How to Get on Top of Your Mortgage in 2018

If left unattended, mortgage rates can consume thousands of dollars more than necessary, leaving Kiwis with home loans in less than ideal situations. By re-evaluating payment plans using a tool like Sorted, setting yourself a strict monthly budget, and visiting online banking sites to check available interest rates, you could find yourself not only getting on top of your payments, but paying much less than you have been in the past.

Two common ways to become crushed by a mortgage is by being late on repayments, and inadequate structuring. “One of the best ways to get ahead financially is to pay off your mortgage as soon as possible,” says financial adviser Liz Koh. Pay back more than the bank advises, and when possible, make small extra payments. If your salary has gone up since the day you first signed for your mortgage, consider increasing your monthly payments.

Many first-home buyers choose to fix their entire mortgage on one interest rate, simply because it seems like the easiest thing to do. However, by tailoring the structure of your mortgage to your own circumstances, you may be able to save a lot of money. Talk to your bank about how a fixed or floating interest rate can benefit your personal case.

glimp is a free comparison website that can help you compare mortgage rates as well as utilities such as broadband, power and gas. Use their mortgage comparison tool to find ways to save money and get on top of your mortgage. There’s no point paying anything other than the lowest mortgage rates, so re-evaluate, budget and research your way out of debt.

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