are there was a better alternative elsewhere. Mortgage brokers also provide a free ongoing service so you can contact them at any time to review your existing loan or for advice on any other aspect of your loan. You have a relationship with them so you don’t have to explain yourself each time you contact them and most brokers have many years experience.

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If you have an existing loan, you can also go online to see what other banks are offering and then call your bank to see what they can offer. You’ll be surprised how much you can save just by making a call. You just have to ask. If they don’t want to play ball then find a good mortgage broker.

Tweak your loan payments. Consider paying half of the monthly payment on a fortnightly basis. There are 26 fortnights in a year so this method means you pay the equivalent of an extra monthly payment each year thereby potentially reducing the term of your loan by 4 or 5 years.

Deposit any windfall payments into your loan account. Think bonuses, tax refunds, private health fund and/or medicare refunds etc. If you receive a pay rise, consider increasing your loan payment by the same amount to save big bucks. ING Direct have a quirky feature called Everyday Round Up where you can elect to round up any purchases on your debit card to the nearest $1 or $5 with the round up amount being deposited to your home loan. A great way to save big bucks.

If you have surplus funds lying around consider using an offset account. An offset account is an everyday savings account which is linked to your home loan for interest calculation purposes eg: if your home loan balance is $400,000 and you have $20,000 in your offset account, you only pay interest on the net balance of $380,000. Some banks offer up to 9 free offset accounts so rather than having separate savings accounts for the kids, a holiday account, a bills account and a rainy day account, why not set up separate offset accounts thereby saving you big bucks.

Got more questions? Feel free to give the team at Gomm Finance a call on 63802377 or go to www.gommfinance.com.au

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