Home Budgeting

Home Loan / Mortgages

There are so many mortgage products on the market in Australia. I am not going to tell you about them all but I will tell you where to find them.

In an ideal world though, you would have a mortgage with a really competative interest rate, 100% mortgage offset account & combined (free) transaction account, free redraw and the ability to make extra repayments whenever you like, internet banking & ATM card. Then there is the Fixed Vs Variable argument. The reason I like fixed rates is that with a young family to support, there is NO uncertainty surrounding interest rates. For us, our repayments will not change until 2011. Further to this a mortgage offset is a great way to get ahead. The savings you make on your mortgage are generally well above what you would get in a true savings account. Try finding a savings account that pays 9%. Trust me, you won't!!! On top of this, the saving you make with your money in the offset account is that it is TAX FREE. Even if you did find a savings account paying 9%, you would pay tax on the money you earnt.

Now, what about interest rates. Do we fix, do we stay on variable? Well, I am not going to get into that argument other than to say, I've heard so many people both give and receive all sorts of advice. The best bit of advice was this. "Anyone who tries to tell you which way interest rates are going to go is kidding themselves". That doesn't really help you does it? But it's the truth. Well firstly consider my comment above about a fixed rate. Some people also choose to split their loan. Some fixed and some variable. Finally, on interest rates, do not settle for what a lender can do for you, even the big banks. Tell them you are not happy and that you will happily take your business elsewhere. Here is a great story from only 1 week ago...mid April! A colleague has his home loan with a major lender. A very major lender. Which bank? Yes that's right, "Which bank". He managed to get a 1% discount on his standard variable loan. This is a massive saving. Consider everyone jumping up and down about a 0.25% interest rate rise. Yet he scored a 1% discount for the cost of making a phone call. If you want to know the details, please ask me...I'd be happy to let you in on a secret that could save you thousands and thousands of dollars in interest.

Mortgages in Australia typically last around 5-7 years. After this time alot of people refinance with another company. So if your mortgage is becoming a little stale and you don't have an offset account for example, it's time to shop around and GET YOURSELF A BETTER DEAL. Any financial advisor will tell you that the 1st real priority is to pay off the mortgage. The better the deal you get the more money you save and the quicker you'll pay it off. It's time to at least try for a better deal, it could save you alot of money! Click now and take a few minutes to see if you'll be better off elsewhere. It will cost you only your time!

Click here now to see if you can get a better deal - it will COST YOU NOTHING.