Too many property owners are paying the price for not obtaining independent advice when they arranged the finance for their property purchase.
No matter how informed you are or how good a loan might seem, discuss the loan structure & your options with a property lawyer before committing to the loan.
Tip 10 – Additional Loan Payments
- Where you have a principal and interest variable-rate loan, confirm with your Lender that you will not be charged any penalty where you make additional payments (above the minimum monthly amount).
- An additional payment above the minimum monthly amount will reduce the length of the loan and the amount of interest paid to the bank.
- Where interest rates are reduced and therefore the minimum monthly amount is reduced, by keeping the loan payments at the same level, you will reduce the length of the loan and the amount of interest paid to the bank.