Mortgages are long-term debts that have made you own a home. If you cannot manage your budget to cover the mortgage well, you will get a penalty and have a negative record in your credit history. Below are some tips to help you manage your mortgage more effectively:

1. Pay on time

When you regularly repay your mortgage on time, you will keep a good record on your credit report. This will make it easy to request any better conditions such as lower interest rates, paying off your debt sooner, etc. If you feel that you cannot pay on time, you should contact your lender as soon as possible before the repayment date to consult for an appropriate solution.

2. Review your mortgage regularly

Banks and microfinance institutions are increasingly offering better conditions for homeowners, including their existing mortgage clients. If you are a good client, you will deserve any good offer from the lender when you request a top-up loan, etc. You should also check if you are following all the conditions in the loan contract to make sure that you are going on the right track for your healthy credit record.

3. Cut your debt

You must cut your bad debts so that you can save up to repay your mortgage. Bad debts are debts that don’t add value to your finances such as impulse buying that you purchase with your credit card. For example, when you see a new series of smartphones, you prefer and you suddenly buy it with your credit card, as you have not planned before at all.

4. Be frugal

It will take you years or nearly full of your life to pay off your home loan/mortgage and it will even take longer if you do not manage your finances to repay well. If you want to pay off your loan sooner, you better commit yourself to spending less on some insignificant things such as a new brand of clothes or a new series of smartphones because you would not want to be in debt for a long time at all.

5. Keep in touch with your lender

It is beneficial that you keep a good relationship with the microfinance institution/bank since your mortgage was approved and disbursed. In 10 years, things can change, such as interest rate levels or bank products. Maintaining a healthy relationship with your mortgage provider could make it easy to take a top-up loan or request a better interest rate.