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Advanced Strategies to Pay-Off Your Mortgage Sooner

Parental Gurantee

Owning a home is a significant milestone, but the journey doesn’t end with just acquiring property. The next big step is to pay off your mortgage, and the sooner you can do that, the better. Not only does it bring a sense of accomplishment, but it also means financial freedom and peace of mind. If you’re looking for advanced strategies to pay off your mortgage faster, you’re in the right place.

Understanding Your Mortgage

Mortgages might initially seem complex, but at their core, they’re straightforward, revolving around essential elements: the principal amount, the interest rate, and the loan term. Understanding the mechanics of your monthly payments, particularly how much is allocated to the principal versus interest, is vital. This knowledge empowers you to formulate effective strategies on how to pay off your mortgage faster, ultimately reducing the total interest paid over the life of the loan.

Refinancing Your Mortgage

One of the most effective strategies to pay off your mortgage sooner is refinancing. By refinancing, you might secure a lower interest rate, which can lead to shorter loan terms and faster payoff. However, it’s essential to consider the costs associated with refinancing and ensure that the savings outweigh the expenses. 

Making Extra Payments

Every dollar counts when it comes to mortgages. Consider making bi-weekly payments instead of monthly ones. This simple change means you’ll make 26 half-payments or 13 full payments in a year, essentially making an extra payment annually. Additionally, rounding up your payments, even by a small amount, can shave off months or even years from your loan term.

Optimal Use of Windfalls and Bonuses

Have you recently received a tax refund or a bonus at work? Rather than succumbing to the temptation to splurge, consider a more financially prudent approach by utilizing these windfalls in the best way to pay off your mortgage. Making a substantial lump-sum payment towards your mortgage can have a profound impact, effectively diminishing your principal balance, and thereby minimizing the long-term interest burden.

Cutting Expenses and Budgeting

Reviewing and optimizing your expenses is a crucial step towards achieving financial stability and securing a brighter future. By identifying areas where you can cut back and making conscious choices, you can free up resources to improve your financial situation.

Analyzing Your Monthly Expenses 

Tracking Your Spending: Begin by meticulously tracking your monthly expenses. This includes bills, groceries, entertainment, and any other outlays. Use financial apps or spreadsheets to streamline this process.

Categorizing Expenses: Categorize your expenses into essential (e.g., housing, utilities, groceries) and non-essential (e.g., dining out, entertainment, subscription services). This helps you distinguish where you have flexibility.

Identifying Patterns: Look for patterns in your spending. Are there areas where you consistently overspend? Identifying these can be a first step in reducing costs.

Cutting Back on Non-Essential Expenses

Dining Out Less: Consider cooking more meals at home and reducing the frequency of dining out. This not only saves money but also allows for healthier eating habits.

Cable Cord Cutting: Explore alternatives to expensive cable TV packages, such as streaming services or digital antennas. You can often get the same content at a fraction of the cost.

Subscription Services: Evaluate your subscription services. Are there any that you can do without or replace with more affordable alternatives?

Avoiding Potential Pitfalls 

While making extra payments, ensure they go towards the principal amount. Some lenders might apply them to the interest first, so it’s crucial to specify. Also, be aware of any prepayment penalties and always read the fine print of your mortgage agreement.

The Role of Mortgage Brokers 

A mortgage broker can be an invaluable resource in your journey to pay off your mortgage sooner. They can provide personalized strategies, insights, and even help you find opportunities for better rates or terms. Regular check-ins with a broker can keep you on the right track.

In conclusion, the dream of paying off your mortgage early is achievable with the right strategies and mindset. Every step you take towards this goal brings you closer to financial freedom and peace of mind.

Frequently Asked Questions

What are the benefits of paying off my mortgage sooner?

Paying off your mortgage earlier can save you thousands in interest, improve your credit score, and provide peace of mind by eliminating a significant monthly expense.

How can refinancing help in paying off my mortgage faster?

Refinancing can allow you to secure a lower interest rate, which means more of your payment goes towards the principal. Additionally, if you refinance to a shorter-term loan, you’ll pay it off quicker.

How does increasing my monthly payment impact my mortgage term?

By increasing your monthly payment, even slightly, you’ll be paying more towards the principal, which can significantly reduce the overall term of your mortgage.

Are there any penalties for paying off my mortgage early?

Some mortgages have prepayment penalties. It’s essential to check your mortgage agreement or consult with your lender before making extra payments.

Is it a good idea to allocate bonuses or tax refunds towards my mortgage?

Yes, using unexpected income sources like bonuses or tax refunds can be an excellent way to make additional payments on your mortgage without impacting your monthly budget.

How does setting a payoff date goal help in mortgage repayment?

Setting a specific payoff date can motivate you to stay disciplined in your repayment strategy and make necessary adjustments to meet that goal.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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Why Home Loan Turnaround Times Are About to Blow Out Further

Parental Gurantee

One of the biggest mortgage challenges that bubbled up during COVID-19 was the blowout in banks’ turn-around times. While most lenders were previously able to process and approve loans in several days to a couple of weeks, many of their processing times blew out to weeks and weeks – and for some banks, the turnaround time stretched on for months.

