1.Don’t borrow the maximum amount
Based on multiple factors, most of the financial institutions determine the maximum amount of loan they will approve. However, it is wise not to go for maximum amounts to avoid stretch.
2.Build up a buffer
Go for a cash reserve in a mortgage offset account as a buffer. This would be helpful to repay the loan if any contingency occurs.
3.Take advantage of mortgage protection insurance
For better protection and cover, think about mortgage protection insurances. Many lenders offer insurance when you take out a home loan that covers the mortgage if you die, become disabled or your employment ends involuntarily.
4.Fix the interest rate
A good way to tackle interest rate is to fix it. However, it may restrict on making additional payments into a fixed rate loan.
For many, a combination of fixed and variable rates loans work best, as the variable rate portion allows to additional repayments of the debt.
5.Don’t add fuel to the fire
Many people often use credit cards to meet mortgage repayments. However using debt to service debt is very likely to compound the problem.
Remember, above advices are of general in nature and have not been tailored to your personal circumstances.
For more customized advice, set up a “Free Initial Consultation” with our expert advisers.
Our advisers can help you in budgeting, projecting cash flows at the same time determining the level of loan suitable for you with advice on insurance cover.