Paying off your home loan can sometimes seem like a distant dream. You hope to do it one day but aren’t sure if it will ever actually arrive. If you feel overwhelmed with your mortgage and would like to feel more in control, consider the following options.
Where does the money go?
If you’re struggling to meet your mortgage repayments it might be time to look at your spending habits and work out exactly where your money is going. Keep track of everything you spend for a one or two month period and work out where changes can be made. It may mean cutting back on a few little luxuries like coffee and nights out but these are savings that add up. Set yourself a budget you can stick with for the long term and funnel your savings into your repayments.
Multiple credit cards and personal loans make it easy to slide deeper into debt. Consolidate your personal debts and credit cards into a lower interest rate home loan so you’re paying the whole lot off in one go. You’ll save on rates and fees and will be able to restructure your repayments so you can make extra or larger repayments. You may be also able to use the equity in your home to secure a competitive rate for your consolidation loan, something that’s worth discussing with your lender.
Consider the loan you currently have – do you use the features you pay for and is it the most competitive rate available? Refinancing might be an option if it allows you to make extra repayments without penalty, provides an offset facility helping you reduce your interest repayments or gives you a more competitive interest rate. Refinancing often comes with financial penalties and costs so make sure you know exactly what they are before you make any decisions – you might not be better off in the long run. Ultimately you want the mortgage that's best suited to you and your circumstances so contact us today to explore your options.Back « How to make a complaint about your home loan
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