Financial management

5 home loan hacks: How to beat the system

- August 7, 2015 2 MIN READ

Let’s be real: the old way of getting a home loan sucks. It’s the biggest financial transaction of your life, but feels like a losing a battle against banks and brokers. So how can you tell if you’re winning, and paying a fair rate?

By (finally!) giving everyone access to the same information that banks and brokers use, uno’s platform assesses your individual situation against 1000s of criteria to create a short list of mortgage options best suited to you across 20+ leading lenders.

In this video, uno speaks with an industry insider to get the little-known facts that could help you save thousands of dollars on your home loan repayments.

So, exactly how much will you pay?

Uno research shows 52% of Australians aren’t confident they’ve found the best home loan deal. Find out exactly how much your loan repayments would and compare rates using this handy calculator.

No more playing favourites.

Around two thirds of uno loans go to non-major lenders, compared to the Australian industry average of approximately three quarters going to the big four banks. Unlike brokers, our home loan experts don’t receive an individual commission, so you know they’re looking after your interests their hip pocket.

5 hacks to pay less on your home loan

Hack #1: Pay more often.

Make weekly or fortnightly repayments if you can, rather than monthly. Going from a monthly to a weekly repayment schedule will help you pay off the loan faster and save on interest as you’ll make four extra repayments a year.

Hack #2: Round up your repayments.

If your weekly repayment is $550, why not round the amount up to $600? The extra $50 per week could save you around $55,000 over the life of the loan. (On a fixed rate, you might be charged fees for making extra repayments).

Hack #3: Use an offset account.

You can set up an offset account to receive your work income and any money you receive and your lender will offset the balance in your account against the balance of your home loan.

Hack #4: Tip in any extras.

If a pay rise is on the cards, a bonus, or even birthday cash from a relative, consider putting the money toward your mortgage – rather than spend it on something you probably don’t need. You’ll reduce your principal and interest significantly.

Hack #5: Hold steady.

Pay the same amount on your mortgage – even if interest rates drop. When interest rates drop and you’re on a variable rate, it could be tempting to pay less on your home loan repayments. But it’s better to keep paying the same amount and pay off your debt faster.

What to do next

  • Calculate what your repayments would be
  • See how you can benefit from refinancing your loan
  • Speak to a uno adviser.

More questions?

From “What can I do if I’m self employed?” to “How can I reduce my interest?”, uno has also answered all your burning questions about home loans. And some you may have been afraid to ask. Read more here and try the calculator.

 

This information is general in nature and you should always seek professional advice when making financial decisions.