Mortgage and Debt

Here’s how we help:

• Work out how much you can borrow based on current financial capacity
  
• Simplify the home loan process by finding a home loan product that suits your needs for now, and in the future
  
• Negotiate better rates with over 25 lenders
  
• Remove the confusion and stress when finding the right lender – we guide you through the process and options so you don’t have to do it yourself
  
• Ensure you get the right structure in place (e.g., offset account)
  
• Organise your application and deal with the lenders including helping you sign loan documents and arrange settlement – we do the paperwork on your behalf!
  
• We also help review your spending patterns, financial commitments and debts, and where you can save money
  
• Most importantly, we help identify ways and provide strategies to pay off your home loan sooner
  
• Our Mortgage Broking service will not charge you a fee for our services. We work for you, but are paid by the banks.
  

CASE STUDY

The situation

It’s coming up to seven years since Tom and Julia took out their first home loan with one of the major banks. Switching and refinancing to a home loan with a lower interest rate will save Tom and Julia money and mean they will pay off the mortgage sooner. The other pro of refinancing the home loan is having additional money to renovate plus put some aside for emergency funds. Now with two children, they are desperate to expand the family home and put in a new kitchen and living area!

The mortgage Tom and Julia have on their first home loan is outdated with a high annual fee, high rates and no offset account. They also want to explore non-big 4 lenders as they don’t require branch access.

The loan

Through Tailor-Made Mortgages, Tom and Julia have refinanced to a new lender with a lower interest rate and multiple offset accounts. As “Barefoot Investor” fans, they can use the multiple offset accounts to store their ‘buckets’ such as spending, saving and emergency funds. They are also able to access the equity in their home to borrow up to 80% ‘cash out’ which they can use for renovations, emergency funds and to upgrade their car.

The outcome

Tom and Julia have saved over $458 per month by switching loans to a lower interest rate, and making higher and more frequent repayments. They have simplified their banking by storing their funds in their offset accounts and paying down the loan quicker. They are able to make smart money choices by allocating themselves a set weekly amount in their ‘spend’ account and are no longer using a credit card. They have savings goals in place for the first time and in control of their family budget.