There has never been a better time to review your expenses, including your mortgage if you have one. One young couple with 2 young children recently did this and are now saving $10K per annum. Read their story and you might just be motivated to do the same!
Q. What prompted you to review your finances?
It had been some time since we reviewed our household expenses. We’ve got two young kids in daycare and wanted to reduce our structural household expenses and grow our redraw by refinancing to help us plan for the next 5 years.
Q. What items in your expenses did you examine? E.g. insurances, utilities, home loan
Everything! Aside from the things we could negotiate (insurance, utilities, home loan) we reviewed other spending patterns to incorporate better practices such as shopping at the market (not supermarket) where possible, better planning of meals, and ensuring we cooked enough to have leftovers for lunch the next day!
Q. How much time do you think you invested in this exercise?
Not long. A day each at the most, spread over a few weeks. We each took a couple of things and ticked them off the list over a period of a couple of weeks
Q. What outcomes have you had in terms of savings and better service?
We’ve decreased our annual structural expenses (ie insurance & home loan) by about $10k per annum, and our shopping spend is down too. We picked up a few new features on our new home loan and we can see at the end of each month we have less money requiring clearing on the credit card (we put household expenses on the CC and clear every month)
Q. I know your new mortgage is still to settle, but what features were you looking for in a new loan that made it worthwhile changing lenders? I understand you will receive a $2000 rebate and a lower interest rate, is there anything else you would like to mention?
Not really. The unlimited offset accounts were handy as we have some flexibility over keeping our money and savings across a few accounts, and the $2000 rebate helped seal the deal as it covered most of the change costs.
Q. Overall, has the experience to change to other providers been worthwhile and would you recommend others invest the time to do so? If so, why?
Yes – it was super easy and will allow us to make ground on our mortgage faster than we thought we’d be able to with the kids in daycare. Louise made the home loan change super smooth, and the Vic Govt energy compare website made the utilities comparison easy!
If you would like to do the same as our clients and have us review your home loan to see if we can save you money, please give us a call on 1300 881 220.