I have good news for you, Matt...

Depending on your situation, there are a few ways to reduce your monthly repayments to help free up some cash in your budget.

Let’s dive straight in to see what’s possible. 

👉 Get a better rate – Comparing your rate to make sure it is competitive with what’s being offered in the market (and that you’re not paying more than you need to) is a great place to start. Plus, some lenders still have cashback offers of up to $5k to help sweeten the deal for refinancers.

👉 Consolidate your debts – If you have other loans (think car loans, personal loans or credit cards), combining them with your home loan is another way to reduce your monthly expenses. Your monthly home loan repayments might increase a little, but you will typically pay less overall by consolidating them all into one loan.

👉 Reduce your loan balance – If you happen to have a little cash stashed under your mattress, putting it towards your home loan could help you out. By reducing your principal balance, you might be able to review your home loan with your lender (or broker) and reduce your repayments.

👉 Explore interest-only options – If you really need to free up some extra cash right now, switching your loan from “principal and interest” to “interest only” is another option. Your repayments will be lower now, but keep in mind you won’t be paying down your actual loan, which means once the interest-only period expires, your repayments will probably be higher.

👉 Extend your loan term – This is another short-term solution if you need a little wiggle room ASAP. By moving your loan term back a few years (e.g. from 26 to 30 years) you can spread out your loan over a longer period, and lower your monthly repayments The downside? You will end up paying more interest over the life of your loan.

If none of these options feel right and you need some relief, lenders also offer hardship options to help you get through tricky times.

I’ll let you in on an insider secret, Matt – your lender wants you to stay a homeowner, so it is in their best interests to help you out (and they have entire teams dedicated to doing just that). Good to know right?

There’s no cookie cutter solution when it comes to home loans, so we’d always suggest chatting with a home loan expert first to weigh up which option might be best for you.

Hopefully, you can maximise your home loan to find a little breathing room in your budget. You’re not alone, everyone’s feeling it!

Take care,

Lauren

Lauren Kiddell
Finspo Home Loan Expert