In the face of rising living costs and interest rates, Irish households are being urged to take control of their finances in 2024 by following three steps, with potential savings of over €10,000 annually.
From switching mortgages to claiming tax refunds and shopping around for life assurance, Martina Hennessy of doddl.ie says these simple strategies can offer practical ways for individuals and families to navigate the challenging economic landscape.
1. Mortgage Switching: save up to €7,000 annually
The average salary in Ireland, standing at €44,202 in 2023, has struggled to keep pace with a 5.1% surge in the cost of goods and services.
With mortgage interest rates rising by over 1.75% in the past year and over 50,000 mortgage holders set to roll out of fixed rates, the financial strain on home owners is intensifying.
“The solution lies in mortgage switching, a strategy that could save households thousands on what is often people’s largest financial commitment,” says Hennessy.
“With a 3.3% difference between the highest and lowest rates, a €300,000 mortgage could see a difference of €592 per month, or over €7,000 annually, by choosing the right product.
“Despite the complexity of mortgages, switching can be simplified with the help of brokers, who can provide market-based advice and guidance throughout the process. Taking just ten minutes to review your mortgage terms could result in saving you a substantial amount of money.”
2. Tax Refunds: claim what’s yours with average refunds of €1,880
Tax credits and allowances often go unclaimed, benefiting revenue and not the taxpayer. The average tax refund through Taxback.com is €1,880.
Unclaimed credits include medical expense relief, rent tax credit, remote working relief, marriage relief, third level tuition fees relief, and flat rate expenses.
“By identifying and claiming these credits, taxpayers can significantly boost their income,” says Hennessy.
“For instance many married couples are entitled to tax relief in the year after they get married, yet this relief often goes unclaimed.”
3. Life Assurance: Shop Around for Savings of up to €1,300
“Mortgage holders are required to have life cover and often overlook the potential for savings in their mortgage protection policies,” says Hennessy.
“Many mortgage holders pay higher premiums by opting for policies offered by banks, which provide quotes from a single provider.”
Shopping around for life assurance can yield substantial savings. For example, on a €300,000 mortgage over a 25-year term, two applicants aged 35 years, non-smokers, could save €1,305 over the policy term by selecting the lowest premium available.
For more information on mortgage switching and life assurance, visit www.doddl.ie
