 Simple steps to get the best mortgage
Managing your mortgage can be easy as long as you take the necessary steps, according to Australian Mortgage Options managing director Robert Projeski.
Checking the features of your loan is step one, says Mr Projeski and comparing rates is a must.
"Celebrate getting your loan by all means, but simple steps can remove the need to commiserate later on," Mr Projeski said.
Top of the list is checking to see that you have the facilities you need, such as redraw, offset account and flexibility in repayments.
Refinancing costs money in exit fees so if you are going to switch, make sure you will be saving overall.
Making extra repayments, paying fortnightly instead of monthly can save thousands in interest over the term of your loan. Mr Projeski said if a dual-income household earning $100,000 a year placed their wages on the account of their $300,000 30-year mortgage at the current standard variable rate of 5.91 per cent and withdraw $700 a week for expenses, the loan would be repaid in eight years, and the borrowers will save $264,000 (in interest).
Evaluating account keeping fees was also a priority according to Mr Projeski.
Join the discussion on Everything else about home loans
|