That bad news? These challenges are set to continue. With so many banks’ putting an end to pre-approvals, it’s putting extra pressure on other lenders, who can’t keep up with the demand. 

As mortgage brokers, we do our best to help our clients navigate these choppy times, but it can be really volatile. We put a home loan deal forward to a bank recently and after submitting, this particular bank stopped taking applications, because they are at capacity in terms of being able to process loans.

Even though we submitted the deal before they announced this temporary cut off, they have refused to assess the deal. This is obviously really frustrating for the borrower, but it also makes us look really unprofessional in front of our client.

Add to this the fact that many banks have support staff based in India, in the grips of a harrowing COVID-19 outbreak, and it’s causing extra delays and dramas across the industry. 

Frequently Asked Questions

Why are home loan turnaround times expected to increase further?

The home loan turnaround times are expected to increase further due to the ongoing impacts of the COVID-19 pandemic, increased loan applications, and the extensive verification processes lenders are implementing to ensure borrowers can service their loans.

How has the COVID-19 pandemic affected home loan processing times?

The COVID-19 pandemic has led to a surge in home loan applications due to low-interest rates, causing a backlog in processing. Additionally, lenders are exercising more caution, implementing extensive verification processes to assess borrowers’ ability to service loans, contributing to longer turnaround times.

What are lenders focusing on during the home loan application process?

Lenders are focusing on extensive verification processes to assess borrowers’ financial stability and ability to service loans. They are scrutinizing income, expenses, employment stability, and existing debts to ensure that borrowers can manage repayments even if circumstances change.

How can prospective homebuyers prepare for longer home loan turnaround times?

Prospective homebuyers can prepare by maintaining a stable employment history, having a clear understanding of their financial situation, reducing existing debts, and ensuring all required documentation is accurate and readily available to avoid any delays in the application process.

Are there any strategies to expedite the home loan application process?

Yes, having a clear understanding of your financial situation, maintaining a stable employment history, reducing existing debts, and ensuring all required documentation is accurate and readily available can help in expediting the home loan application process. Additionally, working with experienced mortgage brokers like Zippy Financial can provide guidance and support throughout the application process.

How does Zippy Financial assist clients in navigating through extended home loan turnaround times?

Zippy Financial assists clients by providing expert advice and guidance throughout the home loan application process. They help clients understand their financial situation, prepare necessary documentation, and liaise with lenders to ensure a smooth and efficient application process, mitigating the impacts of extended turnaround times.

We are dealing with an environment that is constantly changing, and if we, who are in the industry are finding it confusing and challenging, I can only imagine how borrowers feel! If you are concerned about your home loan, need advice or you are having trouble working out your next steps, we are on hand to help as much as possible. Contact our team of experienced brokers today on 1300 855 022 for a chat about how we can help you move forward.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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How to Save $500+ Per Month

There is no denying that times are tough right now, and everyone Australia-wide is carefully weighing up every spending decision. To help you save money on household bills and perhaps start building a “rainy day” account to see you through the months ahead.

4 Steps You Can Take to Get on Top of Your Finances

1. Look at Your Spending Habits

If you don’t already have a budget, then it is a good idea to create one. The most effective way to get in control of your money is to find a budget spreadsheet and go through your last year’s bank statements to look at your spending.

This can be a real eye-opener! Many of us don’t realise how much money we unconsciously spend on coffees, drinks, eating out and shopping.

Look at your bank and credit card statements can really show you where you can cut back if needed. At Zippy, we can provide you with a simple and easy to follow budget spreadsheet if you would like one.

Potential savings: $100 – $1,000+ per month

2. Shop Around for Better Deals

You have probably heard this advice before, but perhaps didn’t have the time to action it. Well, now we have all the time in the world – so we can shop around for the best possible deals on our household bills.

You can either negotiate with your current providers or shop around for a better deal – there are plenty of them out there at the moment.

Picking up the phone is often the most direct way to get a result, but many call centres are over-loaded right now, so sending an email or making contact via their website might be your best bet. You may be able to negotiate a better deal on:

  • Electricity and gas – ask what discounts they have for direct debits or paying on time
  • Phone and internet packages
  • Pay TV subscriptions, i.e. Foxtel
  • Mobile phone contracts
  • House and contents and/or car insurance
  • Health insurance – do you need extras right now?

If your income hasn’t been affected by COVID-19, then the next piece of this puzzle is to bank any savings, where possible. For instance, if you save $100 per month by cancelling your extras cover on your health insurance, set up a direct debit to transfer $100 per month from your pay cheque to a savings account.

This way, you won’t fritter the money away – and you can start building a rainy day fund.

Potential savings: $100 – $1,000+ per month

3. Do You have a Car Loan, Personal Loan or Other Debts?

If you have a mortgage, now is the ideal time to refinance to bundle your loans together and reduce your monthly repayments.

As well as the potential to save a small fortune on mortgage interest, due to the lower interest rates on offer at the moment, you may also want to combine all of your other debts into your home loan. You will then have just one repayment each month, instead of juggling multiple debts – and you will be paying far less interest too.

