#1. Ensure you pay your mortgage on time every month. If you don't, it will impact your credit score negatively and your ability to obtain credit in the future. Utilising direct debit so you can 'set and forget' is one of the best ways to keep on top of your mortgage repayments. See point 2!
#2. Make your repayments fortnightly! Did you know that simply by making monthly repayments you make an extra month's repayment each year? On a $500,000 loan that equates to more than $37,000 or almost 4 years off your loan term! Here's the maths... there are 12 months in a year but there are 26 fortnights. If you divide your loan payment in 2 and pay every fortnight, you will make the equivalent of 13 months worth of repayments in 12 months! Easy!
#3. Contact your broker for annual review. This will ensure that your home loan interest rate remains competitive and the right product for you. The best part? It's free!
#4. Let your money work hard. If you have an offset account, ensure that you deposit your salary directly each pay period. Interest is calculated daily so the longer it's in there, the more benefit to you.
#5. Put any lump sum payments you receive, such as an annual bonus or tax refund into your loan account. Try to make this a habit; it actually makes a huge difference and can shave years off your loan!
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