Simple tips to own your home sooner

Get the mortgage monster off your back, budgeting can be a helpful loan buster – these simple tips will be sure to help.

Refund Commissions

Refund commissions on a yearly basis. All those nasty commissions you have been paying can be easily refunded using a commission refund service. YourShare, Australia’s award winning cash-back service mentions “When you take out a loan, your mortgage typically generates 0.2% trailing commission for each year you hold the loan. This adds up to thousands of dollars over the life of your loan. On a $500,000 mortgage this is $1,000 in trailing commissions each year.”

Take these commissions and put them towards your home loan, in 10 years you could have reduced your home loan by thousands.

Budgeting

You probably have heard it all before but this is a well known tip that can help reduce your loan significantly. Budgeting will help to ensure that you meet the minimum required to pay off your home loan and can also leave a little left over in case of emergencies. You can even use this to make extra repayments.

Monitor carefully

Treat your home loan like an investment, would you invest $100,000 and just leave it? Monitor the market regularly and be prepared to refinance if necessary. Remember, a 1% decrease on your mortgage is the same as a 1% increase on your investment.

Make it work for you

Shop around. Take advantage of competition between home loan lenders. Look for no application fees or no on-going fees, and remember, commission fees can always be refunded.

Some other simple tips include:

• Paying fortnightly
• Stick to a budget
• Make extra repayments
• Save for a bigger deposit

Written by Nancy Edbergsten – Financial Blogger