How to save on your mortgage even if the RBA holds

The RBA is expected to hold the cash rate again when it meets next week, but that doesn't mean you can't save on your home loan repayments.

While rates remain on hold it is a great time to check in on your mortgage and take a holistic view of whether it suits your needs.

Reviewing your loan terms and rates can save you money and help you plan for the future. Here are some steps you can take:

Schedule mortgage checkup annually

If you aren't regularly checking in on your mortgage or banking products, then set a date in your calendar.

It could be during a long weekend where you typically might have more time to review your situation thoroughly, or any other significant date, but set a reminder in your calendar and stick to it.

An hour should be enough to review and compare competitor rates, check if there is a fixed term ending soon that you have to plan for, or adjust your repayments.

Maximise your repayments

Everyone wants to get ahead on their mortgage. The best way to reduce the amount of interest you repay overall is by paying more than the minimum monthly repayments.

Even small amounts can make a big difference over the life of your loan and could also provide a redraw cushion if you need to reinvest in a home improvement project.

I often tell people to review repayments around the time of their pay reviews as an increase in income can be quickly redirected to their mortgage.

Also, there is a common misconception that you can only make extra repayments on variable rate loans.

Many fixed rate loans allow additional payments up to a certain amount, so read your loan terms and figure how much extra you can add each month.

Communicate with your lender

Proactively engage with your bank (or through your broker) by letting them know what your goals are and negotiate for a better deal.

Some banks offer home loan packages with a range of add ons. See what you are paying for, and if you are making the most of the bonus features.

If you anticipate any changes in your financial circumstances, good or challenging, contact your bank as soon as possible. Banks are here to help you achieve your goals and support you if things get tricky.

Look at the value of your home

If property values have moved in your area, your home could have increased in value as well. This could affect your loan to value ratio (LVR) and any associated costs, like lenders' mortgage insurance, that are associated with your loan.

You may also think about how long you plan to live in the house - the longer that is, the more time you have to realise any potential savings.

Ask an expert

You don't have to do this all on your own. Consulting your lender is a good place to start, but after reviewing your goals you might want to get further specialised advice from a financial adviser, tax specialist or lawyer. Just make sure they are registered and reputable.

Your finances, interest rates, economy and property values all change regularly - even monthly.

Regularly checking in ensures that your mortgage is in alignment with your financial situation and goals, as well as ensuring that you are getting the best deal your bank can give.

So schedule your annual mortgage checkup today.

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