Three ways to get more from your mortgage
When you’re juggling the costs of raising a family while saving for the future, it can be hard to imagine ever actually owning your home outright.
But that’s just what Macquarie Bank’s offset home loan package could offer. A smarter way to home ownership – without sacrificing the holidays or fun weekends that make up a lifetime of family memories.
“Young families often have a single or reduced income, just when expenses are at their highest,” explains Katrina Anderson of Sydney-based mortgage broker Sage Loan Services.
“For some of our clients, reduced disposable income is a real challenge, it feels like they are only just keeping their head above water. Then fear creeps in, because they also want to set aside enough for the kids’ education – or having another baby.”
The tension between paying for today’s expenses without ignoring tomorrow’s needs is undeniably stressful. But if you have a home loan, there are three simple ways you can get your money to work a little harder for you.
1. Protect your family's lifestyle today
The important first step is to make sure you’re paying the most competitive rate possible. With interest rates at an all-time low, there is no excuse for not shopping around.
Plus, if you’ve built up some equity in your home loan over the past few years, your loan to value ratio may have improved. This is the amount of your loan, as a percentage against the value of your property, and as it goes down your chance of a better rate goes up.
This is just simple math. Check the loan calculator to see how much you could save over the term of your loan with a slightly lower rate – and you’ll see how much difference it could make to your family’s cash flow.