Yesterday, mortgage holders got another interest rate rise!
In today’s world of financial uncertainties, it’s easy to feel overwhelmed by the prospect of rising interest rates and the impact on your mortgage repayments.
But fear not, fellow homeowners!
There are ways to navigate these challenges and emerge victorious, debt-free, and smiling all the way to the bank (or rather, your very own mortgage-free home).
Round Up Your Mortgage Payments: Unleash the Power of Small Change
Every dollar counts, especially when it comes to chipping away at your mortgage debt. Consider rounding up your monthly payments to the nearest hundred. For instance, instead of paying $1910, make it $2000. Those extra $90 might seem insignificant, but over time, they’ll add up to a substantial chunk off your principal balance.
Fortnightly Repayments: Twice the Repayments, Twice the Speed
Did you know that there are actually 26 fortnights in a year, not just 12 months? That means by switching to fortnightly repayments, you’re essentially making an extra two payments each year, effectively doubling your debt repayment speed. Think of it as giving your mortgage a double dose of debt-fighting power.
Offset Account: The Secret Weapon for Savvy Homeowners
An offset account is like a magic potion for your mortgage. By linking your offset account to your mortgage, you can reduce the amount of interest you’re paying. Here’s the trick: park your spare cash in the offset account, and voila! The balance in that account is deducted from your mortgage balance, meaning less interest to pay.
An Extra Tip: Credit Card Bill Payments with a Twist
Want to supercharge your offset account savings? Pay your bills with a credit card and let the funds rest in your offset account until the end of the month. This way, you’re earning interest on your money while paying off your credit card balance. It’s a win-win situation that’ll have your mortgage balance trembling in fear.
If you are concerned about the pressure rising interest rates are having on your ability to meet your
loan repayments contact our experienced lending Team at 0355612643.
Have a great day!
Read more of our daily blogs for valuable insights and stay up-to-date with the latest industry news – click here to access the full article on our blog page.
General advice disclaimer
The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure
Statement before making any decision relating to a financial product. Only lending advice provided by Ceebeks Financial Solutions is associated with Outsource Financial Ltd Credit Representative 396061. Chris Beks is a director of Ceebeks Financial Solutions and a Credit Representative (credit representative no. 396061) of Outsource Financial Ltd ABN 42 131 090 705; Licence Number 384324 an independently owned and operated Aggregator, and is authorised to provide personal credit advice. For more information, you can read our Credit Guide, or contact us for more information on our available services.