Let’s say your current mortgage repayment is $1,800 per month. You also have a car repayment of $600 per month (interest rate 6%) and a personal loan of $200 per month (interest rate 10%), bringing your total outgoings to $2,600 per month.

If you have equity in your home, you may be able to refinance bundle all of these loans into your home loan. This means you will pay a lower mortgage interest rate of between 2.2% and 3.5% on all of these debts – down from 20% on credit cards – and you will reduce your monthly repayment.

Potential savings: $100 – $1,000 per month

4. Streamline Your Superannuation

If you have had more than one job over the years, there’s a decent chance you have more than one superannuation account. If this is the case, you are unnecessarily paying double (or triple – or more!) the fees and charges you need to be paying.

Now, you might be thinking: it is only a few hundred dollars a year. What does that matter? When you consider the power of compound interest, you realise it matters quite a lot. Just $250 today could be worth almost $5,000 in 30 years’ time, based on an average 10% return. Multiply this figure by multiple funds and multiple years, and you are needlessly robbing yourself blind.

When I discussed this with one of my borrowing clients, we discovered he had 8 separate superannuation funds! I was able to link him up with a financial planner, who worked with him to roll all of his money into one suitable superannuation funds. Even with isolation practices in place, you can meet with a financial planner over Zoom or Skype to get on top of your finances. Zippy Financial can recommend some experienced, reputable financial planners should you be looking for one.

Potential savings: $250+ now; thousands of dollars in future wealth

Frequently Asked Questions

What is the importance of creating a budget?

Creating a budget is crucial for understanding your spending habits. By going through your bank statements, you can identify areas where you might be spending unnecessarily and can cut back.

How can shopping around for better deals help me save money?

Shopping around for better deals on your household bills like electricity, gas, and insurance can help you save a significant amount of money each month. You can either negotiate with your current providers or switch to new ones offering better deals.

What should I do if I have multiple debts like a car loan and a personal loan?

If you have multiple debts, consider refinancing to bundle your loans together. This can reduce your monthly repayments and the interest you pay.

How can streamlining my superannuation accounts benefit me?

If you have multiple superannuation accounts, you’re likely paying extra fees. Consolidating them into a single account can save you money now and increase your future wealth due to the power of compound interest.

What should I do with the money I save?

If your income hasn’t been affected by financial downturns, consider banking any savings you make from these strategies. This can help you build a “rainy day” fund for future needs.

How can Zippy Financial assist me in saving money?

Zippy Financial offers expert assistance to guide you towards a brighter financial future. They can help you save money on household bills and navigate challenging financial times with confidence.

Give Us a Call

Take control of your finances today and let Zippy Financial guide you towards a brighter financial future. With expert assistance, you can save money on household bills, build a ‘rainy day’ account, and navigate these challenging times with confidence.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

RELATED ARTICLES 

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Australian Homeownership Soars: Escaping Rental Struggles

Homeownership

Despite the soaring costs of living and successive interest rate hikes, homebuying intentions have climbed, as shown by the latest data. So why are so many people still chasing the great Australian dream? And what can you do to make your own dream a reality

Despite a flurry of rate rises, new data shows home ownership is again a top priority for many Australians, with the number of house hunters increasing.

Commonwealth Bank’s Household Spending Intentions Index showed a strong 14.4% increase in homebuying intentions in May, after dropping in April. May also saw new home sales increase across Australia for the second month in a row.

So, what’s driving this appetite for property when finances are increasingly tight for many? And how can you boost your own chances of cracking the market sooner?

Rental Squeeze   

Across capital cities and major regional areas, there have been historic rental price increases and low vacancies.

Rental vacancies reached an all-time low of 1.1% in April, with the median price for renting a unit only $39 a week cheaper than renting a house. Rising overseas migration has contributed to stiff competition in the rental space too. In the March quarter, there was a 124% jump in rental enquiries year from one overseas country alone. 

Understandably, many are looking to escape renting and grab their spot on the property market. But with rate hikes and inflation, saving a deposit is no easy task for many Australians.

Here are some ways to take the pressure off.

Schemes and Grants to Save Time and Money

There are many government schemes and grants designed to help you get into the market, and all can be used simultaneously, which can really bring in savings! 

Through the National Housing Finance and Investment Corporation, the federal government has three low deposit, no lenders mortgage insurance (LMI) schemes available for eligible first-home buyers, regional first-home buyers and single parents.

The First Home Guarantee and Regional First Home Guarantee support eligible buyers to purchase a home with a 5% deposit. And the Family Home Guarantee assists eligible single parents to buy with a 2% deposit.

By not paying LMI, you can save anywhere between $4,000 and $35,000, depending on the property price and your deposit amount, which can fast-track your first home-buying goal by four and five years. 

Another home-buying cost that can have a real sting in its tail is stamp duty.  

Fortunately for first-home buyers though, state governments have stamp duty concessions available, including South Australia, which announced that it was scraping the tax for first home-buyers on new homes valued up to $650,000. 

Meanwhile, Victoria, New South Wales, Queensland, Western Australia, Tasmania, the ACT, and the Northern Territory also offer stamp duty concessions. If eligible, this can either eliminate or reduce the cost of stamp duty.

