3 ways to help keep your mortgage off your mind

There’s no feeling quite like that pay day feeling. But after a second, reality (and life admin) catches up with you. You sit down to deal with the essentials… and watch as your disposable income disappears into your mortgage.

That's why we've put together some handy ways you can use your mortgage to your advantage and help keep it off your mind.

1. It’s all about give and take

You’ve probably heard the phrase ‘redraw facility’, but what does it actually mean? It’s bank jargon for permission to pay extra money off your mortgage - which reduces your home loan interest - and the option to take the money back out if you need it.

Say you make $5,000 worth of extra repayments. You could redraw that $5K for a spur of the moment holiday or an expense you didn’t see coming. See how to make the most of a redraw facility.

With some Bankwest home loans, you can even access your redraw facility for free through online banking – just keep in mind that redraw fees apply to other methods of redraw such as over the counter. 

2. Start losing interest

An offset account can help you to reduce the interest you pay on your home loan.

It works like a normal transaction account, but it’s linked to your home loan. Money that you have in there is ‘offset’ against the balance in your home loan account. Banks calculate the interest on your home loan daily, so your offset account balance can reduce that daily calculated interest.

3. Remember to rate your rate

When you make the same mortgage payment again and again for years, it’s easy to get complacent. These days, many homeowners don’t actually know what their interest rate is.

If you can’t remember your interest rate (or it’s changed during your loan term) you can check it by logging into online banking, or asking for an account position statement at your branch.

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Things you should know

The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. To the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accepts no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.