With the cost of living rising and interest rates constantly in the news, many Australians are looking for ways to ease the pressure of their mortgage. The good news? There are a few simple, proactive steps you can take to help reduce the strain and potentially save thousands over the life of your loan.
At Summerland Bank, we know home loans aren’t one-size-fits-all, but some common tips might help you feel more in control of your repayments and long-term goals.
5 ways to make your home loan work harder for you:
1. Make extra repayments when you can
Even small, regular additional repayments can reduce the length of your loan and the amount of interest you’ll pay over time. Every little bit helps!
2. Review your home loan regularly
As your financial situation or the market changes, it’s worth checking that your current loan still suits your needs. A regular check-in could uncover better options or features you’re not using.
3. Use redraw and offset facilities
If your loan includes a redraw facility or offset account, using them effectively can help reduce interest and provide flexibility when you need it.
4. Match repayments to your pay cycle
Switching from monthly to fortnightly repayments can slightly reduce the interest you pay and help pay off your loan faster – simply by making the equivalent of one extra monthly repayment per year.
5. Consider refinancing
If your interest rate is no longer competitive, or your needs have changed, refinancing could make a big difference. A lower rate or updated loan features, like flexible repayments or eco options, can ease the financial load and give you more control.
Thinking about refinancing?
At Summerland Bank, we offer competitive Hot Rates and a range of flexible home loan options. For a limited time, you could also receive up to $3,000 Cashback when you refinance an eligible home loan with us, T&Cs apply.
Whether you’re looking to lower your repayments, pay off your loan faster, or simply find a loan that fits your lifestyle, we’re here to help.
Let’s chat
Ready to explore your options? Talk to our local team today.
These tips are general and have not considered your circumstances. Please consider your personal situation, goals and needs to decide if right for you.