Most state governments also offer first homeowner grants to help you get the keys to your own home.

Victoria, New South Wales, Queensland, Western Australia, Tasmania, Northern Territory and South Australia all offer first homeowner grants. If eligible, you could receive a grant of between $10,000 and $30,000 depending on your state and other eligible criteria.

Frequently Asked Questions

Why is homeownership soaring despite the rising costs of living?

Despite the increasing costs of living and interest rate hikes, the number of people looking to buy homes has risen. The article suggests that the desire to escape the struggles of renting and the availability of government schemes and grants are driving this trend.

What challenges are renters facing that make them consider buying a home?

Renters are experiencing historic rental price increases and low vacancies in capital cities and major regional areas. These challenges are pushing many to consider buying their own homes.

How can government schemes and grants help potential homebuyers?

Government schemes and grants can significantly help potential homebuyers by saving them time and money. For example, not paying LMI (Lender’s Mortgage Insurance) can save between $4,000 and $35,000, depending on the property price and deposit amount. This can fast-track the home-buying process by four to five years.

What is the role of stamp duty in the home-buying process?

Stamp duty is another cost that potential homebuyers need to consider. However, state governments offer stamp duty concessions for first-home buyers, which can make the process more affordable.

How can Zippy Financial help me in the home-buying process?

Zippy Financial can help you understand your borrowing power, loan options, and eligibility for various schemes and grants. They can guide you through the entire process, making it easier for you to buy your dream home.

Give Us a Call

It is important to note that spots for some of these schemes are limited. And they are popular, so it’s best to get in quick. 

If you’d like to kick renting to the curb, get in touch with us today. We will help you work out your borrowing power, and your loan options, and factor in what schemes you may be eligible for.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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It Pays for Financial Planners and Brokers to Work Together

Financial Planners

Recently, I sat across from a client who had a casual $2 million sitting in his bank account. That’s right – two million dollars, just languishing in an ordinary bank account, not achieving very much. 

He wasn’t investing in the stock market. He wasn’t contributing extra to his super. And the only property he owned was the home he and his family were living in. 

Can you imagine? He had $2 million just sitting in the bank; that is known as dead money. With interest rates in the toilet and so many better options out there he could be using to grow his wealth, this seemed like such a wasted opportunity to me.

He may as well have had it stuffed underneath his mattress!

Of course, I knew that I had to get him in front of a great financial planner, pronto. 

Optimizing Financial Success: When Planners and Brokers Team Up

This is something that comes up quite a lot for me as a finance broker. I’m not qualified or certified to give money advice, so in these situations, I always refer my clients to a reputable financial planner. 

As a broker, all my clients require adequate TPD and income protection insurance, and most of them have no idea how to get it, what products are available or why they even need it in the first place. 

So, virtually every borrower I meet needs the aide of a financial planner to navigate this. Not to mention those clients whose expenses are holding back their borrowing power, or those who have no clue how to best structure their finances to take advantage of tax breaks and other incentives. 

If I can refer these clients to a planner I know and trust to take care of these needs, not only does that planner benefit from a new client, but I’m also able to offer a greater variety of products to the client and possibly write them a larger loan.

It’s a win for the client, who moves towards a better financial position as a result of the advice, and a win for the financial advisor, who builds new business… which is why it blows my mind that more financial planners and brokers don’t collaborate. The benefits for all parties involved can be huge!

Accordingly, for planners, taking on new clients means loads of information gathering as you get to grips with the state of their finances and their short and long-term goals. In the process, of course, you will tally up their current debt and how this will factor in your planning. 

This is the ideal opportunity to hand over to a broker, who can help with refinancing said debt at a more attractive rate, or recommending a product with inclusions that will better fit their goals. When they arrive back at your office with more manageable monthly debt repayments and the spare cash that’s been freed up through refinancing, they’ll be better able to implement your suggestions and the financial planner can take care of their insurance needs.

In my mind, a savvy planner is one who looks for debt first, as this is an area where substantial savings can be made without any real changes to the clients’ lifestyle or goals. Clients are more willing and able to commit to these painless adjustments than they might be to a strict budget, and if they’re happier, they’ll refer more friends, family and colleagues to the professionals who have helped them.

The cross-collaboration opportunities don’t stop there. In our increasingly online environment, working together allows financial planners and brokers to boost our social media engagement, grow our LinkedIn presence, and get more visits on our websites – all of which can lead towards more enquiries, more referrals, and more clients.

It’s essentially free advertising. For instance, I might share and promote a great blog written by a planner colleague of mine, and in turn, he’ll do the same with my most recent article. We’ll comment on each other’s updates and congratulate each other on accolades and awards, like my recent Broker of the Year and Customer Service of the Year wins at the Momentum Media Australia Business Awards. All of this serves to build our reputations and credibility in the eyes of potential and existing clients.

And all the while, we are increasing our online visibility and driving more and more traffic, enquiries and commissions.

What do you think? Are you a planner who can see the value in collaborating with an experienced broker – or perhaps you’re a broker who never realised just how complementary the two professions are? If so, maybe it’s time to start hitting up your connections and see where it takes you both.

