Insights · Page 36 of 40 · FinancialPlus Mortgage Broker Gold Coast

Pay Your Loan off faster with an Offset Account

How good is an offset account? In simple terms, an offset account is a bank account that is attached to a home loan. However, instead of earning interest on your funds which may then be subject to tax, the funds are taken into account when calculating the interest that is due on the home loan. For example, if you have a $240,000 mortgage and have funds in your offset account of $12,000, then interest will only be calculated on the balance of $228,000. There are two different types of offset accounts – the 100% offset account and the partial

No one wanted our business

We both love the work that we do and get so much satisfaction out of seeing a loan settle as it means that someone’s dreams have been achieved – regardless of whether it is a first home buyer, a property investor or someone looking for an increase or to refinance but it is so nice to get feedback like we did from Scott & Wendy recently. Hi Bruce and Kathy. Thanks very much for the e-mail etc and thank you both for the hard work you guys put in to get this across the line for us when all looked

Don't just focus on the interest rate

It can be very tempting when you find an interest rate that is less than what you are paying on your existing home loan or an interest rate that looks so much lower than what another lender is offering but you need to beware. All that glitters is not necessarily gold. A common marketing tool used by lenders is to display an introductory rate that is well below the normal rate but this comes at a cost. One lender currently offers the following rates: 5.54% 5.74% 5.34% 6.14% 5.13% 5.24% There’s no question about which interest rate looks the most

Don't make the classic refinancing blunder

One of the dangers when people look at refinancing because they need to consolidate some debts is that they may end up paying for an asset such as a car well beyond the life of that asset. As an example, if the debt consolidation is to replace a personal loan for a car that has a likely life span of say 5 years, then the last thing that you want to do is end up paying for that car for the next thirty years but this is what will happen if you are refinancing for debt consolidation purposes and do

Look beyond the Fixed Rate Period

Everybody loves cheap interest rates and there are some very good fixed rates available from time to time. These look very attractive but it is just as important to look beyond the fixed rate period to see what will happen once you come off the fixed rate. This is called the revert rate but varies incredibly from one lender to the next as can be seen from the following table. We compare three lenders – two with a Fixed Rate of 4.94% for a 3 year period and one with a Fixed Rate slightly higher at 4.99% but have a

Maximise your renovation potential

A smart renovation can add thousands to your property if you set a solid plan from the outset. Renovating is a national pastime – just one look at a TV guide and the plethora of shows dedicated to renovating will instantly highlight this. The process of turning an old house into a new one is engrained in the Australian culture. But while renovating a property can add significant value, there are numerous issues that need to be considered before you start knocking down walls or ripping up carpet. As well as making your home more liveable, the number one driver for renovating a property should be to add

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