Mortgage holders urged to get ahead on repayments

Wednesday 02 February 2011

Article by Mozo

Aussie mortgage holders have been advised to get ahead on their repayments and shrink their home loans to help them achieve better "peace of mind".

Mortgage holders urged to get ahead on repayments

Anthony Keane of News Limited noted that getting ahead on repayments offers "a great buffer" should interest rates go up, as well as a "mini-insurance policy" if unexpected expenses crop up later on such as health problems.

Setting out a number of tips for borrowers looking to shrink their mortgage, Mr Keane suggested that people should look to compare home loans before using rival offers to get a better deal.

"Shop around for a better deal with other lenders," he said. "Then confront your bank and ask them to match it. You have nothing to lose by using this Jedi mind trick they only need to think that you're considering a switch."

Elsewhere, Mr Keane noted that where possible, borrowers could ask their bank or credit union to deduct extra repayments automatically every month, thereby helping to cut down on interest costs over the life of the loan.

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