At Seed we don't just provide a means to compare multiple lenders at once and find you the best deal; we pride ourselves on educating our clients to control better and manage their mortgages. 

At a time when home loan rates are at record lows, and prices of houses seem to be at record highs, we think these five tips will be extremely beneficial when paying off a mortgage and making sure you are on the best deal possible.

1. Avocados do not buy houses.

I am of course referring to the avocado-gate incident when columnist and KPMG partner Bernard Salt sparked a viral debate about the futility of home ownership amongst millennials. “I have seen young people order smashed avocado with crumbled feta on five-grain toasted bread at $22 a pop and more. I can afford to eat this for lunch because I am middle-aged and have raised my family. But, how can young people afford to eat like this? Shouldn't they be economising by eating at home? How often are they eating out? Twenty-two dollars several times a week could go towards a deposit on a house” Salt said. 

The truth is, this applies to everyone with a mortgage, and the responsibility lies with you to review your expenses and pay a little bit extra into your home loan every week if possible. Even for as little as one breakfast out per week, you can reduce your mortgage by up to 8-10 years. Not a big sacrifice when you think of the interest and time savings. 

2. Health Checks 

At Seed, we want to grow together. Regular health checks every 12-24 months on your mortgage are essential to see if you are on the best deal possible. Staying informed is key!

We do not just set and forget when it comes to our clients. When we perform these health checks, some common outcomes consist of, restructuring the loan, obtaining a lower rate, lowering fees and charges and releasing equity to name a few. 

3. Offset or redraw?

Sometimes both! The money you put into your offset account lies there available for you whenever you want to use it and for whatever your want to use it for. The balance you have sitting in this account will reduce the interest payable on your mortgage. 

Some loans do not have an offset account but do have a redraw facility whereby you put extra repayments into the home loan and have the ability to redraw the amount you are ahead to use for any purpose you deem necessary. 

Both of these features are great at saving interest over the life of your loan. After all, a mortgage is a marathon, not a sprint and wherever you can save a small amount, that small amount will add up over time. Speak to us to learn more. 

4. Lump-sum payments

It is always nice to get a bonus, the gift of money or tax refund for example. Like most of you, I am assuming, my first reaction was to spend it all on myself or others usually. 

This is no longer the case, and now I sacrifice a purchase or two for myself to pay a little bit off my mortgage every time I get some extra cash. Keep in mind the redraw option for rainy days. When it comes to paying off your home loan sooner; success is the sum of small actions performed every single day.

5. Don't be afraid of smaller lenders

Smaller "non-traditional" lenders outside the "Big 4" have some sharp rates and fantastic features!

Don't let fear keep you from shopping around and considering the benefits of these lenders. They might not have the budget of a big bank, so they are traditionally not so well known, but this can work as a tremendous benefit to clients. We have a broad range of these lenders to choose from, speak to us today and let's see if one of their products suit you.

So there they are!

This list is by no means exhaustive, but we do think the tips are beneficial to educating those interested.

We understand home loans are not a favourite topic to talk about around the BBQ with friends, but we are hoping Seed Home Loans and what we can do will be.