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Review your existing loans: How would you spend the money?

existing loansWe’ve all played that game where you work out how you’d spend the money if you won lotto.
A holiday perhaps (although maybe not right now)?
A cleaner to make your life easier?
Maybe you’d purchase a new car?!

It’s a fun game to play, but generally ends in disappointment when your numbers don’t come up.

Whilst it’s not as exciting as the anticipation of a lotto win, there’s something else you can do to increase the amount of your bank balance.

Plus, if you say yes, you’ve got a much better chance of that number coming up! (You know, the one that sits next to the word cash balance when you log into internet banking?) 

Yep, you guessed it – it pays to look at your existing home loans.

With the right loan – from the right lender – you won’t spend more on your loan that you have to

This can create more disposable income for you to spend on the things you really want.

Or even better, use the savings you generate to get ahead on your loan. That way, you’ll be able to pay it off sooner to improve your financial security.

Here’s how we’ve helped clients recently to save money. It all starts with a simple home loan review…

 

>> Let’s just see how it compares <<

New clients came to us with an existing home loan of $620,000.

They set their loan up a few years ago to purchase a family home and were comfortably meeting the loan repayments. They were were ‘happy enough’ with their current lender but wanted to check they were still getting a good deal.

After conducting a thorough review of their personal situation, we found another lender who was offering a loan with similar features to what these clients already had – but at an interest rate 1.13% lower.

Even after considering the refinance costs and establishment fees involved with refinancing, in the first 3 years of switching their loan over, this couple had the potential to save $23,000 in interest costs.*

Yep, that was not a typo – $23,000.

 

>> Every little bit counts <<

Other clients came to us owing $17,000 of credit card debt. Whilst they were working really hard to pay it off by paying more than the minimum repayment each month, paying 20%+ interest was starting to hurt.

As part of a complete home loan review, we suggested they could refinance this debt to a lower interest rate. With no increase to their existing monthly repayments on this debt, by restructuring their existing home loan, we found a clear pathway to help this couple pay off their personal debt in only 17 months AND, and save $2,300 in interest in the process.

 

>> Where to from here? <<

Now, there’s generally three types of people who read this post.

The first is vast majority of homeowners who read the above examples and think, Mmmm, I should really get around to reviewing my loans. But then, they’ll do nothing about it.

We get it, life is busy.

The second is the group of homeowners who contact us to learn more about the home loan review process. But then, they’ll do nothing once they learn they need to provide some information to us upfront.

Again – we get it, life is busy. We also understand that homeowners who are comfortably meeting their repayments often can’t be bothered to go to the effort of changing things. Even when they know they’re paying more than they should. 

And if we haven’t described you already, you’ll be the homeowner who provides your financial information to us. You’re someone who wants to find out how much you can save, and then will actually create those savings by allowing us to help you with a refinance.

Human behaviour studies suggest that people are more likely to make an effort to avoid losing something rather than making an effort to gain something. The problem is, it’s likely you have no idea how much money you’re potentially losing by keeping your loans as they are….

That’s how we can help!

We think there’s a fair chance that if you *really* knew how much money you’re losing by staying in your current loan, you’d be open to doing something about it.

You can get started here.

 

 

*Please note interest savings we may be able to secure for you will vary, because they are dependent on your current financial situation. Whilst interest savings cannot be guaranteed, we will explore all loan structuring options for you to ascertain whether a more suitable loan/ loan structure exists. We will never suggest a refinance unless there is significant cost benefit to do so and there is no fee for our services.  

 

 

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