Use every dollar twice. The humble little mortgage offset account lets you deploy money for its intended purpose – your Holy Sh*t or six-month emergency cash stash, savings for your next holiday or for school fees – and to save you lovely loan interest. Just be careful you have a real offset and not one of the many fakes.
Get the bank to ‘pay’ your mortgage interest. Invoke my offset-on-steroids strategy: park your salary in a clearly designated offset account and live off a credit card with a long interest-free period. Only when the bill is due, move the money from your offset onto the credit card. But heed my warning to make sure this works.
Up stumps but still stump up. Better still, ditch that expensive big bank loan for the one of the best value ones (note, the cheapest could end up really costing you), charging just 3 per cent. The free app that accompanies my book automatically calculates your savings if you move your loan then cleverly keep your repayments the same.
Make your repayments fortnightly. If you simply halve your minimum monthly repayment and pay this amount fortnightly, you’ll get a whole month ahead each year with very little pain to your pocket. Trust me – it’s a quirk of our Gregorian calendar.
– Extract from How to Get Mortgage-Free
MONEY SAVER: Sunshine Coast resident Nicole PedersenMcKinnon with her children at their home and, inset, with financial analyst and TV presenter Paul Clitheroe. LEFT: A family interviewed by Nicole for her book.