The home loan is the most expensive part of the typical family's living costs today. Increasingly they consumer a huge percentage of the family budget. In some cities such as Sydney, Brisbane, Melbourne and Perth, as well as regional centers like the Gold Coast and Northern Rivers of NSW, home loan costs can be up to 40% or more of the family income. Money saving tips are gold to people who are stretched to their limits and feeling the stress and worry of not having enough money to meet the mortgage.

1. Pay more frequently

Most mortgages repayment schedules are based on monthly repayments with interest calculated daily. If you re-structure the repayments to fortnightly repayments you can save significant amounts as the money is working harder for you by paying mid term (month). Your lender's mortgage calculator will allow you to check this.

2. Establish a mortgage offset account

Money can be saved by using a mortgage offset facility. Most mortgages will offer this option. A mortgage offset account is simply a savings account linked to your loan. Treat it just like a savings account, for example having a proportion of your wage or income paid into this account. The amount in the account is offset against the mortgage hence reducing the interest amount charged for the period the savings are at work. This is especially useful for lump sums such as tax refund cheques which can give you much more financial benefit in an offset account than spent on a new car or a holiday!

3. Shop around

It's the digital age so use it! This is a time when you can click around with your mouse and do a comparison shop for any conceivable product - including home loans. This is particularly important for owner occupiers or investors who may have had loans for many years and who have not bothered to switch their loan or renegotiate. These days in such a competitive market where money saving opportunities abound, you may be paying too much on your existing loan.

Of course it can be a tricky road to go on when you start to look to save money on your home loan. You need to check the fine print; you need to be aware of the costs incurred in switching loans for example and you need to speak to a reliable mortgage broker to help you in your decision-making.