Tag : payments

Loan Protection: Borrow Confidently.

Everyday life events can and may impact on your ability to meet your loan repayments. Making you aware of loan protection is my moral responsibility so you can make and informed decision. Its about making sure you can service your loan.

Protect what matters most to you

You owe it to yourself and your family to think about how you can protect your mortgage and your lifestyle. A Loan Protection Plan might be a good place to start if you’re worried about any of the following:

  • how you would repay your mortgage if you were to fall seriously ill or have an injury
  • what would happen to your family if you were seriously ill (or worse)
  • how much cover you might have elsewhere
  • you think you might be covered by your super (It’s estimated that life cover within super is on average only 20% of what is needed. The average insurance amount payable from super is $70,000 – for those who take the default level of cover)

Illness doesn’t discriminate

Here are some of the people that have been helped

Gender Age Reason for Claim Benefit Type Claim  Amount
Female 27 Cancer Living Benefit $102,465
Male 37 Heart Attack Living Benefit $66,836
Male 47 Cancer Terminal Illness $183,584
Female 59 Cancer Death and Terminal Illness $341,136

 

Once you have a home or a investment property, it may be one of your biggest financial assets. You’ve worked so hard to secure it, so it’s worth protecting.

 

If you would like to find out more or get a Loan Protection Plan put in place today and enjoy the first 30 days of cover for free, contact us now!

 

How To Pay Off Your Mortgage Faster

When was the last time you looked closely at your loan, the progress you are making on paying it off and how it compares to others in the market? Analysing your mortgage could mean savings for you, as well as the opportunity to pay it off more quickly, invest in other assets or reach financial freedom sooner.

Make smaller payments, more often

To cut the size of your payments, make more of them. This could even see you pay off your loan faster, and therefore pay less interest overall.

If you pay your mortgage monthly, consider changing to fortnightly repayments. For example, if your mortgage equates to $2400 a month, cut this in half and pay $1200 each fortnight. As well as having more manageable payments to make, by the end of the year you will have paid off $31,200 rather than $28,800.

Pay just a little bit extra

A minimum repayment is just that – for most loans there is no reason you can’t pay more, whether here and there or regularly.

By rounding up to a full number or contributing an extra $100 or even $10, you’ll significantly reduce your mortgage. It may also be worth considering putting all bonuses, tax returns and gifts into your mortgage.

Don’t decrease repayments when interest rates fall

Even if your repayments are lowered when fees and interest rates decrease, it doesn’t mean that’s all you have to pay and, by keeping your repayments at the same level when interest rates are lower, you will pay down more of the principle with each payment and make speedy progress on your loan.

Offset it

If you can, use an offset account. A mortgage offset account is linked to your loan and the interest payable on the loan from month to month is calculated by deducting what is in your offset account from your current loan. For example, if your mortgage is $500,000 and your offset account has $10,000 in it, you will only pay interest on the remaining $490,000.

An offset account will save interest while still giving you access to your savings. It also means investors can preserve the tax deductibility of the mortgage.

Find a better deal

Ultimately, your mortgage needs to suit you and your circumstances, or you will wind up paying too much. If you think your current loan no longer matches your situation, speak to us. We will be able to find the right product for you, as well as negotiating appropriate rates on it.

Of course, it is important to make sure that your lender doesn’t charge fees for extra repayments, refinancing, or any other steps you take in an attempt to save on your loan. We will be able to provide details and make sure you have a loan that lets you pay down your balance sooner.

If you want to pay off your mortgage faster, have a chat with us now, we have the expertise to make sure you aren’t paying too much and are in a loan that suits you.