Choose fortnightly repayment. This will help to pay off your loan faster because each year you are making extra 1 month repayment.
Refinance. Throughout each year the home loan and financing requirements of people change. Therefore it makes financial sense to review your position at least once a year. There are many new products that lenders release each year and these newer products can help some people to save many thousands of dollars on their traditional “set and forget” home loans.
Utilise offset facility. Some loan products offer full or partial offset facility. If you have an offset facility on your loan account, the lender will set up a saving account attached to you loan account. The interest rate on the offset account is the same as on the loan. Any money you put in the offset account is deducted from your loan balance before interest is calculated. It operates like a transaction account and typically has a cheque facility and a cash card. The interest rates on offset accounts are usually higher than other savings and transaction accounts. All this helps to lower your interest repayment if you use it properly and take advantage of the offset facility. If you have an offset facility on your loan account, you should put your savings and salary into the offset account to reduce your interest repayment. Some loan products have the option of multiple offset account.