Frequently Asked Questions

Why is it beneficial for financial planners and brokers to collaborate?

Financial planners and brokers can mutually benefit from collaboration. Planners can refer clients to brokers for loan products and refinancing, while brokers can refer clients to planners for financial advice and insurance needs. This creates a win-win situation for both professionals and the client.

What are the advantages for clients when financial planners and brokers work together?

Clients benefit from a more comprehensive financial strategy. They can receive advice on insurance, tax breaks, and other financial products, while also getting help with loan products and refinancing options. This holistic approach helps clients optimize their financial situation.

How does collaboration between financial planners and brokers affect their online presence?

Collaboration can boost both professionals’ online visibility. They can share and promote each other’s content on social media platforms, thereby increasing traffic, enquiries, and commissions. This essentially acts as free advertising for both parties.

What is the role of a financial planner in this collaboration?

The financial planner gathers information about the client’s financial state and goals. They can then refer the client to a broker for refinancing existing debt at more attractive rates, which frees up cash for implementing the planner’s suggestions.

What is the role of a broker in this collaboration?

The broker can offer a variety of loan products to the client, possibly writing them a larger loan based on the financial planner’s advice. They can also help with refinancing existing debts, enabling the client to better implement the financial planner’s suggestions.

How can clients find a financial planner and broker who collaborate?

Clients can contact Zippy Financial for a comprehensive financial service that includes both planning and brokering. This ensures that they don’t miss out on any opportunities to optimize their financial situation.

Contact Us

Don’t miss this golden opportunity! Contact Zippy Financial today and let us cater to your financial needs. Don’t let your money go to waste – take action now and unlock the potential of your wealth!

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

RELATED ARTICLES 

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Unlocking Freedom: Refinancing Options for Mortgage Relief 

Borrowers have had a steady stream of grim monthly reminders from their lenders advising that their mortgage repayments are increasing… again.

With so many rate rises, some borrowers are now stuck in a so-called mortgage prison. This happens when you are unable to refinance to a cheaper interest rate on your home loan with another lender because rate rises mean your borrowing power and loan serviceability has decreased, so you are unlikely to be approved if you apply anywhere else. And you are paying sky-high repayments, which may be higher than you’d pay with a different bank.

If You Are Stuck in Mortgage Prison, What Can You Do About It? 

If you find yourself in a position where you are unable to refinance to a cheaper lender, there may be a few things you can do about it.

First, look at your overall debts. Personal loans and credit cards can seriously impact your borrowing power and loan serviceability because the banks see them as an ongoing obligation that eats away at your financial safety net. They also consider your full credit limit as debt, not just the balance you have outstanding.

So, if you have $30,000 in credit card limits but zero dollars owing, your lender will assess that as a $30,000 debt and allocate 304% of that debt limit ($900 to $1,200) as a monthly repayment. Therefore, cancelling any credit cards you don’t need, or substantially reducing the limit, can make a big difference towards getting you out of mortgage prison.

This is one strategy that we recommend to help get into a stronger financial position when applying for finance. 

There are other ways to help manage the situation too, including the following. 

Expert Tips to Negotiate with Your Current Lender

Phone the Bank

Call them and ask to speak to the retention team. These are the people in customer service whose job it is to keep customers with the bank, so they can look at your loan and see if there is any ability to reduce the rate paid. 

What Are New Customers Getting?

Ask what rate new customers are getting and how does it compare to your rate. If it is lower, is there a reason you are being penalised and can you access the same rate?

Ask for Other Savings 

If they cannot reduce your interest rate, is there anything else they can do to help manage your mortgage? For example, a mortgage repayment holiday, switching temporarily to interest-only payments, fee waivers or discounts on insurance premiums on credit card annual fees. 

This all requires some time and effort, and you do not always know what question to ask or what options you have. Working with a mortgage broker can help you manage your mortgage and add value to this tricky business of refinancing.

Frequently Asked Questions

What is Mortgage Prison?

Mortgage prison refers to the situation where borrowers are unable to refinance to a cheaper interest rate with another lender due to rate rises affecting their borrowing power and loan serviceability.

How Do Credit Cards and Personal Loans Affect My Ability to Refinance?

Credit cards and personal loans can impact your borrowing power because banks consider them as an ongoing obligation. Even if you owe zero dollars on a credit card with a $30,000 limit, the bank will assess that as a $30,000 debt.

What Can I Do If I’m Stuck in Mortgage Prison?

If you find yourself unable to refinance, you can look at your overall debts and consider reducing or canceling credit cards you don’t need. This can improve your financial position and potentially allow you to refinance.

How Can I Negotiate with My Current Lender?

You can call your bank and ask to speak to the retention team, who are responsible for keeping customers. They can look at your loan and see if there’s any ability to reduce the rate you’re paying.

What Other Savings Can I Ask For?

If your lender can’t reduce your interest rate, you can ask for other ways to manage your mortgage, such as a repayment holiday, switching to interest-only payments, or fee waivers.

Can a Mortgage Broker Help Me?

Yes, a mortgage broker can help you manage your mortgage and create a strategy that could allow you to refinance in the future. They can also help you negotiate with your current lender.

