Are you looking for ways to save on your mortgage? Try some of these tips.
Increase your repayment amounts
The simplest way to pay off your home loan sooner is to increase the amount you repay. By repaying more than the minimum you can cut the overall term of the loan and save thousands of dollars in interest. The more you pay off earlier on in your mortgage, the more you’ll save over time. Some products may charge you an early payment fee for paying your loan in advance. These costs can be large, so it’s best to always check beforehand.
Consider how mortgage features can help
Think about how using an offset account or a credit card linked to your home loan might help you keep your loan balance low. If you’re looking for ways to keep your interest down, it’s worth investigating what other features your home loan comes with.
Take advantage if there are variable rate cuts
A lower interest rate will reduce your repayments, but if your lender reduces the interest rate, consider repaying more than the minimum loan repayment amount. This can help you save on future interest payments.
Don’t pay the interest-only
An interest-only loan might mean you’re able to make lower repayments for the first few years, but this means your repayments will be larger when it comes time to pay off the principal.
If you’ve had your mortgage for 12 months or more, re-financing might be able to get you a better deal on your home loan. There may be costs associated with re-financing and it’s important to take this into account.
Consider split loans
A split loan allows borrowers to divide their mortgage into both variable and fixed components. You can lock in a low fixed rate on part of your loan. if you only want to limit exposure to the variable rate.
Explore your options
Before you sign on the dotted line, make sure you’ve explored all of your options. It’s worth looking into whether you can get a discounted loan rate with a financial package that includes special rates on other products and services. With just a few easy steps, borrowers can significantly reduce the length of their mortgage and save thousands of dollars in the process. If you’re interested in paying off your home loan sooner, contact your mortgage broker.
How brokers can help: commercial and asset finance
If you’re looking to finance your business, a broker can help you find and secure commercial and asset finance options. Your broker w ill also be able to leverage their network of lending institutions to find you the right funding from the start. Many brokers have a deep understanding of the commercial sector and the w ide range of products available. Using a mortgage broker means you have a variety of lending options at your fingertips.
Managing cash flow
Managing your cash flow is an important part of running a business. You might be invoice discounting. This is where you access a proportion of your debtors’ unpaid invoices through the lender. Or maybe you’re invoice factoring, where the lender takes responsibility for chasing your business’s debts. Either way, your mortgage broker can help you find a solution that works for you.
Finding the right deal
If your business is involved in manufacturing, you’ll need the right equipment and the best financial arrangement in order to remain competitive. This is something your broker can help facilitate.
Taking advantage of flexible options
If you have a variety of financial needs, it can be hard to choose the right lender for each part of your business. But the solution may be to use different lenders for different assets. For example, a business may need a special type of mortgage for its plant and equipment (known as a chattel mortgage), but a finance lease for other assets. Your broker has the ability to compare different commercial and asset finance products with multiple lending facilities to help find what’s right for you.
Investing in your business’s opportunities
A broker’s understanding of the commercial sector and the wide range of products available means they can help you identify and secure commercial and asset funding in order to grow your business. Your broker can be a one-stop-shop for your financing needs.
Author: Alan Faint, http://www.hfcahobart.com.au/