Save money through Loans

Loans

Pay for your car in cash, up front. Let’s say you get a car loan for $15,000 at a rate of 6.80% over 10 years. You end up paying back $20,714.49, a full $5,714.49 in interest alone.

Forget about a broker, apply for your mortgage online.

Get a mortgage that tracks the base rate of interest. Loans 101 here; the lower your interest, the less you pay back.

Research the fees and penalties for your mortgage. Most lenders charge for setting up your mortgage, some more than others. Be on the lookout for mortgages that charge a fee if you want to move to a different lender.

Try and get a mortgage where the property survey is free, this will save you several hundred dollars.

Get a mortgage that calculates your repayments based on your daily amount owed. This means that if you paid in $1,000 extra on the first day of the month, your interest would be calculated on the new balance. Many mortgages calculate interest on a monthly basis, so watch out.

Some banks offer what is called a ‘one account’. Basically they will incorporate all your savings, credit card debt and loans into one. While you don’t earn any interest on your savings, the balance of your account is subtracted from the initial capital of your mortgage. So if you had a $150,000 mortgage and $25,000, you would only be charged interest on $125,000. Over the course of your mortgage term, this will save you many thousands of Dollars in interest and get you mortgage-free much faster.

Take out repayment protection. If you lose your job or simply can’t afford to make a payment, you’re in trouble. The lender hits you with a penalty and you’re worse off than ever before. One easy way to avoid this and save is by taking out a repayment protection plan. Yeah it’ll cost you per month, but it’s more than worth it in the long run.

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