Save Thousands Off Your Home Loan – 3 Simple Tips To Save Money On Your Mortgage

There are many issues that home owners come across when paying off their mortgage.

Modern media is bombarding us with the latest tips, tricks and schemes often leaving us confused. The information presented to us either conflict with one another or doesn’t work in practice. People don’t know where to start, or try bad advice and give up.

Another issue is people tend to live above their means and use debt to fund their lifestyle. They are spending more money than what they are earning. It is common for people to use their credit card to buy furniture or a new car. They should instead only use loans to fund investments and a home.

Unfortunately this lifestyle doesn’t help save money on your mortgage and needs to change.

What can people start doing now to save money on their mortgage?

  1. Make Extra Repayments. By paying a little extra off your home loan each month you can save massive amounts on your loan. For example, imagine you have a $500,000 home loan at a 7% interest rate. If you pay an extra $100 a month on your mortgage you will save 2.7 years off your loan, and over $75,100. Small payments now will mean big savings in the future.
  2. Refinance Your Loan. By refinancing your loan to a lower interest rate you can save thousands on your home load. Using the same example as above, imagine you changed to an interest rate of 6.9% on your $500,000 home loan. You still continue to make the old repayments that you made when it was at 7% and, as a result, you save over $38,800. Even 0.1% off your interest rate can make a big difference towards saving money on your mortgage.
  3. Set Up An Offset Account. An offset account is a normal cheque account that is linked to your loan. If you had a $100,000 loan and had $10,000 in offset, then you will only be charged for the $90,000 instead of the full $100,000. Again, if we have an offset account with our $500,000 home loan at 7% interest rate, and had $3000 in an offset account, we could save $7200 over the term of the loan.

    *Please note this may not be available in all countries.

By applying these 3 simple tips to save money on your mortgage you can be sure to save thousands of dollars and cut years off your home loan.

Finding a Home Loan on the Internet

Are you looking for a home loan on the internet? You will discover the information you need, to be able to get a home loan online. Discover the information you need, to be able to source the best!

The first thing to remember, is that you have many options, and you can discover the best options, when you know where to look, and what to look for! So, the where is simple. The internet has search engines, which are a great way to punch in your keyword, and discover the information you need to be able to find the best.

Another option is to look through web sites that deal with finance. Often you can discover some great sources to get financing from. I have found some great web sites that allow you to get a loan, is those that provide reviews of the loans. These are generally from people who actually have taken out loans from these places.

Another idea is to go through and select the best options through another route, and that is to look at comparison web sites, that have many options. You can discover the best through these methods, so invest the time, and find the best.

There are many options and when you consider that some of these places actually allow you to apply online, you can rest assured that you can get a loan supper fast through these lenders.

Make sure to research, and you can discover the information you need to be able to source the best!

Home Loan Requirements In South Africa

Buying a house is more than just buying a cement building with rooms and a bathroom. Your house is a place where you live, rest, play and build memories, so more than just a building it is your home. When one is on the market to buy your home you have to take many things into consideration, such as how many rooms you require, the area in which you would like to live, where it be a free-standing house or an apartment etc. Then besides the considerations of the actual physical property there are also financial considerations to make.

When searching for that dream home, you need to know what you can afford to buy, and whether you will be able to commit to the repayment of your home loan. Buying a home is a costly expense and very few people would have the lump sum amount on hand to buy the house cash, so we have to take out a home loan from a financial institution. This home loan will then be paid back over a number of years with the addition of interest. Your monthly repayments will depend on a host of factors such as interest rates, taxes, and the loan term just to name a few.

When taking out a home loan, there is a process that the bank goes through to see if you financially eligible for a home loan, whether you would be able to pay back the money you had borrowed. Each bank has its list of requirements which might differ slightly, although here is a list of documentation that you require for your initial application.

The following documentation is required by financial institutions to process your loan application.

Personal details:

• Certified copy of I.D
• Copy of last pay slip
• 3 months bank statements
• Your income tax number
• Proof of physical address
• Offer to purchase (signed by all parties)

Additional information for Business Owners, Practising Professional or Partnerships:

• Two years financial statement signed by client
• Six months business and personal bank statements
• Legal docs- CK1 for Closing Corporations and Founding Statements for PTY LTD

Additional documentation for Companies or Incorporated Companies:

• Latest audited financial statements
• Latest certified financial statements
• Bank statements for past three months

This is a list of the documentation you can expect the bank to ask from you when applying for your home loan. Although keep in mind that many banks now use automated credit scoring systems, sometimes these programs could have trouble reading your credit history in which case someone will call you asking you to explain something about your credit history, although this is only for clarification purposes and not a cause for concern. Getting pre-approval from your bank before you go house hunting is a great way for you to be more confident in knowing what you can afford whilst shopping around for your piece of property, or better yet said your new home.