Home loans and home buying advice – Mortgage Choice #figure #mortgage #payment

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Home buying advice

With tax time fast approaching, now is the perfect time to review your current financial situation and make sure you are in the best possible position for your needs.

Tax time also provides us with the perfect time to make changes to our financial situation in order to improve it.

Generally speaking, there are three easy things all homeowners can do to improve their financial position.

Firstly, you can start overpaying on your mortgage. With interest rates sitting at historical lows, now is the perfect time to contribute additional funds to a mortgage.

Contributing an additional $100 a month can not only help you to save thousands of dollars in interest over the life of your loan, but it can significantly slash your loan period. Even one-off extra repayments can make a significant difference to the length and overall cost of your home loan.

In addition to overpaying your mortgage where possible, making salary sacrificed super contributions offers a simple way to save on tax and build wealth.

Salary scarified super contributions allows you to pay part of your before-tax salary into your super rather than taking the money as cash in hand. These contributions are taxed at 15%, which is likely to be below your marginal tax rate (which could be as high as 46.5%).

Finally, given that your income is your biggest asset, it makes sense to protect it. While the majority of superannuation funds offer some level of income protection cover, this cover is often not adequate.

It is important to do your due diligence and make sure whatever income protection insurance you currently have is adequate. If it isn’t, it is vital you do something about it, before it is too late.

In the same way that it is important for you to properly insure your vehicle in the event that unforeseen circumstances arise, it is also vital to properly insure your income.

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About Mortgage Choice

Established in 1992 by brothers Rod and Peter Higgins, Mortgage Choice was founded with the aim to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.

Since that time, we have grown and developed into a fully fledged financial services provider, and our founding principle remains very much at the heart of what we do.

Over 20 years of industry experience has taught us that you want advice you can trust and understand, from experts who have your best interest at heart. We now have the ability to deliver this across various financial products, including home loans, financial planning, car loans, personal loans, commercial loans, asset finance, deposit bonds, as well as risk and general insurance.

The information provided in this website is for general education purposes only and does not constitute specialist advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.

*Note: the home loan with the lowest current interest rate is not necessarily the most suitable for your circumstances, you may not qualify for that particular product, and not all products are available in all states and territories.

#The comparison rate provided is based on a loan amount of $150,000 and a term of 25 years. Warning: This Comparison Rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.

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