Outsmart Your Home Loan

Hey Homeowners! Ready to beat the banks at their own game and save big on your home loan? Craggle's got your back with some insider tips. Let's turn those home loan lemons into lemonade!

Switch to Fortnightly Payments:

By switching to fortnightly payments, you're not just splitting your monthly payment in half; you're actually making a sneaky extra payment each year. How? Well, there are 26 fortnights in a year, so you end up making the equivalent of 13 monthly payments instead of 12.

This clever little switch can reduce your overall loan term and save you a decent chunk of interest. It's like finding a shortcut on your daily commute – quicker, smarter, and gets you ahead of the game. And the best part? You're using your money more efficiently without feeling the pinch. That's what we call a win-win.

So, why stick to the old ways when you can outsmart the system? It’s not just about paying off your loan, it’s about doing it smarter and faster!

Get Smart with your Offset Account:

Alright, let's talk about moving your savings from an interest-bearing account to your mortgage offset account. Think of it as switching lanes on the financial freeway – you're moving from the slow lane to the express!

Here's why it's a brilliant move: In the usual savings account, sure, you earn interest, but it's often tiny, and guess what? It's taxable. Now, pivot to putting that cash in your mortgage offset account. It's like having a secret financial weapon. Every dollar in that offset account reduces the amount of interest you pay on your mortgage. And less interest means more money staying right where it belongs – in your pocket.

It's not just about saving; it's about saving smart. With your savings in the offset, they're working overtime, cutting down your home loan cost without being locked away. It's a clever strategy to make your money do the heavy lifting, giving you the ability to smash out that home loan faster and more efficiently, using every dollar to its maximum potential.

No Offset? Treat Your Home Loan Like a Savings Account!

Not every home loan has an offset account, but that does not mean there isn't a savvy way to save! Most Home Loans have a feature called 'Redraw', which lets you.. well.. redraw any surplus funds available in your home loan account. So, let's dive into why shifting your savings from an interest-bearing account to your mortgage account with a redraw facility is a slick move. Picture this: Instead of your savings lounging around in a regular account, earning a bit of interest (and let's not forget, that interest gets taxed), you pop them into your mortgage account. Here’s where the magic happens.

By doing this, you're essentially reducing your mortgage balance, which means you're paying less interest. It's like giving your home loan a turbo-boost towards the finish line. Plus, with a redraw facility, your extra cash is not locked away. Need it back for an emergency or a spontaneous splurge? You can redraw it, subject to your bank’s terms.

But, and this is key, not all redraw facilities are created equal. Some might have fees or conditions that could nibble away at your benefits. So, before you make the leap, do a bit of homework. Check out any fees or terms that come with your redraw option.

Flex Your Negotiation Muscles:

First off, banks are keen to keep you around. You're valuable to them, just like a star player is to a sports team. So, when you strut in with confidence and a bit of know-how, you're already on the front foot. Negotiating for a lower rate can lead to significant savings over the life of your loan. Less interest means more money stays in your pocket, giving you a fairer go at your financial goals.

Think about it – a lower rate could mean paying off your loan faster, having extra cash for that dream holiday, or just more breathing room in your budget. It’s all about playing the game with the cards you’ve got, and believe us, you’ve got some good ones.

Now, for the juicy part: How do you ace this negotiation? We've got your back. Check out Craggle’s Guide to Winning at Home Loan Negotiations for the insider tips and tricks. This guide is your playbook for talking to your bank. It's filled with strategies to help you make a strong case and get that rate down.

You don't need to jump banks or wrestle with refinancing to cut down your home loan costs. With these Craggle-approved strategies, you're all set to save some serious cash and outsmart your loan. Go on, give your bank a run for their money!

Disclaimer: Unless otherwise specified, the opinions expressed in this article are strictly for general informational and entertainment purposes only and should not be taken as financial advice or recommendation. Views are subject to change without notice at any time.