MANAGING YOUR MORTGAGE

Reception • Nov 22, 2021

TIPS FOR EFFECTIVELY MANAGING YOUR MORTGAGE

Managing your mortgage effectively is one of the best ways to help avoid mortgage stress. Below are our top tips:

1. TRY AND PAY MORE THAN THE MINIMUM

To understand why paying above the minimum repayments is so effective in managing your mortgage, it helps to recognise that at the beginning of the loan term payments are paying mostly interest.  There is very minimal reduction to the principal of the loan (amount borrowed). However, any additional amounts pay down the principal directly – reducing the overall life of the loan, and the total interest payable. Win, win!

2. HAVE ALL YOUR DIRECT DEBITS COME OUT ON THE SAME DAY

Multiple direct debits, with varying dates across the month can be difficult to track. Coordinating all your direct debits to come out of your account on the same day can help avoid your transaction being declined or account being overdrawn. So, check your scheduled transactions in your internet banking and adjust the dates, or, for externally managed payments, you can contact the creditor/supplier and request a change of direct debit date.

3. STAY INFORMED OF THE CURRENT FINANCIAL CLIMATE AND RATE CHANGES

Keeping up-to-date with what’s going on in the world of finance and real estate can help you make proactive decisions. You can look at rate information via the RBA, or join our mailing list for a monthly update.

4. CHECK YOUR MORTGAGE ACCOUNT FREQUENTLY AND MAKE SURE ALL ACTIVITY IS NORMAL

Like with any account, monitoring the transactions for anything out of the ordinary is an important part of managing your mortgage. Unfortunately, mistakes are sometimes made, so the sooner you pick them up and raise them with your financial institution, the better.

5. ENSURE THERE ARE NO OVERDRAWS

No one likes it when their account is overdrawn, or when transactions are declined. Stay ahead of your account and actively monitor it to ensure that your payments can be made on time, and without any overdraws.

6. DON’T LIVE OUT OF YOUR MORTGAGE ACCOUNT – HAVE A SEPARATE BANK ACCOUNT PURELY FOR YOUR HOME LOAN DIRECT DEBIT

One of the best ways you can ensure your mortgage payments are always available and paid on time is to dedicate a separate account for your mortgage amounts to wait until payment is made. This will ensure you have the funds available, and remove any temptation to touch them in the meantime.

A NOTE REGARDING MORTGAGE STRESS

If you are already experiencing mortgage stress and are not sure if the above tips will help you, why not come and have a chat? We’d love to look at your options with you to see how this could be addressed to make managing your mortgage easier moving forward. Contact us here or call 03 8657 8664 and let’s make time to connect.

The Power of Pre-Approval: Your Key to Home Buying Success

05 Oct, 2023
The Power of Pre-Approval: Your Key to Home Buying Success

Navigating the World of Mortgages: What borrowing capability do you have?

01 Aug, 2023
Navigating the World of Mortgages: What borrowing capability do you have? Deciding to buy a house is an exciting milestone, and we're here to accompany you through the intricate world of mortgages. With the changes to interest rates that have happened over the last twelve months, it's essential that we are prepared and approach borrowing with a healthy attitude, as your choices now will have long-lasting implications, so let's ensure you're well-prepared for this homeowner journey. What should I consider when considering my borrowing limits? First, let's figure out how much you can borrow without sacrificing your peace of mind and daily joys. The key here is to measure your income against your expenses, including the potential mortgage repayments. A general rule of thumb: try to keep your mortgage repayments to no more than 35% of your gross monthly income. When it comes to borrowing generally, the higher your deposit and the higher your income, the more they should be willing to lend. The good news is we have more flexibility as mortgage brokers than the big banks, so we can look at your circumstances closer. Now, let's discuss some essential factors to consider when figuring out your borrowing limits. How much debt can you handle? Think about your lifestyle and what you're willing to give up versus what's non-negotiable. Be realistic about your dream home. Start with something affordable and gradually work your way up as your earnings grow and your equity increases. Think about the future. Are you planning to start a family, change jobs, or experience significant life changes? Factor those possibilities into your calculations. Keep an eye on interest rates and consider how further rises might affect your ability to make repayments. Reminder; A reminder that when purchasing a property, you will also need to factor in further expenses, such as, pay stamp duty, pest & building inspections, conveyancer fees, application fees, council rates, possible strata or body corporate costs, and utility bills to factor in. In Summary We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation to help you whether you are purchasing your first home or refinancing. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/

Refinancing: What Are Your Options As A Homeowner?

By Bree Jones • 19 Jun, 2023
At Future Finance Group, we understand that financial hardship has become a pressing concern for many homeowners across the country, including Melbourne. We want to help you explore the benefits of refinancing your mortgage. By assessing the right time to refinance and understanding the steps involved, we can guide you to potentially save money, access improved loan terms, and secure a more favourable financial future. What are the Benefits of Refinancing? During these challenging times, refinancing your mortgage can bring meaningful advantages. Firstly, it may allow you to take advantage of lower interest rates, reducing your monthly mortgage payments and offering much-needed relief. Additionally, refinancing allows switching from a variable-rate to a fixed-rate mortgage, ensuring stability and protection against future rate increases. By consolidating high-interest debts, you can streamline your finances and gain more control over your monthly obligations. Also, refinancing can unlock equity in your home, providing funds for essential expenses or other financial goals. Assessing the Right Time to Refinance Working out when to refinance can be challenging, mainly because we do not know what the future will bring. We are here to look at your personalised options and work with you to ensure your financial security. We can consider many factors, such as your credit score, home equity, and employment stability, to give you informed options. Steps Involved in Refinancing and Potential Cost Savings : We are here from the beginning to the end and strive to simplify the refinancing process for you. We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation. Our ultimate goal is to help you secure better terms, rates, and long-term cost savings to ease the pressure on you and your family. In Summary In these challenging times, exploring refinancing options can provide much-needed relief and open up financial opportunities for you as a homeowner. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/
MORE POST
Share by: