Finding managing your loan stressful? Learn how to minimise the interest you pay, reduce your loan term and save money!
First and foremost, the best way to save money on your loan is to follow a sensible budget. Our handy online budget planner calculator can assist with planning your finances for the year ahead.
Make payments as regularly as possible – weekly or fortnightly if you can and pay more than the minimum required. By paying just a little bit extra each week, fortnight or month, you may be able to save thousands of dollars and cut years off your home loan.
For example, by paying as little as an extra $25 per week on a $200,000 loan over 25 years at 5.50% p.a. you can save up to $30,089 in interest and cut down your loan by 3 years and 10 months!
Use our handy online extra repayments calculator for an indication of how much you could save.
By paying a lump sum off your home loan, you can reduce the amount you owe and the term of your home loan. With a Bank of us home loan, extra lump sum payments can be made into your loan at any time, regardless of whether you are on a fixed or variable rate (terms and conditions apply).
Use our handy online lump sum repayment calculator for an indication of how much you could save.
If you have a Bank of us home loan and you are ahead on your home loan repayments and find you need some extra cash (e.g. for home improvements), you may be able to take advantage of our redraw feature and withdraw from the amount by which you are ahead on your loan.
Mortgage offset accounts are just like a normal savings account with features like internet, mobile and telephone banking, except there is one important difference: every dollar is 100% off-set against the balance of your home loan. This means you will pay less interest but still have access to your money.
It works like this: If you owe $200,000 on your home loan, but also have $5,000 in your mortgage offset account, you'll effectively be paying interest on an outstanding amount of $195,000. The more you save, the less you pay. This may be tax effective too – depending on your individual circumstances.
To be eligible for a Bank of us off-set account you must be a party (individually or jointly) to a qualifying Bank of us home loan.
Ensure your home loan has an everyday transaction account, which is free of fees and charges.
At Bank of us, our Go to account delivers the very best in fee-free banking with no monthly fee.
Sometimes, despite the very best planning, things happen which make it difficult to meet your financial commitments. Job loss, marital breakup and illness are but a few unfortunate events which not only cause emotional distress but can bring about financial hardship as well.
If you find yourself in this situation, you are not alone and there may be some options which provide temporary or longer term relief.
It is really important you don't ignore any financial difficulty you are experiencing. Regular loan payments are contractually required and if you miss one or more your loan will be in arrears and this may end up affecting your credit rating.
The key is to talk to us early.
We understand that financial hardship can happen to anyone.
If you need more guidance, there are counselling services designed specifically to help with financial hardship:
Anglicare Financial Counselling Service: Freecall 1800 007 007
Hobart Community Legal Service (Consumer Credit Solicitor): Freecall 1800 232 500
Things you need to know:
Please note this information does not take into account your personal circumstances and is general advice only. Before opening any Bank of us account, please read the Product Disclosure Statement (PDS) and our Schedule of Fees and Charges and decide if the account is right for you. Interest rates are subject to change without notice and should be verified with your local Bank of us Branch.
*To be eligible you must have a Bank of us Home Loan (either individually or jointly) which when commencing is $50,000 or more and have your salary directly credited into this account on a regular weekly, fortnightly or monthly basis.
#To be eligible you'll need to have an existing Bank of us Residential Investment Loan and have your rental income credited into the account. Your Residential Investment Loan must be a minimum of $50,000 at commencement. There is a limit of one Resi Invest Advantage account per Residential Investment Loan.