4 ways to save big bucks on your home loan

A recent uno survey found that 77% of mortgage holders view refinancing as a hassle. uno’s platform removes the hassle and lets you search for a better deal on your mobile phone in 10 minutes.

Refinancing your home loan can be a right pain in the caboose. The process whereby you switch your interest rate – usually to clear your mortgage faster, pay less overall or extract some equity to fund renovations – sounds great in theory, but can end up being a hassle, too hard or overly time-consuming.

If your current home loan is through a bank, refinancing tends to involve standing in line on your lunch break or listening to Greensleeves on the phone while you wait to speak to a broker. Confusion is likely to ensue, followed by tons of paperwork, before you decide the whole thing’s way too difficult and you can’t be bothered.

Well, now you can avoid all of those things by searching for a better deal on your mobile phone using a process that takes around 10 minutes. Here’s how to trial our tech and three other ways you can save on your home loan:

1. Use uno’s tech to find a better rate – it takes 2 minutes

A survey of 1500 mortgage holders by CoreData on behalf of uno found that 74% of Australian mortgage holders are put off switching lenders because of the time involved. Seventy-seven per cent view refinancing as a ‘hassle’.

As an active home loan manager, uno removes the hassle. We scan the market daily using our loanScore technology. Our tech can analyse your loan against thousands of home loan products in the market and see what else is out there.

Once we find a better deal for your circumstances – one that will save you some cash – we send an alert, letting you know it might be time to switch.

With your approval, uno can then act on your behalf – renegotiating with your current lender for a better rate, or switching you over to a new deal with another lender.

Check out loanScore

If you get stuck along the way or have any questions, our qualified team of experts are here to help 7 days a week. Give us a call, send an email or request a call back at a time that suits you.

2. Switch to weekly repayments

Most homeowners will pay off their mortgages monthly, simply because that’s the way their bank or lender set up their home loan. Interest accrues daily, so by moving to weekly repayments, you’ll actually pay off more of your loan each year (without really noticing) and reduce the overall interest you pay.

By way of example, let’s say you’re paying $1,875 each month on a $400,000 home loan, at 3.84%. Over 12 months, you’ll end up paying $22,500 plus $273,616 in interest over the life of the loan. By making weekly repayments, you’ll actually pay $468.75 each week, or $25,311 over the year ($2,811 more than if you were making monthly repayments). In this example, you have reduced the loan term by four whole years and reduced the total interest over the life of the loan to $232,337, which saves you $41,279 over the life of the loan.

While most lenders will allow fortnightly direct debits, not all will allow weekly repayments so speak to your lender about your options. You can generally get around it however by requesting a direct salary credit on your account where your account is suspended and you transfer the funds weekly – meaning the onus is on you to transfer them.

3. Set up your repayment date to be a few days after the day you get paid

If you get paid on the second Thursday of each month, set your home loan repayment date to be the following Monday each month. This leaves some room to extract money for bills, groceries and living expenses but pays off your loan as soon as possible – always the best option when it comes to keeping your interest low.

Mathematically, interest is calculated on the daily balance, meaning every lender does a calculation to say this person just accrued x amount of interest at the end of each day. If you can minimise that balance on that day, you save on interest and pay your debt off sooner.

4**. Increase your payments by as little as $50 a week**

A good way to pay off your mortgage sooner is to pay a little bit extra each time you make a repayment. An easy way to do this is to round up the amount you pay each week. If your weekly repayment is a number like the $468.75 example above, why not round up your repayments to $500 a week? The extra dollars will amount to an extra $1,625 a year on your loan and reduce your overall loan term significantly (by approximately 3.5 years). They’ll also save you $37,000 in interest over the life of the loan.

Doing the four things mentioned above should save you a bucket load of cash, particularly if you’re just haemorrhaging money because your lender is charging a rate that’s too high.


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TESTIMONIALS

What our customers are saying

A M
June 21, 2024
I only have praise from my Uno experience! I was a broker sceptic, having done all of the hard work myself for my first two property purchases and sale. I'm now a proud broker advocate having used UNO (Karis Churchill) for two refinances and purchase. The value add Karis brought cannot be underrated! Not only has Karis got me the best rate, with a bonus cash back (nearly unheard of in this climate), she has done it with the least back-a-forth and with the least administrative burden on me (the thing that can deters people from refinancing to begin with). Karis is always on top of everything. Karis knows her stuff. She is the most responsive of any professional service provider I've ever used (my banker never text with an update at 7pm on a Sunday) without being overbearing. You know she's got your back and in my experience the value speaks for itself. Thank you to the whole UNO team, thank you especially to Karis.
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Leanda Cawdry
June 8, 2024
Very pleased with the outcome of this process, Michael Parsons and his team at UNO were helpful, communicative, and took all the stress out of the process of finding me a refinance deal that met my needs. Would definitely recommend Michael and UNO, and I already have!
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Glen Matthews
May 29, 2024
Regarding UNO Home Loan services. I had great experience with uno home loans, Michael parsons was my broker for UNO Home Loans we had excellent communication throughout the whole home loan application. If I had any questions on home loan application which were many were answered in great detail. He had the time to assist me in filling out endless application forms at anytime through the day or night which made the application process stress free. So I would strongly recommend Michael parsons from UNO Home Loans to try his services you will not be disappointed. Thanks to Michael parsons I have the lowest home loan interest rate I could ever hope for which I particularly ask for. It’s was a pleasure working with him. And will be using his services in the near future.
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Gillian Anderson
May 28, 2024
Thank you to Michael and UNO for their help in securing our home loan. I like the way they break everything down in simple terms to ensure that you can make the right decision. Michael was polite and very patient to help us get things across the line. We are now sitting in our first home away from rental circus. Can't recommend them enough. Thanks Michael and thanks UNO
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Andy Song
May 17, 2024
Amy has been absolutely wonderful as a broker. I would not hesitate one bit in recommending her services.
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Troy H
May 13, 2024
Scott Wilkinson did a great job as my broker. He was very patient and always happy to answer my numerous questions throughout the considerable period of time that it took to secure a suitable property. Would certainly recommend Scott and the team at UNO for anyone seeking a broker.
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Elvin Singh
May 10, 2024
First time I have used a Broker and I must say Andrew Wyers and his team were amazing to work with and handled my refinance from a Big4 bank. He was able to understand my needs and find a lender that will be able to help me grow my investment portfolio. Andrew and his team kept me updated as part of my refinance journey and made the process super easy and I was able to refi to new lender in under 2 weeks. Would highly recommend Andrew.
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Nadine Steffens
April 19, 2024
Scott and the team at Uno are absolutely 💯 amazing. I don't think I could have done my loan on my own. They are highly motivated and I do recommend them.
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Andrew
April 16, 2024
Dealing with Scott Wilkinson was an absolute delight. Scott is tenacious, hard working and readily available. He made a very stressful process for me and my partner smooth sailing. Would highly recommend.
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Liam Sugiono
April 15, 2024
Amy and her team were efficient and knowledgeable as our broker. They were easily contactable and ensured all our needs were met.
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Mike Vincent
April 10, 2024
Andrew is the best broker I have worked with and one of the few people who understands the investment journey from both a personal and professional standpoint. Andrew is an asset to anyone from a first home buyer to a seasoned investor.
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Yu Su
April 9, 2024
Amy was very help and quick respond when I have questions. Really recommended.
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