Mortgages are long-term debts that have made you own a home. If you cannot manage your budget to cover the mortgage well, you will get penalty and have negative record in your credit history. Below are some tips to help you manage your mortgage more effectively:
1. Pay on time
When you regularly repay your mortgage on time, you will keep a good record in your credit report. This will make you easy to request for any better conditions such as lower interest rate, paying off your debt sooner, etc. If you feel that you could not pay on time, you should contact your lender as soon as possible before the repayment date in order to consult for an appropriate solution.
2. Review your mortgage regularly
Banks and microfinance institutions are increasingly offering better conditions for homeowners, including their existing mortgage clients. If you are a good client, you will be deserved for any good offer from the lender when you make a request for a top up loan, etc. You should also check if you are following all the conditions in the loan contract to make sure that you are doing in the right track for your healthy credit record.
3. Cut your debt
It is essential that you could cut your bad debts so that you are able to save up to repay your mortgage. Bad debts are debts that don’t really add value to your finances such as impulse buying that you purchase with your credit card. For example, when you see a new series of smartphone, you prefer and you suddenly buy it with your credit card, as you have not planned before at all.
4. Be frugal
It will take you for years or nearly full your life to pay off your home loan/mortgage and it will even take longer if you do not manage your finance to repay well. If you want to pay off your loan sooner, you better commit yourself to spend less on some insignificant things such as new brand of clothes or new series of smartphone because you would not want to be in debt for long time at all.
5. Keep in touch with your lender
It is beneficial that you keep a good relationship with the microfinance institution/bank since your mortgage was approved and disbursed. In a period of 10 years, things can change, such as interest rate levels or bank products. Maintaining a healthy relationship with your mortgage provider could make you easy to take a top up loan or request for a better interest rate.