Natalie Bochenski reports

I don't know about you guys, but I'm still waiting for my interest rate reduction to kick in. So I'm working on some top tips on how to put some extra cash into the mortgage.

- If you’re heading into the housing market, make sure you get a package that offers a 100 per cent mortgage offset account. If you already have a mortgage, ask your bank (or in the worst case another bank or mortgage broker) about getting one. Have your salary paid into it, deposit any lump sums like tax returns into it - every dollar in that account will be deducted from the interest you have to pay on the balance of your mortgage. So if you’ve got $100,000 on your mortgage, but $10,000 in a mortgage offset account, you’re only paying interest on $90,000. It saves you money with very little effort – money that’s still available to be used if necessary.

- Set up internet banking, and link your accounts. Make it easy to transfer an extra $5 or $10 into your mortgage account (or offset). Every little helps – an extra $20 per week put into the average mortgage will save around $105,000 in interest on the total loan amount, plus 5 years and 2 months off a 30-year loan term.

- Increase your income. Ask for a raise, look for another job, take a smaller second job, sell some stuff on eBay. Look for opportunities to bring in extra moola you can whack on the mortgage – but for goodness’ sake, don’t exhaust yourself!

- Reduce your expenses. Check your other regular payments – groceries, utilities, insurance car repayments, public transport costs, holidays etc. Can you make savings? Of course you can. Start small. Ring around insurance and energy companies to see if you can get a lower rate if you switch. Re-evaluate your credit cards reduce them down to one, or consolidate into a new, low-interest rate card. Throw some home brand grocery items into your shopping trolley, buy meat in bulk, or learn some tasty vegetarian recipes.

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