Buying your very first home is an exciting prospect for anyone, and when all the fees have been paid, you then face the challenge of making your home loan monthly repayments. For some people, at some point, the mortgage repayments can be a challenge to meet every month, and with that in mind, here are a few tips to help make it a little easier to pay your monthly mortgage repayment.
- Consider Refinancing your Home Loan – There are mortgage brokers in Sydney that might be able to find you a better home loan than the one you currently have, and as there are so many different types of mortgage, and by asking an independent broker, you might find one that is cheaper in the long run.
- Take on an Additional Part Time Job – If you are finding it difficult to manage your monthly mortgage repayment, you could do some extra overtime if you are an employee, or if you are self-employed, take on some extra work, which will help with the repayments. If you are finding it difficult to make ends meet, there is an informative guide to budgeting your home expenses, which might help you save a little.
Photo by William Iven on Unsplash
- Make Extra Payments – If you have a surplus of income, why not pay some extra towards your home loan? That way, you will have less to pay, and this will become more obvious as the time nears for the final repayment. Most home loans allow you to make extra payments, and by doing this, the principal amount would become less. If you are unsure about the terms and conditions of your mortgage, talk to an independent mortgage broker, who might be able to help.
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- Make a Larger Deposit – If, for example, you paid 15% deposit instead of the required 10%, you would need to borrow less, and while that might be a struggle initially, it will pay dividends in the long run. This might not be possible, as for many homeowners, finding the 10% deposit proves to be a real challenge.
- Cut Down on Luxury Item Spending – If you try hard to budget and are able to save some extra money, you could put that extra money into repaying the mortgage, which will shorten the time you need to pay the loan. You could put off that exotic foreign holiday and use that money to repay the mortgage, and if you look hard enough, you will find ways that you can reduce your monthly outgoings, and that saving can go towards repaying the home loan.
- Use your Investment Money to Repay the Mortgage – If you have some savings, rather than investing in something, you could use that money to pay off more of your mortgage than is necessary.
As you can see, there are a number of ways that you can help yourself with your home loan repayments, and there’s nothing to lose by talking to an independent mortgage broker, who might be able to save you some money. The best solution is to check with an independent mortgage broker to see if he can find a better home loan than the one you have now.
Feature photo – Hollie Hutchinson