How to Build Wealth by Refinancing Your Home Loan

2019-06-28T11:28:05+10:00

A third way that refinancing can help is that you may be able to substantially increase your long-term wealth. There are two extremely important concepts involved in this strategy that I will briefly outline: Compounding interest Salary sacrificing into superannuation I have previously discussed compound interest at length and how it is a Golden Rule [...]

How to Build Wealth by Refinancing Your Home Loan 2019-06-28T11:28:05+10:00

Refinance Your Mortgage to Own Your Home Sooner

2019-04-26T02:10:06+10:00

Did you know the first few years of your home loan repayments are just paying off the interest?  You are barely reducing the balance.  However, refinancing can tip the scales in your favour. The reason for this is that a home loan operates like compounding interest in reverse.  To understand what this means and why [...]

Refinance Your Mortgage to Own Your Home Sooner 2019-04-26T02:10:06+10:00

Refinance Your Home Loan: A Pay Rise to Live Life

2019-04-26T02:09:19+10:00

If your boss offered you a $4,224 pay rise today would you refuse it? If you retain a home loan with an noncompetitive interest rate then you are actually knocking back an easy pay rise.  A simple refinance may help you free up some cash flow and live life.  Let me show you how. Refinancing [...]

Refinance Your Home Loan: A Pay Rise to Live Life 2019-04-26T02:09:19+10:00

How Much Can I (AFFORD to) Borrow?

2019-04-26T02:08:38+10:00

It's easy to get carried away when planning for your first home.  The general practice is to hop onto a bank calculator to determine your maximum borrowing capacity.  Armed with that figure you might start searching one of the online real-estate websites or visit some house and land display villages. This is actually a [...]

How Much Can I (AFFORD to) Borrow? 2019-04-26T02:08:38+10:00

Debt Consolidation – Credit Cards and Personal Loans

2019-06-06T05:56:27+10:00

Usually private debt has a higher interest rate because the debt isn’t secured against an asset.  For example, your credit card debt has no asset ‘securing it’ that a lender can sell should you default on the debt. Car loans are cheaper than credit cards because there generally is an asset ‘securing’ the loan [...]

Debt Consolidation – Credit Cards and Personal Loans 2019-06-06T05:56:27+10:00

How Much Does Debt Actually Cost You?

2019-04-26T02:06:26+10:00

For anyone that pays tax, there is a big difference between the price of non-deductible debt and the price of deductible debt.  It is vitally important to understand the differences and how they can affect your efforts to eliminate bad debt and create wealth. Think of the two types of debt as outlined in the [...]

How Much Does Debt Actually Cost You? 2019-04-26T02:06:26+10:00

Refinancing: Longer Loans Save a Bit But Cost a Lot

2019-04-26T02:07:05+10:00

Probably the second biggest mistake I see people make when refinancing their home loan is being talked into the maximum term by their broker or bank manager.  The reasoning is sound – it will lower their repayments.  But what about the long-term consequences?  Well, they aren’t so great. Basically you will end up paying more [...]

Refinancing: Longer Loans Save a Bit But Cost a Lot 2019-04-26T02:07:05+10:00

Broker Commissions Increase Your Repayments & Interest

2019-04-26T02:00:58+10:00

Probably the most common mistake to avoid when refinancing (or even getting your first loan) is not getting the commissions from the actual loan paid back to you.  Or taking it one step further, it is taking a loan that pays the highest commissions to the person that sourced it for you. This is the [...]

Broker Commissions Increase Your Repayments & Interest 2019-04-26T02:00:58+10:00

How to Compare Comparison Rates

2019-04-26T02:01:48+10:00

Have you ever looked at an advertised loan rate and gotten really excited about the low interest rate?  But then noticed another rate called the 'comparison rate' which appears quite higher?  Does this confuse you about the cost of loan?  A comparison rate should make things easier rather than more difficult but that isn't always [...]

How to Compare Comparison Rates 2019-04-26T02:01:48+10:00

APRA’s investment loan changes – still great rates to be had

2018-07-10T09:29:30+10:00

The Australian Prudential Regulation Authority (APRA) recently issued a directive to the banks to tighten up investment lending. Responsible for upholding standards of trade in the financial industry, APRA had become concerned about the number of people entering the investment lending space and the sustainability of this sector given current economic circumstances. That is, activity [...]

APRA’s investment loan changes – still great rates to be had 2018-07-10T09:29:30+10:00