Owning a 30-year mortgage can be intimidating, especially as none knows what will happen over the coming years. It is possible to experience a fluctuation in interest rates, which in turn will affect your home loan repayments. It is important to think of strategies that you can use to ensure that you are ready for any future shocks. Here are some tactics that you can employ to make your home loan ready for the future.

Re-think your Spending

Examine how you spend your income and how you can do it better. Using your money wisely will definitely help you save up a buffer for possible future shocks. You can use this on your mortgage repayment to pay down your debt. Check if you are able to free up some expenses from the basics, your grocery or electricity consumption. You may also consider minimising eating out with your family and friends and spend more of your time at the hearth of your home.

Debt Consolidation

You may be thinking, why would I want to increase my home mortgage?

Consolidating expensive credit card debt or personal loans into your home lending will greatly reduce the total overall interest you’re paying monthly.

Repaying your debts at a lower rate should enable you to decrease your debts faster as it could allow you to increasing your monthly overall repayments which will chew through your debt balance.

Take advantage of windfalls

Sometimes you may experience receiving unexpected money from work bonuses, tax refunds, or inheritances. You can use this “ extra gravy” effectively by paying off your mortgage as a way of protecting yourself for the future.

Create a Comfortable Cushion

By paying off more than the minimum repayments to your loan, this will give you a cushion that you can utilise when needed. The advantage of doing this is having your mortgage paid off quicker than you expected, saving from the interest and being able to build equity to your home. Making weekly or fortnightly repayments to your mortgage will not only enable you to save a nest egg but it will also be not as heavy in the pocket as making the repayments monthly.

Get a Fixed Interest Rate

Having a fixed interest rate on a few years or the entirety of your loan term keeps you protected from future increase of interest rates. You will have the opportunity to plan your budget for your repayments and other expenses. However, it is important to consider as well that having fixed rates for your mortgage hinders you from making additional repayments. It is advisable to seek advice from experts to determine which strategies works best for you.

It is crucial to make sure that you are equipped to deal with the future. Hence, it is imperative to explore effective strategies and techniques to make sure that your home loan is covered for any future changes.

Ink Wealth can help you build your future. Talk to us and our expert professionals can help you get ready for the future…NOW.