How to pay off your house sooner
Who doesn’t want to pay off their home loan as quickly as possible?
With a little extra investment each year, you can save years off the length of your home loan and save thousands of dollars.
These 6 steps can offer a solid starting point for paying down that debt:
1) Pay more than the minimum
When you pay just the minimum on your loan, most of your repayments in the first few years simply go to paying off interest. Paying just a little extra can help you start bringing your loan balance down right now, potentially saving you years off your mortgage.
2) Make fortnightly payments
One of the simplest things to do to paying your loan off faster is to switch from monthly to fortnightly or weekly repayments as this means making an extra months payment during the course of the year.
3) Making the most of the windfalls
Tax refunds, bonuses and other unexpected income can be made the most of by investing some or all into your mortgage – it can make a huge different in the future.
4) Mortgage discounts
Much like your local café loyalty cards, if you’re a member of certain organisations (mostly professional) you may be entitled to home loan discounts with certain providers. It doesn’t hurt to ask your lender!
5) Reviewing your bank and interest rate
We all know interest rates are at all time lows. When was the last time you reviewed your loans? You can either take advantage of lower repayments to boost your spending or keep your repayments above the minimum and pay off your loan faster instead. It could save you thousands of dollars.
6) Get it right before you begin
If you haven’t purchased your property yet, now is the time to review what you can afford and the best loan to suit your situation. There are many tools online including mortgage calculators so you can make the best decisions possible.
Paying off your home loan is a great way to free up extra cash for other priorities in life as a long term goal that creates a better lifestyle for you and your family long term.
Your action plan
We work with our clients to develop a strategy for regular health checks on their loans which can include better interest rates, better deals, different products that better suit where they’re at now and what they want to achieve.
Contact our specialist team for a FREE review of your current loans and advice on whether you would benefit from a refinance strategy!
What does it really cost to buy your first home?
Buying your first home is an exciting step in your property journey, but it can be a daunting one.
According to financial home loan surveys, four out of five future first homebuyers don’t feel well informed about the property purchase process.
One of the main concerned to get informed about is the costs, it’s not just the property you need to pay for.
On top of your deposit, here are 8 costs every first home buyer needs to be informed of:
1. Home loan application fees
When you get a home loan, it’s likely you will have to pay an application or loan establishment fee. The cost of this fee varies on the lender you go with and can be as much as $1,000.
2. Lenders Mortgage Insurance (LMI)
Lenders Mortgage Insurance (LMI) insures your lender against any loss incurred if you default on your home loan and is needed on all home loans when you borrow 80 per cent or more of the property value.
3. Stamp duty
Stamp Duty is a state government tax .It’s usually the largest cost and is based on the purchase price of the property and paid prior to the settlement. As a first home buyer, you could be entitled to stamp duty concessions, but these vary from state to state.
4. Mortgage registration fee
As a first home buyer, you will need to pay an admin charge by the Land Titles Office. This fee is charged for registering the mortgage on to the certificate of title for the property. The fee differs depending on your state from $85 to $125 per registration.
5. Legal or settlement fees
Your solicitor or settlement agent will charge you a fee to carry out the legal work on the property transaction. Be sure to ask about the costs of searches, settlements and disbursements which could be extra.
6. Pest / building inspections
You will be advised to arrange pest and building inspections by qualified inspectors before exchanging contracts. These inspections will ensure the property is not affected by insect infestations and it is structurally sound and is building regulation compliant.
It is usually a condition of the loan settlement that your lender will require all security properties are covered under a building insurance policy.
8. Other costs
There are some other ‘hidden’ costs that you should be aware of when purchasing your first property including:
- Moving costs
- Home and contents insurance
- Council rates and strata fees
Before buying, it’s wise to work these additional costs into your budget, so you know what to expect and know how much you can spend on your first home.
Is it your time to become a first home buyer?
Our wealth creation and finance specialists will sit down and go through each step of the process in a simple and easy to understand manner presenting you with options.
Why People Struggle in Retirement?
Recent research has found that 95% of working Australians are not financially prepared for a comfortable retirement and a significate number continue to delay planning for life after work. There is usually a gap in what they envisage for their retirement and what the reality is.
Around 87% will be dependent on welfare so if the pension age is increased to 70, many of us will need to consider working longer to have an income and build more retirement savings.
Think you’re too young to start worrying about retirement? Decisions you make now regarding life style and financial choices will make your retirement what you want down the track.
Whether it consists of golf club memberships, living in your dream home or luxury holidays, here’s our top tips to ensure you’re retirement ready:
Think about retirement when you think about saving
It really does pay to start thinking about your retirement when you save today.
Although in Australia if you’re employed a percentage of your income is paid to prepare for this, it’s not always enough for your future needs. The more of your income you set aside for retirement, the easier it’ll be to retire comfortably. By saving early you can ensure your retirement benefits from the value of compound interest.
Have a plan
When it comes to retirement most people don’t have a plan or retirement strategy. The success of this plan is the cumulative effect of the small steps and decisions you make each day.
By evaluating this plan, you may need to adjust your lifestyle choices of today to make it a realistic one. Living a champagne lifestyle today may get you a beer budget come retirement.
What age will you retire?
Do you know how many years your retirement savings need to provide enough income for? These days it can be safe to assume that many of us will live to the age of 90 or beyond.
With many of us wanting to retire in our 60’s, there is usually a big difference in the age people say they want to retire to when they actually do.
Insurance is important
Taking out insurance to protect your retirement plan is an important part of your strategy.. There are many types of insurance that should be considered include life insurance, health insurance and long-term care and can make the difference between a comfortable retirement or financial stress and worry.
The exciting part of getting ready for retirement
When transitioning from work life to retirement, we work less and play more. It’s more than just money we’ll need, but the reality is all retirement dreams need money — to a degree. Thinking about things like relationships, health and a life that engages your interest and fulfils you can help you save more.
Once your financial goals are in place and your retirement plan filled with motivating interests, you’re find yourself one step closer to a comfortable retirement in all areas!
Want to retire earlier? Do you know how much you need?
If you need assistance is creating a retirement plan and strategy, contact one of our wealth creation specialists today. They can help you create what you really want; a financially secure future, a retirement to look forward to and to enjoy life’s luxuries along the way.