Get in Touch 

If you are stuck in mortgage prison and you have explored these options to no avail, a mortgage broker may be able to create a strategy and a roadmap that could allow you to finance in 6 to 12 months’ time.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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Opportunities for First Home Buyers Amid Rising Property Prices

property prices

In an era where property prices are continuously on the rise, navigating the real estate market has become increasingly challenging, especially for first-time homebuyers. This article explores the current landscape of property prices in Australia and offers strategic insights for those looking to make their first foray into property investment and homeownership.

Understanding the Market Dynamics

The surge in property prices is influenced by a variety of factors, including economic growth, interest rates, and market demand. In Australia, the property market has seen significant growth, making it daunting for first-time buyers to find affordable options. Understanding these dynamics is crucial in making informed decisions.

Government Support and Incentives

To assist first-time buyers, the Australian government has introduced several schemes, such as the First Home Guarantee. These initiatives aim to make homeownership more accessible by offering financial support and incentives. It’s important for potential buyers to stay updated on these opportunities and understand how they can benefit from them.

Alternative Strategies for Homebuyers

With property prices soaring, considering alternative strategies becomes essential. One approach is exploring more affordable regions or suburbs, where property prices may be more within reach. This shift can open up new possibilities for homebuyers who are willing to look beyond their initial preferences.

Financial Planning and Mortgage Considerations

Effective financial planning is key in the context of rising property prices. Prospective buyers should focus on securing favorable mortgage terms and understanding the long-term implications of their financial commitments. Seeking pre-approval for a mortgage can also provide a clearer picture of what is financially feasible.

Securing Favorable Mortgage Terms

  • Creditworthiness and Interest Rates: Prioritize improving your creditworthiness to secure more favorable interest rates. A higher credit score often translates to lower interest rates on your home loan. Regularly monitor your credit report, address any discrepancies, and take steps to enhance your credit profile before applying for a mortgage.
  • Down Payment Strategies: Strategize your down payment approach. While a 20% down payment is a common benchmark, explore options that align with your financial circumstances. Down payment assistance programs, government-backed loans, and other creative approaches can provide flexibility in meeting down payment requirements.
  • Professional Mortgage Advice: Engage with mortgage brokers and financial advisors for professional guidance. Mortgage brokers can help you navigate the myriad of loan options, negotiate with lenders, and secure competitive terms. Financial advisors contribute by aligning your mortgage decisions with broader financial goals.

The Strategic Role of Pre-Approval

  • Clarity on Financial Feasibility: Seeking pre-approval for a mortgage is a strategic step in gaining clarity on what is financially feasible. It involves a thorough assessment of your financial background by a lender, providing you with a clear picture of the loan amount you qualify for. This knowledge empowers you to narrow down your property search within your budget.
  • Enhanced Negotiation Power: Pre-approval enhances your negotiation power. Sellers often prioritize offers from buyers with pre-approved financing, as it indicates a serious intent and the ability to secure the necessary funds. This can be a decisive factor in competitive real estate markets.
  • Streamlining the Home-Buying Process: The pre-approval process streamlines the overall home-buying process. With a pre-approved mortgage, you can move quickly when you find the right property, potentially gaining a competitive edge over other buyers who may still be in the early stages of securing financing.

Proactive Adaptation to Market Dynamics

  • Monitoring Interest Rate Trends: Stay vigilant about interest rate trends. With rising property prices, even slight changes in interest rates can impact affordability. Regularly monitor market conditions and consider locking in your interest rate when it aligns with your financial objectives.
  • Flexibility in Home Search: Maintain flexibility in your home search. Be open to exploring different neighborhoods, property types, and sizes to find options that align with your budget. Flexibility allows you to adapt to market dynamics and make well-informed decisions.
  • Regular Financial Check-ins: Conduct regular financial check-ins, especially in the context of rising property prices. Assess your financial goals, review your budget, and adjust your financial plan as needed. Regular evaluations empower you to proactively adapt to changing market conditions.

Long-Term Investment Perspective

Despite the current high property prices, real estate remains a valuable long-term investment. The market’s historical trend of growth suggests that investing in property can yield significant returns over time. Therefore, buyers should consider the long-term benefits of entering the market now, despite the high entry costs.

The rise in property prices in Australia presents both challenges and opportunities for first-time homebuyers. By staying informed, exploring government incentives, considering alternative locations, and planning finances carefully, prospective buyers can navigate these challenges successfully. The key is to approach the market with a strategic mindset and a long-term investment perspective.

Frequently Asked Questions

What are the current trends in property prices in Australia?

Property prices in Australia have been on a steady rise, influenced by factors like economic growth and market demand.

How can first-time homebuyers navigate the rising property prices?

First-time homebuyers can navigate rising prices by staying informed, exploring government incentives, considering alternative locations, and planning their finances carefully.

What government schemes are available to assist first-time homebuyers in Australia?

The Australian government offers several schemes, such as the First Home Guarantee, to make homeownership more accessible for first-time buyers.

Is it a good idea to look for properties in more affordable regions?

