30 Apr 2021

Mortgage Minimisation Strategies: 3 Ways to Lower Monthly Repayments

Our innovative approach to assessing home loan applications makes the process more efficient. Regardless of the interest rate you receive, there are ways to lower it further. Mortgage minimisation strategies are one development our forward-thinking lending tools have rendered. The following are three ways you can lower your monthly repayment amount.

Offset Account

An offset account is linked to your mortgage. You place funds in the account. Those funds directly offset the principal still owed on the home loan. The offset amount lowers the amount payable toward the interest rate charge. If you deposit and keep $50,000 in the offset account, the principal is offset by $50,000.

An offset account does not lock the funds. They are still at your disposal. If you remove any amount, it impacts the offset account by the amount removed. To maximise this strategy, deposit 100% of your income.

Negatively Geared Property

Some households have two income earners. This increases your overall income and works against you if you’re trying to minimise your mortgage payment. Purchasing a negatively geared property and putting it in the name of the higher income earner is one way to decrease income.

This poses an opportunity. You can purchase a property in dire need of upgrades and use it in your favour. You can complete the upgrades at a comfortable pace.

Positively Geared Property

On the other hand, the household’s lower income earner can further decrease their income by purchasing a positively geared property in their name. Real estate is an essential sector because people need a place to live. It also poses opportunities for improving a financial situation.

Mortgage Minimisation Strategies Conclusion

Once you procure a home loan, your job is to ensure that it is paid back in full and on time. There are ways to lower your monthly repayments including mortgage minimisation strategies. By employing these methods, you lower the interest payment. To find out the strategy that works best for your financial circumstances, contact our Mortgage House lending experts. We offer online home loan calculators with no strings attached, too.

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