Mortgage Saving Tips to save money on the biggest purchase of your life
Almost everyone will be spending far more on their mortgage than anything else in their life, unless you’re one of those lucky fellows with a jet and a McLaren. Outside of the rich, the average homeowner will want to look for ways to save on a mortgage.
This is best done long before you’re prepared to take out a mortgage, because it takes years to establish yourself as a financially responsible individual. Trying to do that six months before you apply for a mortgage will rarely do much, so here’s a few generalised things that we suggest.
1. Start borrowing as soon as you’re able to. With credit cards, always pay off 100% of what you charge each month. On installment loans, never miss a payment, and make sure any extra payments are always applied to the end of the loan (the principle) rather than added on as extra payments.
2. Build relationships with lenders. Don’t always shop around for the best car loan or credit card rate you can find. Instead, look for the best mortgage lender, and then get your auto loan and credit cards through them. Building the relationship will pay off when it comes time to get your mortgage, as they’ll already know who you are.
3. Don’t buy more home than you need. Every extra meter of home you buy costs at least twice as much as you agreed to pay once the loan and interest have been factored in. Plus, you’ll have more home to decorate, furnish, and maintain. If you are planning to have children, remember, they start out small. Most kids don’t need their own room, and would prefer to sleep with mum and dad for the first few years anyway. So, save your money now, and buy more home later, or build on to your existing home when you’re ready. Either way, you’ll save.
Do you have more mortgage tips? Do you agree or disagree? Let us know below or start your own mortgage thread today!
