SA Home Loan Guides:
Interest Rates are increasing but there’s no need to be alarmed because you’e one step away from lowering your monthly expenses.
Mortgage and property experts agree that, although we’ve been hit by two rate increases already this year there is no need for homeowners to panic.
Home Loan debt has become more expensive and tougher to manage but starting today you can use your mortgage to put money back in your pocket every month.
1. Lower You Mortgage Interest Rate
One of the easiest ways to lower your monthly bond repayments is to get a better interest rate on your mortgage.
Often there is little difference in property prices in your neighborhood which means that your neighbour is likely to have a bond of similar size as you do, but because he is paying 2% below prime while you’re only get 1.5% below prime you could end up pay over R100 000 more for a property of similar value.
The better mortgage rate means you’ll have an extra one or two hundred rand left in your pocket every month.
2. Erase your credit card and personal loan debts Fast
Your home loan is your biggest financial tool and if used correctly it can save you thousands every year. Generally, the interest rates charged on home loans are far lower than on other forms of debt. By using your home loan to pay off your credit cards and personal loans you can dramatically lower your monthly expenses.