How to Manage Your Mortgage

It is always essential to be on top of things when you're paying for your mortgage. This enables you to do a number of things, including: paying off your mortgage sooner, ensuring that you're not paying too much, and that your payments fit within your budget.

However, keeping track of all these is easier said than done. That is why we've written this quick guide for you. Here, we will show you a number of specific things you should look into that would help you reach your goals, whether it is pay off your mortgage sooner or reduce your payments. Let's get started with the following...

  1. Regularly review your products. Your needs and circumstances may have changed since the last time you got your mortgage. Thus, it is important that you regularly review your products if they still reflect your current situation. It could be that there are features in your product that you no longer need, which could only add to your payments. Typically, it pays to do your review every 3-5 years.
  2. Pay more/less. This one depends on what your goal is. If you want to pay off your loan sooner, then make use of all your chances to pay more. You could do this by sending out lump sum payments regularly (from your bonuses, tax returns, etc.), or by raising your rates by several percent.

    Meanwhile, you could also reduce your payments through strategies such as debt consolidation or having your loan term extended. Sure, you might be paying your debts longer, but at least they're easier to manage.

    The two are very different approaches to paying off your mortgage, so it's up to you which path you think would work for you best.

  3. Keep track of your budget. One way you can find out how much you can set aside for your mortgage is by keeping track of your budget. By doing so, you'll be able to see where your money goes and find out if you're spending some of it on unnecessary expenses. You'll be surprised by the amount of savings you'll make in the end, which you could then use to pay off your mortgage sooner.

Managing your mortgage doesn't have to be complicated. All you need to do is figure out the factors that will enable you to pay it off sooner or to make your payments more manageable.

It also helps to have the right home loan for your needs and budget. Here at Rate Detective, our qualified advisors are ready to help you find a loan that's right for you. They will also provide you with rate comparisons of Australia's top lenders, so you can finally meet your goal, be it to lengthen your term, or pay off your debt sooner.

Get your quotes now

What to find out more? Enquire now

Published on November 11-th, 2012 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
Enquire about Home Loans
Please enter the estimated value of the property

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.

Related Topics