Do you want to save money on your mortgage?

Realestate.com reported on 5 July 2024 that there is a strategy that you could potentially save a homeowner over a $100,000.

As at 1 July 2024 there are tax cuts being introduced by the Federal Government.

These tax cuts could increase your borrowing capacity by $10,000’s, which could see a surge in the market for first home buyers as this category of buyer is the most likely to benefit from the tax cuts.

But for homeowners, the income boost could have a more significant impact.

Realestate.com have calculate that those who do not spend the tax cuts and either put them into their mortgage or into their offset account will stand to save five times the amount over the life of their loan.

If you then continue the habit and continue to put your tax cuts into your mortgage every year then over the life of your loan you will save ten times the amount.  That could be months or years you could take off the life of your loan.

The article goes on to say that any extra money that you may get because of working overtime or any bonuses that you should look at diverting that to your mortgage as it will decrease the life of your loan.

That last piece of advice in the article was to regularly do a health check on your mortgage.  Speak with the mortgage broker to make sure that you are getting the best interest rate that you can.

This all adds up to paying your mortgage off sooner!