THE TOP 5 TIPS TO SAVING MONEY ON YOUR LOANS
#1 Tip – Reduce your Monthly Payments
Do you have multiple loans such as personal loans, credit card and home loans?
Personal and credit card interest rates are significantly higher than your home loan rate.
By consolidating these loans on to a lower interest rate, you will be able to free up your cash flow and therefore use the additional cash for other purposes. (Maybe even pay more off your mortgage).
#2 Tip- Using a Zobel mortgage broker will allow you to…
Revisit your loan structure and compare a wide range of lenders who are often able to provide you with a better/cheaper loan.
Banks often only recommend their loans, which may not necessarily be in your best interest.
You have nothing to lose by comparing your current debt with what the market has to offer.
Just 2 of the benefits and outcomes.
- What you have in place will be best suited to you.
- Your interest rate will be the best option available.
BTW.. There’s no cost to you other than a few minutes of your time.
#3 Tip- Get an Offset Account.
A mortgage offset account is essentially a transaction account that’s linked to your home loan.
To put it in layman’s terms, if you had a home loan of $350,000 and you had $20,000 sitting in an offset account, your interest would only be calculated on $330,000.
This option could allow you to pay your home much faster.
There can be restrictions with this strategy having a fixed loan. We can answer this for you in more detail.
#4 Tip- Choose between fixed or variable loans (Or Both)
Fixing your rate will provide you with certainty around knowing the fixed costs of your loan.
There are some fantastic fixed rate loans available currently & many lenders are keen to get your business.
If you have uncertainty around what direction interest rates will go, or you believe interest rates are low, you may want to have the peace of mind of a fixed component within that loan.
This will also provide you flexibility giving you fixed costs and also add the flexibility of adding additional payments to your loan.
Some lenders also allow the option to fix a part of their loan & the remainder of the loan on variable.
This can also provide some certainty around what your fixed costs are, with some additional increases or reduction in interest payments.
#5 Tip-Review your existing Loan structures
The lending market couldn’t be any more competitive.
Competition for your business is tight right now, and banks are keen to lend their money. That means a win for you.
If you haven’t reviewed your loan for some time (say the last 2-3 years), It’s probably a great time to do this now.
There’s every chance your Zobel broker can find you a better deal. Save money on interest payments.. That sounds good to me!
Where to from here?
The next step is really over to you. But you have choices.
You can do nothing (and hope/pray for the best.), try and fix it yourself (and hope/pray that you get it right.), or you can sit down for a coffee / chat with someone who understands the lending process, gets how you’re feeling and how important these decisions are to you and your family and has a proven track record of success with helping people just like you through these uncertain times.
We want to be that person for you!
So then, the next step is a simple 10 minute, free of charge phone call.