It is a fact that interest rates have increased over the last 12 months, as the Reserve Bank of Australia has increased the cash rate. We understand that for many of our home loan customers, rising interest rates are a new experience and after several increases, some may start to find it difficult to manage their loan.

If you are new to the world of home loans (or even if you’re not!), we’ve got some tips to help you stay on top of your repayments:

1. Schedule your payments to match your pay frequency

Sometimes finances can be made easier through simple logistics. If you get paid fortnightly, there’s no reason to do monthly repayments. If you get paid weekly, you could pay your loan back weekly, too. Setting up your repayments to go out of your account in time with your wage coming in will make sure you’ll never miss a payment and end up in arrears!

2. Know your minimum loan repayments

Could you tell us your minimum payment for your home loan right now off the top of your head? Probably not, not many of us can. But it’s always good to keep note of this somewhere, especially now that this minimum amount has likely changed and don’t forget to update your repayment if you’ve set up an electronic transfer!

3. Pretend your loan has a higher interest rate

Once you know your minimum repayment, you can make your payments a little bit higher, to pay it off faster. Plus, if you have free re-draw, you can always access that money if you need to.

4. Stick to a budget

You’re probably sick of hearing this one, but everyone says this for a reason – budgets might not be the most exciting thing in the world, but they’re one of the most effective ways to stay on top of your expenses. Plug in all your expenses, including your new home loan repayment that is timed with your paychecks, and you’ll be sure to make your payments on time.

5. Cut unnecessary costs in other areas 

Once you’ve sat down to do your budget, you might find there’s a few costs in there you’re not super committed to – like a subscription service you forgot to cancel, or a habit you didn’t realise you indulged in quite so much. Cutting down in other areas can take some stress off making your repayments, and hopefully give you some extra wriggle room in your budget!

7. Don’t just set and forget

So, you’ve set up your repayments and got your budget in tip-top shape. It might seem like it’s time to take off your boots, sit back and relax. But it’s good to check in with your finances, including your loan repayments, regularly, just to make sure everything’s still the same and your budget is still an accurate reflection of your finances.

    If you’ve noticed a change in your finances, or have any concerns regarding your home loan repayments, get in touch. We’re more than happy to help.

    Please note: this information is general in nature and does not take into account your personal circumstances or objectives. You should consider this before acting on any of the information contained.