Yes, exploring more affordable regions or suburbs can be a strategic move for homebuyers facing high property prices in their preferred areas.

How can first-time buyers stay updated on opportunities and market changes?

Staying in touch with real estate experts, financial advisors, and regularly following market news and updates can help buyers stay informed.

What alternative strategies can be considered apart from buying in different locations?

Other strategies include looking into different types of properties, considering joint ownership, or exploring rent-to-own options.

Can first-time homebuyers benefit from consulting with financial advisors or real estate experts?

Yes, consulting with financial advisors or real estate experts can provide personalized advice and guidance, helping buyers make the most of the current market conditions.

Get in touch

Looking for financial solutions amidst rising property prices? Contact Zippy Financial today to explore support schemes and overcome the challenges faced by first home buyers.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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Are You Considering Refinancing Your Mortgage?

Is your home loan not up to scratch? Are you looking for a better rate? Do you want to unlock equity? Then refinancing could be for you, but there are some important questions to ask first.

If you are considering refinancing your mortgage, you are not alone. With the rising cost of living and interest rates hitting the hip pockets of many Australians, it is a popular move. According to ABS data, November 2022 saw refinancing values reach a record high of $13.4 billion.

Refinancing may offer you opportunities to unlock equity, land a better rate and avoid what is known as “loyalty tax.” Sticking to the same loan could see you missing out on favourable rates and features that lenders like to use to use to gain new customers. Or maybe you are about to come off a fixed loan period and are bracing for a potential rate hike.

Whatever the reasons for refinancing, we have some questions you help you through the process.

What Is Your Financial Picture?

Banks want to look at your financial profile before lending you money, so check that your credit score is healthy to avoid disappointment.

Look at your budget to see how much you can afford to pay towards a mortgage. Include interest, repayments, and service fees, and factor in possible additional refinancing costs such as application and valuation fees. You can also consider how the length of your loan impacts you budget.

A longer-term loan usually comes with lower repayments but more interest over the lifetime of your loan. A shorter-term loan on the other hand would usually mean you make higher repayments now, but you could save on total interest payments.

Whichever way are you are leaning, we can help you crunch the numbers. 

Do You Have Equity?

Having 20% equity in your home is typically a lender requirement when refinancing. But what is equity? 

It is the difference between the market value of your property and the balance of your mortgage. With the recent decline in property values, it is an important thing to check. 

The 20% equity typically acts as a deposit. Not having 20% may mean you have to pay lenders’ mortgage insurance, which may make refinancing not worth it. And negative equity, when your mortgage balance exceeds your property’s value, would most likely put the brakes on any refinancing plans. But if you have additional equity, you may be able to unlock it when refinancing. 

Here is an example. Say your house is now worth $1 million, but you bought it for $800,000 a few years back with a $600,000 loan that you have paid down to $500,000. Banks will typically allow a loan for 80% of a property’s market value (depending on your financial position and other factors). So, if you refinanced your $500,000 loan to an $800,000 loan, you could unlock $300,000 for things like renovation projects or investments. 

What Are You Looking For?

Now it is time to think about what you want from a loan.

A better interest rate is usually at the top of the list, but what other features could benefit you? An offset account may be something you want to reduce interest, or the ability to make additional repayments without incurring penalties.

Depending on what you are after, you may not need to move to another lender. We can always talk to your current lender first to see if they will offer something better. If not, then we can explore other options.

Frequently Asked Questions

Why is refinancing a popular option?

Refinancing has gained popularity due to the rising cost of living and fluctuating interest rates. According to ABS data, refinancing values reached a record high of $13.4 billion in November 2022.

What is “loyalty tax” and how can refinancing help avoid it?

Loyalty tax refers to the disadvantage you may face by sticking to the same loan for an extended period. By refinancing, you can take advantage of better rates and features that lenders offer to attract new customers.

What factors should I consider before refinancing?

Before refinancing, you should check your credit score and budget to see how much you can afford in mortgage repayments. Also, consider any additional costs like application and valuation fees.

How does equity play a role in refinancing?

Having at least 20% equity in your home is typically a lender requirement for refinancing. Equity is the difference between the market value of your property and the balance of your mortgage.

What loan features should I look for when refinancing?

Apart from a better interest rate, you may also want features like an offset account or the ability to make additional repayments without penalties.

Can I negotiate with my current lender before switching?

Yes, it’s always a good idea to talk to your current lender to see if they can offer a better deal before deciding to switch to another lender.

Get in touch

Do you want to refinance to unlock a better interest rate, features and benefits or equity in your home? Then give us a call. We can help assess your situation to see what is possible and locate loans and lenders that would be a great fit for you.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

RELATED ARTICLES 

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First Home Buyer Numbers Have Halved Is It Time To Swoop In?

Repeated cash rate hikes have put many first home buyer plans on hold, so could you swoop in and reap the benefits with less competition in the market?

From May to December the RBA lifted the cash rate from 0.10% to 3.10%. This has no doubt hit many mortgage holders hard, but it has also pumped the brakes in the number of first home buyers looking to enter the property market.

Current Australian Bureau of Statistics data shows that the number of first home buyers has fallen from 3.2% to 8,576 in October alone. That is almost half the 16,187 first home buyers who entered the market in January 2021.

