My name is David Rootsey and I'm the Branch Manager of the local Commonwealth Bank in Port Douglas.  I've been in Port now for just over four years and have seen the yearly cycle that this area experiences.

It happens on Macrossan St, it happens at Mossman Basketball , and it happens in all the coffee shops in the Shire. It gets noticeably quieter just before Christmas.

So it has come to that time of the year where, for many people in the Douglas region, work slows down and people start taking time to sit and review their financial situation. 

In anticipation for this time I have put together a few tips below that can help anyone save money on their home loan.

While many Australians spend time choosing the right home loan when they purchase a property, many home owners have a tendency to 'set and forget' once they move in. 

With this in mind, Commonwealth Bank has revealed its top tips for home owners to protect themselves from moving market forces and save money on their home loan.

According to James Sheffield, General Manager Mortgage Wealth at the Commonwealth Bank, there are a number of simple steps home owners can take to uncover cost savings on their home loan. Here's what he had to say:

"It's natural over the time of your home loan that the market and your individual circumstances will change, so it makes sense to review how your home loan is set up on a regular basis.

"For example, it can be as simple as paying fortnightly rather than monthly or making additional repayments when you can afford to.  By reviewing your home loan repayment strategy, you can potentially save hundreds or even thousands of dollars which will ultimately help you pay your home loan off sooner."

So here are my top tips to saving money on your home loan:

1. Make fortnightly or weekly repayments

With 26 fortnights every year, this is equivalent to making an extra month's payment each year, helping you to build equity in your home and pay off your loan sooner.

2. Make extra repayments.

Making larger or lump sum repayments which will not only build equity in your home, but also reduce your loan term and save on interest (check the terms and conditions of your loan regarding early repayment or lump sum payments).

3. Consider a split loan

If you are concerned about volatile interest rates, consider splitting your home loan (part fixed, part variable) while still enjoying the flexibility that a variable rate offers.

4. Use an offset account

Deposit your income and savings into an offset account, the money in your account is then offset against what you owe on your home loan, thus reducing the interest that you pay. 

What's more, an offset account is also a tax effective way to reduce you home loan as your interest paid on your savings is tax free!

5. Pay your salary or other income directly into your loan account

With a regular line of credit you can reduce your loan balance and build equity at the same time.

6. Avoid bank fees

Understand what fees you are being charged and why, and talk with your bank about what you can do to reduce them.

7. Align your loan repayments with when you are paid 

Set up your home loan repayments with the same regularity as when you get paid. By structuring repayments this way, you will always be in a position to maximise the amount of money paid against your home loan.

8. Manage your home loan online 

Not only do you have instant access to your loan details, but you can also mange your repayments.

I'll be back next month with more tips to help you get the most out of your finances.