Home loans can be a pretty dry topic, but there are lessons to be learned in the most interesting of places when it comes to staying on top of your commitments. With MLC reporting that Australian investors think now is the ideal time to pay off debt, let’s see what we can glean from a long time ago in a galaxy far, far away…
Avoid unnecessary expenses – and characters
When you take out a home loan, you’ll want to pay off what you owe as soon as possible in order to reduce the amount of interest you accrue overall. To do that, you need to stick to your repayments, and that is extremely difficult to do if you make unnecessary purchases.
Almost as difficult as it was to enjoy the Prequel Trilogy after Jar Jar Binks was introduced.
Unless you want to kick yourself later when you find out you’ve done a Gungan and ruined everything (about your repayment schedule), make sure you budget accordingly for your loan!
Always shoot first
Han Solo is a smuggler, so you can bet he knows a thing or two about outstanding debts. When Greedo came to collect, Han made sure to shoot first – though in your case, that translates to striking by making additional repayments before you need to.
With the typical owner-occupier now taking out an average home loan of about $370,000 according to Australian Bureau of Statistics figures, it’s more important than ever to pay off as much as you can early. That way, you aren’t paying off a huge amount of interest.
Even the best plans can have a flaw
The Australian Services and Investments commission found that a full 18 per cent of Australians did not have adequate protection against loss of income – meaning that any sudden medical emergency or car breakdown would be next to impossible to resolve.
The Rebels had a similar insurmountable problem with the Death Star defences, but like always there is a way around them – though yours takes the form of home loan refinancing instead of a rather foolishly-placed exhaust port. And, just like Skywalker and his womprats, all that consistency with loan repayments will put you in good stead with your lender.
In addition, refinancing gives you the chance to get a better interest rate – you don’t need the Force to predict that will have a good outcome for your loan overall!
Want to avoid the Dark Side of home loans? Make sure to speak to us and learn how to make the most of your home loan.