Five simple steps can bring your new loan nearer to your heart
Congratulations! You’ve purchased your first home. That’s a major milestone in one’s life. It may also mean that you’ve had a lot of expenses, including all the costs of buying your home, and will be settling in to make your regular loan repayments.
The good news is that this doesn’t have to be a chore. These simple strategies can help you to hold onto that feel-good vibe from your home loan.
Give your loan top priority
Make it a priority to set aside cash for your loan repayments before spending on other items. We can all skip dining out but paying your loan is a must-do. With the loan repayment covered, you’re able to spend guilt-free or make additional repayments so you can pay off your home loan faster.
Make your home loan your only debt
As a first home owner it pays to avoid taking on fresh debt – especially in the early years. Over time your income is likely to rise, but for the moment be careful when considering new credit cards and other debts. With just one regular loan repayment, it’s a lot easier to keep control of your money.
Embrace your new home
Now that you’re a home owner don’t be shy about showing off the place to friends and family. Entertainment and leisure expenses can take a big bite out of your household budget, and a great way to save money is by entertaining at home. Think movie nights, dinner parties, summer barbeques – you’ll save a bundle and that makes it easier to meet loan repayments while sharing your home with the people who matter most to you.
Keep your loan healthy
Our lives don’t stand still for long either. That’s why it’s important to give your loan an annual health check. Rest assured, your Aussie broker will make this easy, staying in touch to help you decide if your loan is still the most suitable for your needs and changing life stages.
Don’t sweat it
Home loans are one type of debt that financial experts describe as ‘good’ debt. That’s because your home will rise in value over time while your loan balance steadily falls. So while your loan is a major commitment today, don’t stress about it. Chances are, in a few years you’ll look back at what you paid for your home and be delighted you purchased when you did.
Have you figured out another way to love your home loan? Tell us in the comments below.
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