The New Year is the perfect time to come up with some resolutions and financial goals for the year ahead. For homeowners, this is especially important. After all, owning a home is one of the biggest investments you can make. If you’re not sure where to start, we’ve come up with five achievable financial resolutions you can set in 2023 to improve your home loan and financial situation.
Review Your Mortgage
A great place to start our New Year financial refresh is reviewing your existing home loan to make sure you’re not paying more than you need to and that it is still competitive and suitable. Start by comparing your home loan interest rates to the rates your lender is offering new customers. If your rate is too high, you can try to negotiate it down. There are often refinancing options available that could save you money. Take advantage of them.
Set A Budget
It’s easy to get caught up in the day-to-day expenses associated with owning a home, but it’s important to set aside some money each month for savings. This means creating a budget and sticking to it. Set aside money for savings and make sure you’re able to pay your mortgage and other bills on time.
Check Your Insurance Policies
It’s important to make sure your home is properly insured. Home and contents insurance protects you when the unexpected happens – say, a fire in your home or your valuables being stolen. With an effective home and contents insurance policy, you should be covered to rebuild, repair and replace your insured belongings. Check what is and isn’t covered by your current policy to make sure any newly acquired valuables are included and you’re still getting the best rates.
Make Extra Repayments
One way to reduce the total amount of interest you’ll pay over the life of your loan is by paying off the balance faster. You can do this by making extra repayments towards your mortgage. So, the next time you get a tax refund, a work bonus or another unexpected lump sum of money, consider putting it towards your home loan. Not only will this put you on track to repaying your loan sooner, but you’ll also save on interest.
Get Your Debt In Check
2023 is the year to make adjustments to your budget and get serious about paying off your debts. Repayments can become overwhelming when you have to consider credit cards, car loans and personal loans on top of your home loan. If you’re not able to pay off your debts completely, you may want to consider simplifying your repayments by refinancing for debt consolidation. By doing this, you merge any debt under your home loan. So, instead of making multiple repayments, you make one per month.
With a little bit of planning and preparation, you can make sure you’re in the best financial position possible in the new year. If you need help fulfilling some of your 2023 financial resolutions, Rostron Finance is here to help! Our team of experienced brokers can help you find the perfect loan to ensure your finances are in tip-top shape.
Want to know more about how the Rostron team can help?
Give us a call on 1300 661 880 – we’d love to chat!