How to manage your money if you have a mortgage

Property investors and home owners have been enjoying the lowest interest rate for a long time now. Regardless of the interest rate, you should just take a long-term perspective on your loan to save money.

You may want to change your repayments from monthly to fortnightly and make 13 monthly repayments instead of 12 in a year. This means you would pay one extra repayment and reduce the interest payable and the term of your loan.

You may also want to maintain this level of repayment even if interest rates had gone down. This will significantly cut your home loan debt each year and slash the term of your loan. You can save money and build an extra cash flow buffer. Put the extra repayments into an offset account so you can redraw without having to ask the bank.

You are increasing your equity by paying more and reducing your debt. You can still grow your portfolio's equity even if values are stagnating. Seek the help of a specialist to structure your finance for your succeeding purchases as well.

The specialist should be able to get the best interest rate and most flexible terms. Don't get into bad, non-deductible debt. You may want to convert a portion of your debt to a fixed interest loan to secure your cash flow.

PS.

Finance is important in property investment as this allows you to grow your portfolio. You should be wise with your finance strategies. For more information about property investment in Australia, contact a Specialist to discuss your particular circumstances.

For more tips and advice from other industry experts, visit www.chan-naylor.com.au

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