Keeping on top of your loan
By now, you’ve probably read about how to save for a deposit, what you’ll need when it comes time to buy, and how to apply for your loan.
But it’s not always easy to find out what happens after that. Like, how does the money actually come out of your account? What happens if you need help?
The great thing about being an Up Home customer is everything you need is in one spot. From your app, you can see how your loan balance and upcoming repayments are choofing along, and other important details like how much is left in your budget for chicken nugget runs.
It all puts you on the front foot when it comes to managing your loan. No mysteries. Total transparency. Data! Charts! Animations!
But what about the other bits? Here’s what you need to know about keeping on top of your loan.
Remember, any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation.
You’ll pay back your mortgage over time, by making regular repayments into your loan account. The frequency and amount depend on the options you choose when you take out your loan.
Some of that money is actually yours, like a forced savings account but it’s bricks – you’re paying it down on the principal, and now you own a bit more of the place! And some will be direct debited out as interest. Your interest will be debited from your account at the same time each month. Like rent, interest is your regular commitment to having a home, except this time you don’t have to ask permission to put up your Song Joong‑ki posters.
As long as that transfer is coming out of your account, your mortgage is paid. The repayment includes interest (the cost of borrowing money), principal (the actual money you borrowed), as well as Lender’s Mortgage Insurance, if you have it.
If you’ve chosen a Fixed Rate loan, you’ll pay the same amount every time, for as long as your rate is fixed.
If you’ve got a Variable Rate loan, the amount you pay will vary as market interest rates change. We’ll let you know when those rates change – you won’t be caught out.
Offsets and extra repayments
Up was designed to make it easier to save – and you can use its features to pay off your loan faster, if you want to, and save real $ in interest over the life of your loan. There are heaps of ways to make your Up account work hard for you.
For example, you can offset your loan just by keeping your money in the Spending and Saver accounts linked to your loan (either your own Up or the 2Up account you share with your partner). The amount of interest you pay in each repayment is calculated based on how much you owe. But every cent in your Savers reduces the “owe” amount in that calculation. Keeping your money in Up Savers will help reduce the interest you pay.
Round Ups will chuck in extra almost without you noticing. You might already be using this feature to stash the extra cents from every transaction you make, but now when they hit a Saver, they’re saving you real time on the term of your loan.
The rest of the time, use Insights to see where your money’s actually going. Surprise! Turns out you’re still paying for the family streaming service your ex is secretly using. Shut that down. That’s just money you can use to pay down your loan (or get a different streaming service for your new love (your new love is your own home)). We’ve got a whole thing over here about how Up features can save you time and money on your loan.
Staying across how your payments may change
Markets are always in flux. They’re affected by the general state of things, politics, global conflicts, and which megalomaniac tech leaders are buying which hilarious meme platforms.
Sometimes, a changing market – even if the reasons are far away – can have an impact on your home loan. The most common way is changing interest rates. Over time, they inevitably go up and down.
Nobody can predict the future, but watching what’s happening in finance markets (say, what the RBA is intending to do with the price of money) can keep you informed as to whether your payment is likely to shift up or down in the coming months.
That might feel a bit heavy for you, but pretty much every news outlet covers interest rate changes because they affect so many Aussies. Keep in mind that journos have a saying that “if it bleeds, it leads”. In plain English: stories that say “everything is awful” are likely to get more airtime than “things are probably going to be manageable”. We reckon it makes sense to read a bunch of different sources, keep calm, eat snacks, and control what we can control.
Talking to us about what you need
You love your Up Home loan, but you’re not married to it. It’s always a good idea to check in with it and see if you’re both still working towards the same goals.
People change. As time goes on, you might have a different income, a new living arrangement or need other features.
Loans also change. We love to introduce new features with ridiculously fun interfaces that make life easier. Industry policies and guidelines surrounding loans can also change, which may have an impact on your loan.
Whatever the reason, we’re always here to have a chat about how Up Home works for you and what you need.
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