So, you’ve just bought your first home, congrats! That’s a massive milestone. But now that the keys are in your hands and the photos are up on Instagram, a new question starts to bubble up: "How do I actually manage this mortgage?".
It’s totally normal to feel a bit overwhelmed. This is likely your biggest financial commitment so far, and with interest rates, offset accounts, and budgeting to juggle, it’s easy to feel like you’ve been thrown in the deep end. But don’t stress, a few simple strategies can make your home loan feel way more manageable.
Set and Forget (Sort Of): Automate Your Repayments
The golden rule? Never miss a mortgage repayment. The easiest way to stay on track is to set up a direct debit from a dedicated account. Choose a repayment frequency that suits your income flow, fortnightly payments may help reduce the total interest paid over time, depending on your lender’s repayment structure.
Pro tip: some lenders allow flexible repayment dates. Match yours to payday so there’s always money in the account.
Give Your Budget a Mortgage Makeover
Your money habits will likely shift now that you’re repaying a home loan, and that’s a good thing. This is the time to get intentional with your spending.
Start by reviewing your monthly expenses: utilities, strata, council rates, insurance, groceries, streaming subscriptions (we see you, seven apps later…). A simple spreadsheet or budgeting app can help you track where your cash is going and where you might trim a little.
Consider setting aside an emergency buffer so you have funds available if unexpected expenses arise. A financial adviser can help you determine an amount appropriate for your circumstances.
Offset Accounts and Extra Repayments: Useful Tools to Reduce Interest
Some borrowers choose to use loan features such as offsets or additional repayments. Understanding how these work can help you decide whether they suit your circumstances.
- Money kept in an offset account may help reduce the interest calculated on your loan balance
- Making extra repayments, even small ones, can make a big impact over time. Some borrowers choose to make additional repayments when possible. Whether this is suitable depends on your financial situation
These steps aren’t just about becoming debt-free sooner (though that’s a great goal). Extra repayments increase the amount of equity you hold in the property. A broker can explain how equity is assessed if you later explore refinancing options.
Keep Tabs on Your Interest Rate (and Be Open to Refinancing)
Your interest rate isn’t set-and-forget. If you’re on a variable rate or your fixed period is ending soon, check in at least once a year to see if you’re still getting a good deal.
Refinancing may offer different rates or features depending on your circumstances. A broker can help you compare options and a mortgage review can help you understand how your current loan compares with other options.
Ready to Feel in Control of Your Mortgage?
Managing your first mortgage doesn’t have to feel overwhelming. With a few smart systems in place and the right support behind you, you can stay ahead of your repayments, reduce interest, and feel confident you’re building a strong financial future.
Our free First Home Buyer e-book is packed with tools to help you take charge, including budgeting worksheets, repayment calculators, and step-by-step guidance on refinancing and using equity down the track. Whether you’re just settling in or already thinking about your next move, this guide has your back.
Download your free First Home Buyer e-book now and help you feel more informed and confident in managing your loan.
