Hinternoosa Rentals
Interest Rates – Get Smart and Save
Despite the nerves that can be easily triggered by interest rate fluctuations, there are ways to get smart, save, and get ahead.
Fixed vs. Variable – Should you fix or not? We will leave that decision to you, but here are some suggestions. Don’t overlook the each-way bet option by choosing a loan split between fixed and variable or fixed and interest only. This way, when variable rates rise, it will only affect a portion of your loan.
Fortnightly Payments – Interest is calculated on a mortgage daily, and when you pay fortnightly, you make one additional payment in a year, reducing your interest payable. You can also redraw against any advanced payments if you experience financial hardship.
Direct Salary Crediting – The minute you credit your mortgage account with your salary, you will save interest and speed up the time it takes to pay off the loan.
Regular Additional Payments – Increase your monthly payments to reduce your interest. You will save and get ahead if you top up your scheduled payment by just $25 per fortnight.
Use your Credit Card – Taking advantage of your credit card’s up to 55-day interest-free feature for your daily expenditures, such as petrol, food, entertainment, etc., is a clever way of reducing your mortgage if you are utilising direct salary crediting. Let the credit card balance grow until the day before the bill is due, then arrange a direct payment from your home loan to avoid any interest payable.