Save on your banking and pay off your home loan faster
For many getting your first home loan is a key milestone of a long journey of saving and sacrifice. And once you have one? Well… then attention turns to how to get rid of it!
There are many ways to save money. The problem is… most of those ways require you to sacrifice something you enjoy.
Give up that morning coffee. Cut the vacation short. Hold off on the new car.
And that’s fine. We probably should make some tweaks here and there to get something more in the future.
But what if, on top of that, there was something we could do now that would help us pay off our home loans faster without having to sacrifice anything more?
Save without sacrifice
Finspo conducted some research in early 2020 on a sample of Australians with home loans and that’s the median amount we worked out they could potentially save on their banking.
$4,500 is a lot of money and it can go a long way towards helping you pay off your home loan faster.
Consider the following example.
If you were to pay an extra $4,500 per year ($375 per monthly payment) on a new $400,000 home loan with an interest rate that stays at 3% p.a. you could pay off your loan nearly 8 years earlier and save almost $60,000.
Wow, it certainly makes a difference.
So, if you want to get started and save without sacrifice read on for Finspo’s top tips to save on your banking today to pay off your home loan sooner.
Tip 1: Avoid or reduce banking fees
Banking fees really do add up. In fact, Australian households are paying billions in bank fees to the banks each year. Yes, billions!
That’s an average of around $425 in bank fees per household.
The problem with banking fees is they can be hard to find. There are lots of them. And they can sound… well, kind of scary and official.
Tip 2: Avoid the loyalty tax and get a better rate
Loyal customers are probably paying lenders more than they need to, without realising it. That’s because some lenders give new customers a better interest rate than existing customers who have been quietly whittling away at their home loan for years.
Things you need to know: Finspo ABN 34 637 821 928 Australian Credit Licence 521120. Information is current as at 17th August 2020. The information is general in nature. To the extent that it contains advice, it is general advice only and has been prepared without taking into account your objectives, financial situation or needs. For that reason, you should consider the appropriateness of such information, your personal circumstances and, if necessary, seek professional advice. Before making a decision to acquire any of the products mentioned, you should read the Product Disclosure Statement (if available) and product terms. Conditions and fees may apply. Neither Finspo nor any of its directors or employees (or any of their associates) receive any remuneration or other benefits in respect of or attributable to any general advice. There are no associations or relationships between Finspo (or any of its directors or employees) and any issuers of any financial products that might influence the advice given by Finspo. Nothing in this document is intended to constitute credit assistance about any products referred to. Contact us at info@finspo.com.au.
