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How to Manage your mortgage more effectively

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March 9, 2013

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While there’s no getting out of mortgage repayments, there are ways to make paying of your loan easier. Here are five proven tips to better manage your mortgage.

Set a Budget

Work out your expenses, fortnightly or monthly and factor inn your mortgage repayments. You might need to cut back on spending in places to make sure your mortgage is a priority. If unsure it is good practise to pretend that you have a mortgage work out the loan size and repayments, take away your rent and put the rest of the money into a savings account. This will allow you to experience what the restrictions will be once you have a loan without making the commitment. It is also a great way to save the money you will require for a deposit and fees.

Cut Your Debt

Reduce the number of credit cards you have (ideally down to one) and their credit limits and keep your accounts in good order. Having a mortgage means taking control of your spending.

Pay More Than the Minimum

Paying fortnightly is another way of shortening the term of the loan. Effectively over the year if you pay fort nightly you will make an extra payment. When extra funds come your way, like tax refunds, put them straight into your home loan as well it will make a huge difference at the end. The more you can pay of the principal the less interest you pay.

Direct Debt

Arrange for your mortgage repayments to be direct debited from your pay, so you always make them on time.

Don’t Be Late

If you’re struggling to meet your repayments, speak to us. Refinancing is one option by extending the term to reduce the payment. We can also apply for hardship and have the payments suspended or reduced. The lenders much prefer to know if there is a problem.

 

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