Five ways that could save you money on your home loan

Rising prices have put many homeowners under pressure, but thankfully there are several ways you could lower the cost of your loan. Here are five ideas.

If you’ve been feeling stretched by the cost-of-living pressures, the added stress of uncertain home loan repayments may be something you could do without.  

While some costs are hard to avoid, there are several tweaks you can make to your home loan, which could reduce how much you pay each month. Consider these five.  

1. Regularly review your home loan and interest rate

Over the course of your home loan, your life circumstances are likely to change, which is why it’s important to check in to see if your home loan is still fit for purpose. For example, you may have started with a no-frills loan but found you may need a few more features. Regularly checking in on the offers and rates available can help to ensure you’re getting the best deal for your needs and situation.

2. Consider a fixed-rate loan

If you’re worried about the prospect of interest rates rising further or just want a bit of added repayment certainty, you may wish to consider a fixed-rate home loan. For the duration of your fixed term, your rate won’t change and neither should your repayment amount. It can make it easier to budget.

3. Look for cashback offers

From time to time, lenders will offer cashback deals, which essentially put money back into the pockets of borrowers when they switch to a new home loan. If the offers suit you, it could be a way to pay for anything from bills and groceries to that next family holiday.

4. Watch for fees

If you’re trying to save money, a high, ongoing home loan fee certainly won’t help. Take a look at how much you’re paying to keep your loan going and see if there’s a better deal available. If you refinance to a new loan, don’t forget to look at the upfront and exit fees.

5. See if you can make extra repayments

If you manage to find a bit extra in the budget from other hacks, making extra repayments could help to bring down your principal more quickly. You may also end up paying less in interest over the life of the loan.

Our cashback offer

Police Bank has come up with a hot new offer for members looking to pair interest rate certainty with extra cash to manage higher living costs.

Eligible members can now refinance a home loan from another bank to a two or three-year fixed rate and receive $2,000 cashback+. The fixed-rate offered is below six per cent on the Police Value and Goldrate home loan products.

As a lender operating for members, rather than shareholders, we’re able to offer this great rate and cashback package to ease the cost of living burden of our members.

To find out more and apply, click here.

Spotlight articles are prepared without taking into account your objectives, financial situation or needs and are published for information purposes only. You should consider the appropriateness of any content for your circumstances.

Visit Important Documents & Information to access Terms and Conditions and the Financial Services Guide, which are currently available electronically for products of Police Bank Limited. Target Market Determinations are available here. Loan applications are subject to lending criteria and credit approval. Interest rates are subject to change. Fees and charges may apply.

+ Cashback Terms & Conditions, two and three year fixed rates

+ To be eligible for the Police Bank cashback offer, applicants must be refinancing an existing Owner Occupied home loan of $300,000 or more from another financial institution (excluding Border Bank and Bank of Heritage Isle) with a salary credited directly to a Police Bank account.  Only applicable for 2- or 3-year fixed rate home loans. The offer is only available to applicants who apply and are approved from 18/03/2024- 30/6/2024. Eligible loans must settle within 90 days of application.

The cashback is only available once to each individual or joint applicant(s). The cashback amount will be credited to either the primary transaction account for single borrowers or a joint account with the primary borrower within 60 days of settlement. The salary credit must be set up within 60 days from loan settlement. If multiple loans apply, all loans must be funded before the total cashback is assessed and paid. The total sum of all loans funded must exceed $ 300,000. This offer is not available in conjunction with any other offer, bonus or discount. We reserve the right to withdraw this offer and/or alter the offer period at any time.

This offer is available to all fixed rate OO, P&I loans excluding loans guaranteed through the Housing Australia schemes.

*Terms, conditions, fees, charges, eligibility and lending criteria apply.

• There is a Rate Lock in fee of $600
• Interest rates are subject to change and we may vary the rate offered at any time without prior notice to you. To find out our home loan rates please click here.
• ^The comparison rate is based on a loan of $150,000 over a 25-year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
• Lenders Mortgage insurance (LMI) is applicable on all loans with an LVR of above 80%
• Early repayment costs may apply if you repay your loan or switch to another one before the end of your fixed term or make early or additional repayments. Once the fixed rate period ends, the loan reverts to a variable rate loan and repayment amounts will change.