Use your dividends wisely!

Don’t spend your dividends.

If you have any shares, rather than spending the dividends when they come in, why not set up a direct deposit for all your dividend payments to go directly into your home loan account. By having them deposited straight into your home loan account you will not be tempted to spend the money.

A $50 dividend payment could save you over $100 in interest over the term of your loan. Do that every year with all your dividend payments and who know how much you could save and because the money is never going into your regular transaction account you should never miss it!

This example is based an initial loan of $300,000 over 30 years at a rate of 7.5%. The savings are not exact and are designed to be nothing more than thought provoking. The scenarios are generic and do not take individual circumstances into account. You should seek independent financial advice before making any significant changes to your financial products.

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