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Fluctuating income

Pay Off Your Mortgage Sooner

A mortgage is generally one of the largest and most daunting expenses you may face in your lifetime, however, there are a few little things you can do to decrease the length of your mortgage term and get out of debt faster.

Payments

If you want to pay a little more without increasing your monthly payment; there is a commonly used strategy. You could continue paying $2,000 a month for 12 months, therefore paying off $24,000 per year. Or, you could halve your monthly payment and pay
$1,000 a fortnight over 26 weeks. This will increase your yearly payment to $26,000. You will have paid an extra four weeks and an additional $2,000 without noticing.

Get a health check

If you’ve been sitting on the same mortgage repayment plan for a while, it might be time to take another look. Interest rates may have improved, there may be a more suitable payment plan or you might need to consolidate debts again. A variable interest rate loan will give you more flexibility, however the interest rate can move up or down according to the market. For those who prefer the security of locking in an interest rate for a set period, a fixed rate loan would be beneficial. There is also the option of splitting your loan across these two interest rate options which will lower your interest if the market is in your favour, and decrease the impact the market has on your loan if interest rates creep up. You can contact the experts at Mortgage Express to make sure your payment plan suits you and your needs.

Sacrifice

Consider if a purchase is a need or simply a want. If it’s the latter, think about  the difference that $50 a week could make to your mortgage. It could be as simple as going out for dinner once a week instead of twice. Putting away that extra $50 each week could pay $2,600 off your mortgage each year.

Lump sum payments

Check if your loan allows you to make additional payments. Making the occasional lump sum payment after tax time or receiving a bonus at work can lower your interest and reduce the length of your mortgage term.

Offset account

Think about setting up an offset account to lower the amount of interest you are paying. If you have a loan of $200,000 with $50,000 in your offset account, you will only pay interest on $150,000. This option can take years off your mortgage.

Don’t lower repayments

Choose not to lower your repayment amounts if you are given the option. You will pay off your mortgage and be out of debt a lot sooner.

If you need assistance with first home mortgage finance, refinancing, investment finance or general information, the team at Mortgage Express have the answers.


A buyers, sellers or balanced market.

Which Market Are You In – Sellers, Buyers or Balanced?

The average time it takes to sell a home indicates the market climate. It is very important a seller understands which market they are in and the average time it is takes to sell a property. Ask your sales consultant about the current market in your location.

There are three types of market climates:

A seller’s market

There are lots of buyers and very few homes for sale. High demand for property is in the seller’s favour as properties spend less time on the market and sale prices rise due to scarcity.
To all sellers this is the “golden time” when they can be firm on their price and the conditions of the sale. If Buyer number 1 is not prepared to pay the price, Buyer number 2 and 3 will.

A buyer’s market

Often there are literally hundreds of homes for sale and very few buyers. High demand for buyers is in the buyer’s favour as properties stay on the market much longer and sale prices reduce to compete for buyers. Here the buyers have a field day as they know they can bargain hard and set the conditions of the sale. Should Seller number 1 not accept his offer, then seller number 2 or 3 down the road will be happy to accept.

A balanced market

Numbers of buyers and properties for sale are about equal. Neither buyer nor seller has an advantage as properties are not languishing on the market or being snaffled up.

What does all this mean if you are in the market for a residence for yourself?

If you are consecutively selling your property to buy another for yourself, it doesn’t matter in which market you find yourself. You either buy and sell ‘high’ in the ‘sellers market’ or low in the ‘buyers market’. For you buying or selling matters only to move around to suit your individual living needs. The property market should not concern you and all the jargon about Buyers – or Sellers market should be forgotten. Just find the property you love.