09 Mar 2022

Mortgage Minimisation Strategies: The Basics

Mortgage Minimisation Strategies

Every homeowner benefits from employment mortgage minimisation strategies. The strategies become available to homeowners promptly after purchasing their homes. Minimisation strategies help homeowners lower their overall mortgage costs. For example, those who borrow $500,000 at 3% over 30 years pay a total of almost $759,000. Thus, they accrue almost $259,000 in interest rate charges alone. 

Since the interest rate charges get spread out over 30 years, it’s not a noticeable hit. Nonetheless, it’s worth attempting to lower. 

Paying off the mortgage in weekly or fortnightly installments is one way to save. Every time a homeowner lowers their outstanding principal, they pay less in interest rate charges.

An offset account also helps lower the total interest rate. Link the account to the home loan. Then, make an initial deposit. Thereafter, make additional deposits monthly. Lenders encourage homeowners to credit 100% of the income to the account. It’s possible to save $100,000 over 30 years.  

Mortgage House is a non-bank lender. We specialise in various loans that complement conventional mortgages. Our team helps small business owners, first-time homebuyers, and owner-builders become homeowners even though they can’t provide a 20% deposit or full financial documentation. Alternatives exist. 

In addition, we offer several online tools to help homebuyers prepare for the mortgage application process. You can test different home loan rates.

Mortgage Minimisation Strategies Conclusion

Employing mortgage minimisation strategies is easier than homeowners might think. To find the best ones for your financial circumstances, speak with our loan specialists at Mortgage House. Contact our team today.

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