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5 ways to save if you’re a homeowner

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Now more than ever, households should be doing everything they can to save money and eliminate unnecessary costs.

If you have a mortgage, there are a number of things you can be doing right now to improve your immediate cash flow and long-term position.

Here are five ways to save if you’re a homeowner...

1. Negotiate

Talk to your lender or home loan specialist about your current interest rate and find out if there’s a better deal available. The recent ACCC report plainly showed that banks charge higher interest rates to customers who have been on the books for 12 months or more.

2. Consolidate

If you have personal loans, car loans or credit cards - it’s likely you are being charged an interest rate on that debt that is much higher than your mortgage interest rate. Talk to an expert about consolidating your debt and rolling your high interest rate debt into your mortgage.

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3. Refinance

Refinancing doesn’t always mean switching lenders. It may be as simple as switching to a more appropriate loan package with your existing lender but that charges you a lower rate or less in fees.

In April 2020, the median interest rate the banks were offering Lendi customers was 2.72%*. If your rate is higher than that but your loan to value ratio is 80% or less - it’s time to review your options and find out if there's a better product in the market that’s suited to your needs.

4. Offset

Any additional money you can put against your mortgage will reduce interest paid over time. If you have savings, consider putting these in an offset account rather than a savings account because they will sit against the principal and effectively mean you are paying interest on a smaller debt.

5. Make extra repayments

If your cash flow is healthy, you may be able to make extra repayments into your redraw or offset account. This will help you save money over the long term, with the potential to reduce the length of your loan. If you want the flexibility to access your extra repayments quickly, an offset account is a better option than a redraw account.

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*Median refinance rate offered to owner occupiers with principal and interest loans, LVR below 80%.

The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.

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Tags: rba cash rate, reserve bank, interest rate, refinance, new purchase

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates
Home loan repayment saver tool

Home loan repayment saver tool

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Important legal stuff

Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 35 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 35% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. Lendi's board is majority independent and non-executive.
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
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