How redraw and offset accounts can save you money!

Home loan offset accounts and redraw facilities work in similar ways; they both allow you to reduce the balance of your home loan, and therefore the interest charged, by applying extra money to your debt. Redraw A redraw facility allows you to access extra repayments that you may have made on your mortgage. How does this save you money?  By depositing extra money into your home loan, you are reducing the amount of interest charged to your loan as your loan balance is reducing. If you had this money sitting in a savings account you would be earning interest (and possibly paying tax on it) and the interest rate is generally at a lower rate than the interest rate on your home loan. For example, if your home loan interest rate is 4% and your savings account is earning interest...

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Six tips for property investors at tax time!

Tax time is approaching again! Was that a groan? We understand. If you’re like most property investors, trawling through receipt upon receipt to tally up your allowable deductions is probably not your idea of fun. So, as tax time looms we wanted to share our pre-tax time checklist to help make things just a bit easier for you. Organise your receipts and records It’s time to dust it off that shoebox of receipts and get your paperwork in order. If you discover the ink on some of the receipts has faded, keep in mind that you can use a bank statement as evidence of when the purchase occurred. It’s a good idea to sort the expenses into various categories, such as strata levies, rates and water charges, property management, and maintenance and repairs. Creating a spreadsheet or using an expense...

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Is one phone call really all it takes to secure a lower interest rate?

With official interest rates at a record low, shrewd mortgage holders may take the opportunity to call their lender to ask for a better deal. But when even a small interest rate reduction means potential savings of thousands of dollars, is a simple phone call really enough to get you there? In 2020, your interest rate should have a two in front of it if you are a homeowner. But while some lenders offer lower rates to new customers, it is not always so simple for existing customers to secure the same outcome. If you want a better deal on your mortgage, there are basically two options: 1. Call your bank and ask them to match the new rate, or 2. Contact your broker and vote with your feet. Although the first option is commonly recommended, lenders are not always...

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The impact of COVID-19 on lending to consumers and businesses!

There is so much uncertainty throughout the world right now with the impact of COVID-19 pandemic.  Central banks around the world, including the Reserve Bank of Australia (RBA), are rapidly taking action to help financially support people through the economic impact.  Major and second-tier banks have been announcing new measures to help customers who are struggling to make repayments during this difficult time.  These new measures are changing and evolving daily as the impact of the pandemic continues. The Council of Financial Regulators (CFR) – which includes, the RBA, Treasury, the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investment Commission (ASIC) – issued a statement on the 16th March 2020.  The CFR stressed that regulators are working closely with the federal government to help ensure that Australia’s financial markets “continue to operate effectively and that credit is available...

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Broken-hearted by your home loan?

Is your home loan making you feel broken-hearted? Is your home loan provider loyal to you?   Loyalty is an admirable quality in any relationship. But is your devotion to your home loan provider justified?  It’s important to review your home loan from time to time. We’re here to check the interest rate, review it's features and make sure it’s still giving you everything you need and desire. Here are some tell-tale signs that it may be time to part ways with your current lender and start afresh with someone new. Your home loan is getting old Without suggesting you go on ‘Home Loan Tinder’ and start ogling a new lender every week, we have to say the days of staying with the same one for 30 years are long gone. If you’ve had your home loan for more than two...

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Are you credit fit?

Credit in Australia is changing due to the Banking Royal Commission, changes to lending practices and the introduction of Comprehensive Credit Reporting. It is more important than ever to know how credit fit you are before applying for a home loan, personal loan, or anything credit related. If you have ever completed a half or full marathon, you would know that you had to prepare for the event months in advance.  You would have a fitness plan leading up to the event so that you knew you could complete the marathon within a certain time frame.  Obtaining a home loan also requires preparation and planning, particularly if it is your first home purchase. Below is your six-step plan to ensure you are credit fit. 1. Understand your credit score Comprehensive Credit reporting (also known as Positive Credit Reporting) came into...

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Smart ways to manage your Christmas debts!

Did your Christmas spending get out of hand this year? You are not alone! According to a recent news report our 2018 Christmas spending binge is expected to leave us with a $29.7 billion credit card debt – that’s equivalent to $1,863 per credit card! The good news is that as a mortgage and finance broker I don’t just organise home loans – I am also a fully qualified credit advisor. If you need help to get your debts under control, here’s some info that may help. What is debt consolidation? Pay day loans, credit cards, store cards and credit facilities like after-pay accounts often carry high interest rates that can eat up your income and make it difficult to pay off the debt. Debt consolidation is a way of potentially reducing the amount of interest you pay, making your debts...

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5 Reasons to buy a home during the summer holidays!

Everyone looks forward to Christmas and the summer holiday season. After all, 'tis the season to be jolly.  To indulge in festive fare.  To get out in the great outdoors and enjoy quality time with family and friends.  But it could also be the right time to buy a home.  Here are 5 reasons why clever property buyers are considering making a purchase after Christmas during the holiday season. Motivated Sellers Spring is one of the busiest times of year in Australia's property markets.  That's when all the buyers are out in force and vendors have the best chance of getting their price.  If a vendor is still trying to sell come summer, they're often highly motivated - or even desperate - to get a sold sticker on that notice board. This year, spring auction clearance rates were lower than they've...

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A Step-by-Step Guide to Investing in Property

When done right, investing in property can help you to build long-term wealth, and who doesn’t like the idea of an additional income stream? (Imagine what you could do with that!). The really great thing about property investing is that just about anyone can understand the principals. If you’re thinking about building wealth for your future this way, here’s a step-by-step guide on how to go about it. We’ve kept it super simple and you’re bound to have questions, so please give us a call at Wyze Finance to find out how we can help you make it work! Step 1: Talk to us about your borrowing power The first step involves a friendly chat with us about the finance set-up. We’ll run through your personal financial circumstances and help you determine your borrowing power - which is the amount...

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How refinancing can help you save money!

When it comes to smart money management, the key to success is to regularly assess your financial position - and that includes taking a good hard look at your mortgage. Here’s why a home loan health check every three years may help you save, and why you should check in with us today to ensure your home loan is still the right choice for you. Refinancing may help you to: Secure a more competitive interest rate Checking your home loan regularly gives you peace of mind that you’re getting the most competitive interest rate and that your financial needs are being met. With RBA rate movements, lender rate changes and new loan products coming onto the market all the time, it’s quite likely there’s a better option available if you’ve had your home loan for a while. Access better features...

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