The first tip starts here already: Remember that savings can be combined with any type of loan, without committing to anything.
Saving should always be
For practical reasons, saving should be done at a fixed load so that not everything boils away. Then the scheme can quickly become a failure instead. The cost of this model is that you do not get as high interest on the savings as you pay on the loan. But with added security and flexibility, it is often worth it. If you do not pay monthly, you can minimize the cost of using money market funds as a savings account or the best high-interest bank accounts.
Understanding the payment period
You probably understand now that choosing the longest possible repayment period on the loan means that you have a higher interest expense overall. The longer the repayment period, the more money you borrow over a longer period of time. However, a series loan repaid over 10 years can provide about the same total expense as an annuity loan repaid over a few fewer years. This way you can juggle the various loan types until you find the one that suits your situation. In conclusion, the correct repayment profile is what suits your disposable income. It is better to choose a longer repayment period than to let it go unnecessarily over your lifestyle today. Especially if disposable income will go up later. Then there will be too much bias in the quality of life between the phases of life.
It is also possible to choose the right to pay interest
It is really the same as extending the repayment period of the loan and can be very easy to do in certain periods. Most people who buy a new home in the first few years will incur additional costs for new furniture and renovation. The repayment period in the first 3-5 years of the loan may then be fine. Thus, you have a slightly easier repayment situation than if the repayments had started to run immediately. Repayment can also be okay in crisis situations.
If your income declines for a period of time, for example, due to short-term unemployment, you should immediately ensure that the bank gives you the right to deduct the interest. That way you only pay interest on the loan amount at any time. Paying off the loan is savings. It is pointless to save if you do not have the opportunity. This way, you may be able to get through the squat and keep the accommodation.