1. Follow a budget
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.
2. Get the most out of your repayments
By making a few minor changes to the way you repay your loan you can reduce the amount of interest you pay and reduce the length of your loan.
Make your 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!
You can work out how much you might save by using our handy online Extra Repayments Calculator.
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 B&E 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 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. Please note a redraw fee does apply.
3. Link an offset account to your loan
Mortgage offset accounts are just like a normal savings account with features like internet, and mobile 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.
Note that to be eligible for a B&E off-set account you must be a party (individually or jointly) to a qualifying B&E home loan.
4. Fee-free everyday banking
Ensure your home loan has an everyday transaction account, which is free of fees and charges.
At B&E, our Home Advantage account is exclusive to home loan customers* and delivers the very best in fee-free banking with no monthly fee. If you are a Residential Investment Loan customer, we offer the Resi Invest Advantage account# that allows you to manage your investment with ease while keeping fees to a minimum.
Are you struggling with your repayments?
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. The key is to talk to us early.
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.
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 B&E 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 B&E Branch.
*To be eligible you must have a B&E 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 B&E 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.