Unless you win lotto, there’s no way of getting out of your mortgage. Here are 5 ways to make paying off your loan easier.
SET A BUDGET
Work out your expenses (fortnightly or monthly) and factor in your mortgage repayments. You might need to cut back on spending in certain areas to make sure your mortgage is a priority. Keep a diary of your spending and stick to your budget.
CUT YOUR DEBT
Reduce the number of credit cards you have (ideally down to one) as well as their credit limits, and only use them sparingly. Having a mortgage means taking control of your spending.
PAY MORE THAN THE MINIMUM
Making fortnightly repayments can have a big impact, minimising interest over the long term. Through this strategy you will essentially make 13 monthly repayments over the course of a year, rather than 12.
This extra month’s repayment helps reduce your principal, which can potentially save thousands in interest repayments over the life of your loan.
When extra funds come your way, like tax refunds, put them straight into your home loan as well – it can really make a difference in the long term.
Arrange for your mortgage repayments to be direct debited from your pay, so you always make them on time. Making payments on time ensures you wont pay more interest than you need to.
DON’T BE LATE
If you’re struggling to meet your repayments, speak to your mortgage broker. It may be possible to restructure your repayments or consolidate other debts into your home loan under certain circumstances.