In Australia, the average person will borrow money and commit to more than a third of their annual income towards mortgage repayments. With so many variations on product choice and interest rate differences, it is more common now that people look for mortgage brokers who can search for home loans that suit them the most.
Searching for a home loan is becoming more and more complex, and certainly mortgage providers can enhance the chances of picking a home loan that suits your lifestyle. Because there are so many home loan products out there that it is often too late when you realise the home loan you took out should have been some other product.
So how do you determine what features you require to fit into what you are planning, especially in the future? A home loan should become something that will compliment what you wish to do now, AND in the future.
For example, what is the difference between a line of credit and a 100% offset home loan? Some will say the same, but the decision to take one over the other could potentially cost you hundreds, if not thousands to your bottom line. And how about this classic – fixed and variable home loan?
At Money Orchard, we take the mortgage selection process to a whole new level. The responsibility of providing a mortgage takes on a new meaning for us because we also factor in the possible tax deductibility into the equation, and the opportunity to structure your home loan to cope with our accelerated debt reduction strategy. So this means that if you like the idea of reducing your 30 year home loan to say, 8-12 years (this is a general time frame, but you need to consult our team to see if this will work for you) a traditional variable or fixed home loan will fall short of your expectations.
Then, we introduce the financial planning side of our team to construct an investment portfolio that will assist in leveraging the tax deductions and the power of compound earnings so that you will create another entity that can generate an income stream, in addition to your normal family income.
So if you think finding any mortgage provider will find you a great home loan is sufficient enough, let us take you on a whole new journey that will change the way you think, and explore so many new avenues that compliment our debt reduction and wealth creation – all at the same time!
Please read some of our existing client’s experiences and calculations that we were able to complete for them. You will not be disappointed because these are every day Mums and Dads, men and women like YOU! There is no need to be wealthy to implement what the wealthy use for wealth creation strategies.
Husband is earning $60,000, and wife is earning $55,000. They live in a simple home with $160,000 owing, and are considering buying into a much nicer home once they sell their investment property and make a $120,000 expected net profit. They are both 61 years old, and wonder if they are biting off more than they can chew because of their late stage in life, and they believe it is too late to buy their dream home.
In this scenario, we look at the couple borrowing $160,000 after they sell their current property AND their investment property, giving them a chance to buy a $450,000 home.
They could also consider buying a more expensive home, say $550,000, and rely on their superannuation for retirement rather than the building up of their investment portfolio.
Ages 34 and 33 with no children. They bought their first home a few years ago and had $160,000 owing. They are now starting to think about starting a family but want to reduce their debt a little more. They are both employed earning $50,000 each. They wanted to know what options were available before they start their own family.