Saving you Money
There are a number of simple ways to potentially
save yourself thousands of dollars when entering into a new
mortgage. Review these simple steps below.
The
Loan
The most important thing when applying for
a new loan, is to make sure you choose the right product for
your circumstances.
There are hundreds of different products
to choose from out there, provided by a wide selection of
lenders. Choosing the wrong product can mean paying thousands
of dollars worth of extra repayments over the life of the
loan, or big exit fees if you choose to pay your loan out
early. Do you go for a full featured product, or a lower interest
rate basic product?
Your IMC consultant can help you to make
the right choice.
Negative
Gearing
When you purchase an investment property,
any money you receive from rent is considered as income and
tax must be paid on it. However, the interest portions of
your investment loan repayments become tax deductable, allowing
you to claim a portion of these tax payments back.
There are also a number of other ways in
which you can make tax deductions on an investment property.
Talk to your accountant or financial planner to find out more
about these.
Extra
Repayments
By making ongoing extra repayments, or even
the occassional balloon payment, it is possible to cut years
off your loan and save thousands of dollars in interest.
For example; on a $250,000 loan, if you
paid only $150 extra per month you would save over 4 years
and $47,000 in total interest.
Another simple and easy way to pay your
loan of more quickly is to choose fortnightly repayments.
Fortnightly repayments are calculated by dividing the monthly
repayments by two. However, because there are 26 fortnights
per years compared to 24 half-months, you are effectively
making an extra months repayment per year.
Credit
Cards
As you probably well know, credit cards
can be expensive things, with their high interest rates and
fees. Something that is well worth considering (other than
chopping them up for good) is to refinance them as part of
your loan.
This will immediately save you money in
the form of interest charges, as you will be paying for them
at home loans rates instead of exhorbitant credit card rates.
Alternatively, if you want to keep some sort of credit facility,
you may be able to apply for a Line-of-Credit product. Once
again the interest calculation will be based on a much lower
interest rate.
Also, some lenders will offer fee free credit
cards with certain products, saving you money in account keeping
fees and transaction costs.
Refinancing
Have you ever considered refinancing your
existing loan?
Many people now-days will look to refinance
their existing loans every 3 - 5 years. Lenders will often
have special products on offer, or introductory rates that
can add up to a considerable savings. Or you may just wish
to take advantage of the economic climate at the time.
People can sometimes get locked into a fixed
rate at a high interest rate, or want to get the best fixed
rate when interest rates are looking to rise. It is sometimes
even worth paying associated break costs to be able to enter
into a new loan product much more suitable to your current
needs.
Talk to one of our consultants to find out
if refinancing would be beneficial for you.
Time
is Money & Freedom
When searching for a loan, people will often
spend weeks in interviews with various banks and lenders,
and end up out of pocket in doing so. Why do this when the
answer is under one roof?
The easiest solution is to have a consultant
from Independent Mortgage Consulting contact you. We are able
to meet with you at a time and place of your choosing, and
at no cost to yourself.
That way you will have all that spare time
to get on with what you enjoy, and let us do the work for
you.
Simply fill in our finance
enquiry to have a consultant contact you.
