Your mortgage is probably the biggest debt of your life: a significant chunk of your spending each month, the interest rate you worry about most … and the date at which you’ll be mortgage-free hovers like a mirage in the background.
If one of your new year’s resolutions is to get your mortgage under control, there are a few things you can do to make 2020 the year you master your mortgage.
Check your rate
Interest rates have fallen quickly over recent years. If you have a mortgage that’s coming up for re-fixing, you may be surprised at how competitive some of the rates on offer really are.
While economists suggest the best value is in short-term rates at the moment, it’s important to consider your own circumstances first.
As mortgage advisers, we can help you see what’s available and make an informed decision. Rates aren’t everything, but it’s useful to have an idea of how yours compares to what’s available.
Check your structure
Is your home loan structure working for you?
Many people find that splitting their mortgage into smaller portions gives them more control and flexibility around managing their mortgage. You might choose to fix some of what you owe for a short term, some for a longer term and leave some floating.
Once again, being realistic about your circumstances is key. We can give you advice on the right structure to suit your lifestyle and goals.
Check your repayments
Are you paying as much as you can off your loan each month? Even small increases in your repayments can make a big difference to the total amount of interest you pay over the life of the loan.
Consider things such as dividing your monthly payment into two fortnightly sums – this means you’ll make a couple of extra payments a year, getting rid of your loan faster.
Plus, if you have any money sitting in bank savings accounts, you might decide it’s better to put the money on your mortgage as a lump-sum payment, instead. Depending on your lender, you might be able to pay extra payments off your fixed-rate loan without penalties and you will probably find that the saving you make in interest costs dwarfs the returns you can get from a deposit at the moment.
Need a hand?
If you’ve decided this will be the year you get your mortgage under control, get in touch today. Our team at Mortgage Link can help you get the right structure to get debt-free faster.
To get in touch with the team at Mortgage Link, please contact:
021 835 506
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.