Financial expert Canna Campbell has revealed the five mortgage hacks she swears by, as she and her family of four prepare to move into a new home in Sydney’s Bondi Beach.
The 39-year-old planner said moving is stressful, but it doesn’t have to be provided that you plan and prepare your finances for a new mortgage accordingly.
‘There are five hacks I swear by for paying off a new home fast,’ Canna said in a YouTube video on the subject.
Financial expert Canna Campbell has revealed the five mortgage hacks she swears by, as she and her family of four prepare to move into a new home in Sydney’s Bondi Beach (pictured with her son)
The first – and most important – thing you need to do is review and update your family budget (stock image)
Canna (pictured) recommends you get a quote for your new electricity, gas and council rates, so you don’t get a nasty bill shock when you move in
1. Review and update your budget
The first – and most important – thing you need to do is review and update your family budget.
‘Being in a new home and a slightly bigger home, some of our existing household expenses are going to increase, for example our home and contents insurance,’ Canna said.
You need to organise a quote and factor it into your budget straight away so you don’t get a nasty shock when you move.
Canna recommends you also get a quote for your electricity, gas and council rates, and then speak to your partner about all of this so that the family budget has been communicated effectively.
‘We have decided to try and make some cutbacks where we can, for example our growing family grocery bill,’ Canna said.
The Campbells are doing this by adopting an increasingly vegetarian diet.
The second thing Canna (pictured) said you need to do in order to pay off your mortgage fast is make sure you are adequately insured
2. Make sure you are adequately insured
The second thing Canna said you need to do in order to pay off your mortgage fast is make sure you are adequately insured.
‘To my absolute horror, I discovered that Tom [her partner] had no personal insurance whatsoever and had never had any in place,’ Canna said.
As soon as she discovered this, she said she acted and organised an application for life cover, TPD cover and critical illness or trauma cover as well as income protection to age 65.
She recommends everyone do the same.
‘I have always had all cover. In fact, I am possibly over-insured,’ Canna said.
‘But I don’t want to change that, because my family’s protection is well worth that investment.’
She said you need to agree on your joint financial goals and work from there; for example, she said what is important to her and Tom is paying off the mortgage and investing (stock image)
3. Agree on joint financial goals
Canna’s third hack relates to your financial goals, whether alone or with a partner.
‘For Tom and I, the most important thing is that we pay off the family home,’ Canna said.
‘The quicker we do that, the more disposable cash we’ve got for family holidays, experiences and investments.’
Once you have agreed what is most important, Canna said you should look at the family budget and agree on an extra repayment plan to ensure your home is paid off as quickly as possible.
‘We have also agreed on a regular investment plan that includes debt recycling,’ Canna said.
‘The debt recycling strategy will allow us to prioritise paying off the home, while also recycling.’
4. Set up your wills
Canna said she and Tom have spent the past week or so setting up their wills, to make sure that if anything happens to them, their assets are distributed exactly to their wishes and in a way that minimises tax.
‘This is more complicated than people think,’ Canna said.
For instance, the ‘will kits’ that you can typically buy from places like the post office ‘aren’t worth the paper they’ve been written on’, she said.
Canna (pictured) said by organising a delayed settlement for when they move out and into the new home, she has given herself and her partner some ‘time and space’ to stockpile finances
5. Stockpile your finances
Finally, Canna said by organising a delayed settlement for when they move out and into the new home, she has given herself and her partner some ‘time and space’.
‘Time and space to put some money aside so that that the day we move into our new home, we will actually pay our mortgage repayment right there and then,’ Canna said.
‘Technically, by doing this we are paying our mortgage 30 days earlier, and this little move alone will save us over $14,000 in interest and four months off our home loan.’
Canna said that it’s ‘incredibly rewarding’ knowing that when they spend their first night in their new home, they are already ‘ahead of the game’.