By Natalie Bochenski

Your mortgage is likely to be the longest-running debt you have, and, save an unexpected inheritance or lottery win, take you some years to pay off. But it doesn’t have to be the 20, 25 or 30 years stipulated by your loan documents. Some insider tricks and a bit of discipline can see you shorten the long game quite considerably.

Those looking to buy for the first time now are in the best position to save cash in the future. Anita Bell, author of the best-seller Your Mortgage and How to Pay it Off in Five Years, recommends shopping around for loans. “You should always ensure you have looked at a strong cross section, including the top four banks, at least two credit unions and two building societies,” she says. Bell also advises giving your existing financial institution a chance to better an offer, and make a free, no-obligation appointment with a good mortgage broker to see if they can negotiate you a better deal.

A common question for mortgage hunters is whether to go with a fixed or variable home loan rate. Belinda Field and Margaret Ryan are Brisbane-based ANZ Mobile Lenders, and say this is determined by the individual’s financial needs and circumstances. “Borrowers also need to consider the economic outlook and how this might affect their job prospects, investments and family budget and cash flow,” says Ryan.

Kristy Sheppard from mortgage broker Mortgage Choice says at present the average fixed rate is on par or slightly higher than the standard variable rate. “Choosing a fixed rate loan provides peace of mind over the repayment amount during that fixed term,” she says. “However it may be disappointing if you choose a fixed rate, then watch variable rates trend down during your fixed term.”

Anita Bell has a seven point checklist for selecting a mortgage (reproduced below), but her number one insistence is that the loan must be daily reducing – so that cash payments are deducted from the amount owing on the day you deposit them. She also stresses the importance of being able to make extra payments without penalty – whether fixed or variable – and being able to pay off the principle, not just the interest.

Above all, avoid too many mortgage “bells and whistles” – as many packages include features you may never need. And try to make fortnightly rather than monthly payments – it’s a simple insider trick to ensure you make one extra repayment a year.

Perhaps you already have a loan. Are you happy with it? How long has it been since you checked it against your budget? It might, in fact, be time for a review. All the experts suggest a regular review – every one to two years.

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