Its a good idea to review and refinance your home loan

A mortgage is most likely the largest investment you will make, so you should regularly assess your home loan and see if refinancing can provide you with additional benefits. #refinance #homeloan #Creditcarddebt #mortgage#interestrate #broker #investment
Refinancing is when you switch your mortgage to another lender. There can be multiple benefits to refinancing.
1. To cash out home equity
Refinancing your home loan can be a great way to access home equity so that you can invest in another property. This is called ‘gearing’. Alternatively, you can use your equity to renovate, for home improvements or any other worthwhile purpose.
2. To consolidate debt
Rather than carrying personal loans or credit card debts at high rates, you should consider consolidating them into your home loan so you can pay off your debt at the lower rate. This enables you to pay the debt off faster and potentially save thousands of dollars in interest payments providing you maintain you repayments at current levels.
Madhu and her team can help refinance your home. Discuss on 0425 341 086.

Here are our expert tips for a brighter New Year

1) Max out your Super contributions and take advantage of the annual limits #Planning #MoneyMatters #HomeLoan#20172018

2) Dump do-nothing credit cards in favor of New Year specials like 0% interest rates, travel points and cash back opportunities. #CreditCard #NewYear #2018

3) Be prepared for whatever: Set aside one month’s salary for emergencies.

4) Reward yourself: Use the credit card points you’re racking up to buy something just for you.

5) Partner up: An experienced Financial Planner can do wonders for your finances. Making good decisions all year long is easier with the right planner.

Contact Madhu on 0425 341 086 or loans@financeandmortgage.com.au to plan your finances in the coming new year.

Do you carry good debt or bad debt

Everyone carries debt these days, be it a car loan, credit card debt or a mortgage. Good debt typically provides a greater return on investment than the interest being charged and tends to fit well within your bigger financial picture. #Mortgage #HomeLoan #GoodDebt #BadDebt

Home Mortgage is meant to be a good debt, because it allows you to leverage a home of greater worth than you can hope to save for and buy.

Similarly, a mortgage could be considered good debt because it benefits your family while a car loan may be necessary to provide transportation to and from work. A mortgage is considered a long term asset. A car loan must be carefully analysed to balance your needs and wants. You might want a sports car but realistically a family SUV might be more practical and economical.

You could also argue that a student loan is good debt because higher education is an investment in your earning power.

But there is a catch. When payments on good debt become unmanageable, they start to feel like bad debt — and it could rapidly become an ugly situation for you. For instance, student loan payments on a degree that didn’t boost your income, or mortgage or car payments that eat up too much of your take home salary, can rapidly lead you to rely on credit or loans to cover day-to-day expenses. Credit card debt tend to spiral out of control because of the higher interest rates.

The bottom line: Good debt only stays that way if it is part of a well-thought-out financial plan. Otherwise, you may be turning something that’s meant to be good into something that ends up being bad for your budget.

Call Madhu on 0425 341 086 to discuss your ideas and views.