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| Do your sums early! |
Finances are always a pain the rear end, but before embarking on any house hunting mission it is vital to have it together. One area of particular importance is once you have the home loan, how does one actually manage it? Here are a few tips on how to reduce the home loan (or bond).
1. The bigger the deposit, the better (it reduces the capital and monthly interest paid)
2. Secure a lower interest rate (by making use of a bond originator)
3. Pay extra each month (VB!!!! Pay a little extra per month. Every little bit counts.)
4. Pay in unbudgeted extras (IF you have a little extra cash – pay it into the bond)
5. Beat the interest calculation (by making payments earlier rather than later I the month)
These simple steps if adopted can and will make a huge difference down the line. Hang onto them and have a less stress free 20 years while paying off the home loan on your dream home.
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