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Top 5 Ways to Save on Your Home Loan

Your home loan repayment is most likely the biggest outlay in your every day budget and it will continue to be for many years to come. Thankfully, there are ways to help you save and reduce the length of time you need to pay off your home loan.

1. Review Your Repayments

Make Additional Repayments

By putting in some extra money into your home loan, the interest you pay will be reduced. This could result in tens of thousands saved on interest repayments over the life of your loan. Make sure you check your home loan contract to see if there any limits on the amount of additional repayments you can make.

Make Principal & Interest Repayments

Structure your loan repayments to be Principal and Interest (not interest only). This will ensure you’re paying down the principal portion of your home loan right from the start and minimising the amount of interest you have to pay.

Pay Fortnightly, Not Monthly

Change your repayment frequency to fortnightly, there are more fortnights in a year compared to the number of months which means more opportunity for you to pay more off your home loan.

2. Use a Financial Consultant

Consider using a financial consultant, like 8 Collective. We will negotiate on your behalf to find you the best deal to suit your situation, we will look at your all of your requirements before comparing the lenders on our panel on rate, features and fees.

3. Opt For an Offset Account

Offset accounts are a transactional account linked to your home loan. The balance in the offset account is used to “offset” the principal amount of your home loan thus lowering the amount of interest charged each month. If you’re able to keep a substantial amount in your Offset, you could save thousands off your home loan.


You have a 100% Offset account attached to your home loan. Your home loan balance is $400,000 with $50,000 in your offset account. You will only be charged interest on $350,000 because 100% of the offset balance is used to offset your principal.

Make sure you check with your mortgage broker or lender whether there are any additional fees applicable for having an offset account attached to your home loan.

4. Package Your Home Loan with Other Services

Whilst you may not save interest off your home loan directly, your overall budget could benefit by packaging various services together with your home loan provider.

Discounted rates, insurance or credit cards could be on offer by opting for a Home Loan package.

At 8 Collective, not only can you opt for a Home Loan Package with one of our major lenders, we also offer a collective approach to your finances with experts in all areas from accounting advice to wealth creation and planning.

5. Keep on Top of Home Loan Reviews

By keeping your finger on the pulse when it comes to your home loan, you may find that you could qualify for a better rate with a different lender.

Speak to one of 8 Collective’s financial consultants today and we’d be happy to help you review your current financial needs.

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