We are getting ourselves super organised and in control of our financial future by looking at ways we can save money and achieve our financial goals efficiently and effectively, whilst also maintaining a sense of balance with our other life goals. Going through this process has been incredibly exciting and motivating as we work together as a team and start to see what dreams we can achieve.
One of our biggest goals is to pay off our new home loan as quickly as possible, which will in turn help us save money to free up our cash flow for more investing and help give us more freedom, more time and more holidays and adventures. (Now you can see why I am so excited).
And the best way to pay off your home loan quickly is to make extra lump sum repayments when you can, try and increase your regular repayments and most importantly, ensure that your home loan is on the most competitive interest rate possible. This is because the lower the interest rate is on your home loan, the bigger the dent you can make in reducing the principal loan amount rather than simply paying the interest and treading water. If you can do even just one of those 3 things, the amount of time and money you save will be incredible (if you want to see for yourself, use this calculator to see exactly how much time and money you could save).
Now if you are already doing the best you can with your home loan, making extra lump sum repayments and have already set your repayments at the highest you can afford within your budget, the next step you must follow is to check your interest rate. Trust me, you won’t regret this.
You can find your interest rate on your internet banking, and it is normally under your transaction statements. Once you have found it, go and compare it to see if it is competitive. I recommend comparing it against truly competitive rates such as the new Athena Owner Occupier, P&I variable rate of 2.84% p.a. (2.80% p.a. comparison rate) so you can really see what interest rate you should be paying.
If your home loan rate isn’t close to this rate, don’t accept it, start shopping around. Now is the time for you to join me and also get super organised, start talking to other loan providers and start achieving your dreams sooner, because settling for your current interest rates that are higher simply isn’t good enough and you deserve better.
We are in a record low interest rate environment, with the RBA progressively cutting interest rates to help stimulate the economy. To stimulate the economy, you need to benefit from this cut, (not your loan provider) which means ensuring that your loan provider is properly passing those cuts on to you. In the most recent interest rate cut in October, only four loan providers passed this on in full. One of which was Athena Home Loans, who’ve passed the full rate cut to all of their customers to provide immediate savings and benefits.
This is your time to benefit from low interest rates (lowest in 50 years to be precise!), so get super organised with your loans, your financial goals and save yourself a fortune in both money and time. Best of all take advantage of this opportunity to achieve your dreams sooner.