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Forget carpooling. Here’s how to really save money this year.

Save money on your mortgage

With so many tips being shared on ‘how to save money in 2018’ (tips that don’t go anywhere near your home loan, mind you – which is generally your biggest monthly expense), we wanted to create our own list.

Here are 17 ways you can save money in 2018, that don’t involve carpooling or cutting down coffee consumption.

  1. Give us a call 😉
  2. Set up an extra direct debit pay day to pay a little more into your loan – every little bit helps.
  3. Make sure all your income is being paid into an offset account (if you have one).
  4. Make sure your offset account is actually linked to your loan. Some lenders will now allow you to have multiple offset accounts, so if you like having separate accounts for each of your children for example, make sure each account is properly linked to the right loan. Otherwise, you’re missing out on saving interest.
  5. A credit card is not free money. If you don’t have the cash in the bank, don’t pay for it with credit.
  6. Do not pay interest on your credit card, just because you got distracted when you logged into your bank account last week and forgot to schedule your credit card payment. Set up an automatic payment so the bill is paid in full on the due date. It save you time, but also ensures you won’t incur penalties.
  7. Providing you have the cash, use credit when you can. It means that cash stays in your offset account for longer. And even though it might only be a small amount, every day a dollar stays in the offset account, you save interest.
  8. Use your credit card points. Redeem points for vouchers and use them to buy groceries, petrol, anything you like really. If you’re using your credit card to cover expenses, the points can accumulate quickly.
  9. Talk to us about consolidating any personal loans into your home loan. But just remember that you will need to make additional payments into the loan, you don’t end up paying your 10k personal loan back over 30 years (and therefore incurring more interest as a result).
  10. Consider a combination of fixed and variable rate loans. It’s not a guaranteed way to save interest, but if a good fixed rate comes along, it can help you to effectively manage your budget.
  11. Borrowers who can comfortably meet their loan repayments often pay more than they need to, simply because they can afford to. There’s never urgency to change things, so it’s not a priority. Book in a home loan review to ensure this isn’t happening to you.
  12. Depending on the type of loan you have, your lender may provide insurance discounts or other special offers. Make sure you’re using all the benefits you’re entitled to, because you’re likely to be paying for them under the loan package you have.
  13. Know what’s happening in the market.  An easy way to do this is to read our emails and make sure you’re following us on Facebook. We’ll let you know about any special refinance rebates, fixed rate deals or rate rises suspected.
  14. Stay organised and know where your money is going. It’s hard to save money, if you don’t know where it’s currently going. Go old-school and export your account details to excel, so you can then categorise the expenses. Alternatively, find a free app to help you to track things.
  15. Stay on top of your tax returns. You could be missing out on refunds – which would be better off in your (offset) account. And if you’re not sure whether you’re claiming everything (particularly if you have investment properties), get an accountant to help you.
  16. Talk to us to find out how to negotiate additional rate discounts with your existing lender. You don’t always need to refinance to get a better rate. Sometimes it’s just a matter of saying the right things to the right people.
  17. Think carefully about the type of loan repayment you’re making. Interest Only rates are now higher than Principle & Interest rates (and have been for some time), so you need to carefully consider which type of repayment is best for what you’re trying to achieve.

 

Please let us know if you’d like some assistance to implement some of these.

We’re here to help.

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