3 Tips for Saving While Paying off a Mortgage

3 Tips for Saving While Paying off a Mortgage

Paying off a mortgage can be a lofty task indeed. With those weekly payments coming out of your account, you may have nothing left for other financial goals such as saving for a holiday or perhaps even making extra mortgage repayments.

To get you started, let’s have a quick look at three ways that you could free up some room in your finances while paying off a mortgage.

Cutting the Luxuries

MoneySmart data suggests that the average Australian spends $32 a week dining out and a further $20 on bakery products. This seems like a completely reasonable amount, yet the fact is it’s a luxury that could easily be sacrificed in the name of achieving your financial goals.

Doing this doesn’t mean you must subsist on two-minute-noodles and meal replacement formula. Instead, just have a close look at your expenditures and see where you can cut any unnecessary costs. The money that this saves you could go towards securing an investment home loan and starting your property empire.

Rent a Room Out

Generate extra income and gain a new housemate to hang out with, all in one fell swoop. Not only will you be slightly wealthier and gain a new companion, but you may also be able to claim part (or all) of your interest payments on your loan back as tax deductions, according to the Australian Taxation Office.

This extra cash could go a long way towards saving for that second property, or even a couple weeks on a tropical beach in Bali.

Refinance

With interest rates being so low at the moment, and the big banks slowly starting to pass on interest rate rises, now is the time to act.

If you secured your mortgage a year or more ago, refinancing could potentially help to lock in a lower rate and save you money – that could be spent on more important things. A review is free, independent, and you might be very surprised at not only lower rates but also strategies regarding your debt that you may not have heard before.

Let us help you save some money!

To book in a loan review consultation, give our office a call on (02) 8814 5275 to lock in an appointment time or simply complete an enquiry form.