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Rae's tips for saving money on your home loan

"I'm actually really excited about the prospect of being able to buy a new house and reorganise our mortgage. Last time we had a fixed interest rate - but since then the recession hit and the interest rates went low, so we never had an opportunity to capitalise on that.

"Here are a couple of tips I've picked up which may help you handle your repayments."

  • Pay half your monthly loan payment every fortnight (you'll make two extra payments a year) 
  • Increase payments whenever you can
  • Keep your payments the same if interest rates drop - you'll pay off more principle which will save interest costs and shave time off your loan 
  • Pay off a lump sum when possible (i.e. from a commission, bonus, inheritance or regular savings)
  • Reduce the term of your loan - this will reduce the overall interest costs of your home loan!

The TMS guide to managing your home loan

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