Owning your own home, the great Australian dream, also comes with responsibility and financial strain. There is no point in sugar coating the fact that to gain and maintain a home loan it takes some careful planning, hard work and a good budget.
Finding a reputable agent in Liverpool, like ours at Prudential Real Estate, can make the process of finding the perfect home far easier. But once you have the loan and the home we want to see each of our clients’ dreams grow and go on to help create bigger dreams.
For this reason we have compiled some tips to help you get ahead on your loan and manage it better.
How often are your payments?
Interest is calculated on a daily rate. This means the longer you go without making a payment the more interest accrues between times. The best way to pay your loan off is to make more regular payments.
Making sure your loan repayments align with your income is also wise. So if you get paid on a fortnightly basis this is how often you should make loan repayments. Instead of making monthly repayments go for fortnightly or even weekly.
Make extra payments
The advice of making extra payments may seem obvious but you would be surprised how many people don’t do it. If your loan allows, any time you have any spare cash put it into the loan repayment. If you get a lump sum payment in the way of a tax return or work bonus then it makes sense to put this straight into your loan payment, provided it won’t incur extra fees, et cetera.
Don’t pay less
At times we are lucky enough to see a drop in interest rates, which means your repayment amount lowers. Although it may be tempting, don’t take this as a sign to pay less. If you are able to afford to continue to pay the same amount then do so.
If you were paying this amount already you won’t be out of pocket but you will be paying your loan off faster.
Ask your bank
Of course, as your real estate company we are here to offer tips; for in-depth questions about your loan as well as how to improve it, we suggest you have a discussion with your bank. Each lender is different and there will be different ways in which you can make a dent on your loan quicker depending on institution it is with.
For some tips on finding the best home loan you can follow this link to our site http://www.prudential.com.au/find-the-best-home-loan.html. To find the perfect home, contact us at Prudential Real EstateLiverpool today.