Switch and Save
Switch and save thousands if any of the three essential mortgage reduction components haven’t been set up correctly.
1. Interest rate
It is exciting to think that by paying an extra $200 per month off a $330,000 home loan you will reduce the amount of time it takes to pay the loan off by 11 years*. Find out if you can switch and save this amount so that it doesn’t affect your current cashflow.
2. Structure
Every dollar you earn needs to be working against your home loan. Having your income work directly against your home mortgage instead of in a savings account is imperative. Think of it as an investment with a guaranteed return (see the figures below).
| A savings account | V’s | Home loan saving |
|
Savings account rate example = 5% Tax on savings = 30% Annual return on income = 3.5% |
Home loan rate example = 7% Tax on savings = 0% Annual return on income = 7% |
This example represents a 100% better return on your money if your money is working against your mortgage as appose to being put in a savings account.
3. Other Peoples Money
If you like the idea of getting double
the return on your savings then you need to ensure that you collect as much money
as possible to work against your home for as long as possible. For example;
- Use the banks money to pay all your bills each month by using their credit card.
- Have all your business and investment turnover sit against your home.
- In addition to this get the government to pay all tax refunds to you in your pay during the year as appose to waiting until you do your tax return.
Call a Menzies Finance Consultant to start fast tracking your debt reduction today on 1300 88 48 32. Otherwise send through an Enquiry and you will be contacted within 24 hours.
Want a better deal on your mortgage? Talk to Menzies Financial Group today. We help Australians realise their dreams of owning their home sooner.
Here are just some of the ways we can
help you with your home loan:
- We take the time to understand all your needs with a free Financial Health Check before we talk home loans.
- If you’re client of ours, you have access to a free Home Loan Health Check whenever you want one.
- We know how important a good deal is to you, that’s why we search for the best deal for you. Save up to 0.70% p.a. on the standard variable rate.
- We know the banks that will waiver the monthly account fees on a transaction account if you have a Relationship Balance greater than $50,000.
- Would you like the time to locate a property with confidence with 6 month pre-approval (subject to conditions).
Our priority is to find a loan to match your needs, keeping it simple and taking the unknowns out of the home loan process.
Menzies Financial Group is one of the
most convenient services in Australia
To find out more about potentially saving thousands of dollars each year, phone 1300 88 48 32. Otherwise complete the Enquire Now Form and a representative will contact you to discuss your needs.
* based on a 7.3% interest rate over a 30 year term.