So, if you are looking to buy, how can this benefit you?

Less Competition and More Bargaining Power

From mid 2020 to end of 2021, we saw a house buying frenzy. And house hunters who were unable to compete had to make do with the leftovers. But fewer buyers on the market means that there is less of a chance you will have to duke it out for a chosen property. There could also be more favourable homes for you to choose form, without the overcrowded open houses. 

With fewer buyers making offers, sellers could have concerns about offloading their property. 

CoreLogic data from November 2022 shows the median days a property sits on the market is 35 days, compared to 20 days in 2021. 

So, if you have your financial ducks in a row and are prepared to negotiate, flex that bargaining power and try for a great price.

Softening Property Prices

High demand in recent years saw property reach eye-watering prices, but over the past three months, there has been a decline around most parts of the country (except for regional South Australia and regional Western Australia). 

National data has shown the biggest annual decline in home values since 2019, with a 3.2% drop over the past year. 

In some instances, it could be cheaper to buy than rent. National median weekly rental prices rose by 4.3% in September 2022, which is a record-breaking price hike. And a recent analysis found that for 518 Australian suburbs, home loan payments were more affordable than renting.

Escaping the rent crunch and buying your first home in an opportune area could be a smooth move if your finances are in a decent shape. And you might want to get the ball rolling sooner rather than later. That is because prices could go up again as early as next year if the RBA pauses rate rises and inflation drops, according to SQM Research’s Housing Boom and Bust Report for 2023

Government Schemes for Savings

Taking advantage of the government incentives puts the keys in first home buyers hands on average 4 to 4.5 years quicker.

Giving lenders mortgage insurance the big swerve, paired with a low deposit of 5% is an enticing deal. And if you are eligible, that is what the government’s First Home Guarantee can offer. Spots are limited and have historically been snapped up quickly. But with fewer first home buyers entering the market, you may have more of a chance of nabbing a spot in this scheme. 

Frequently Asked Questions

Why have the numbers of first home buyers decreased recently?

The number of first home buyers has decreased due to repeated cash rate hikes by the Reserve Bank of Australia (RBA). From May to December, the RBA lifted the cash rate from 0.10% to 3.10%, making it more challenging for first-time buyers to enter the market.

How does the decrease in first home buyers benefit potential buyers?

The decrease in first home buyers means less competition in the property market. This gives potential buyers more bargaining power and a better chance to negotiate favorable prices.

What has been the impact on property prices?

Property prices have softened in most parts of the country over the past three months, except for regional South Australia and regional Western Australia.

Is it cheaper to buy than to rent now?

National median weekly rental prices rose by 4.3% in September 2022, making it potentially cheaper to buy than rent in some areas.

Are there any government schemes to help first home buyers?

Yes, the government’s First Home Guarantee can offer mortgage insurance waivers and low deposits of 5% to eligible first home buyers.

What should I do if I’m ready to buy a home?

If you’re ready to buy, it’s advisable to consult with a mortgage broker to understand your borrowing capacity and mortgage options. This will help you make an informed decision and potentially get a better deal.

Find out more

If you are ready to make the big leap towards home ownership, then give us a call. We have got the know-how to help you work out your borrowing capacity and your mortgage options. We will take the confusion out of financing your new home, so that you can get on with swooping in on the house of your dreams.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).    

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.  

RELATED ARTICLES 

Service Locations

There is no denying that 2022 was a tough year for many mortgage holders with eight interest rate rises since the start of May, and unfortunately 2023 is tipped to bring out more rate increases. But kicking off the year with a few tweaks to your budget and habits you could be in a much better position to ride out future hikes. 

Here are 4 simple new year’s resolutions that can help you keep your finances fighting fit.

1 – Is it time to ditch the unnecessary expenses?

The 2022 rate rises had a lot of us trimming back our budgets, but expenses can creep back in. Before you know it, those “free trials” you forgot to cancel become paid monthly subscriptions. 

It is good to get into the habit of conducting regular expense audits… cut down on streaming services, take-away meals, and impulse purchases to make savings. That said, you don’t have to become an extreme penny-pincher. Little tweaks here and there can add up. For example, a daily $4 take-away coffee habit costs you $1,460 per year. But switching to a DIY French press brew can cost you $260-$400. 

2 – Have you got an emergency buffer fund?

The last few years have taught us to expect the unexpected. Having money tucked away for emergencies or more rate rises, can give you added peace of mind. 

You can use unlocked savings from your expense audit to start building up an emergency buffer. And consider adding even more to this fund by selling any unused or unwanted items on ebay or Gumtree. 

Then, if rates go up further, you lose your job or have any unforeseen medical expenses, you will have the funds on hand. And you can get rid of some clutter in the process. It is win-win!

3 – Do you need to pay down debt?

Christmas is a time many of us cut a little loose on our spending, but it is important to make sure you pay off any debts quickly. Now may be a good time to either start paying back any money owed on your credit cards, get ahead on your mortgage (if you are able to), or vanquish any debts you might have. 

Also, consider avoiding credit card or buy now pay later purchases if possible. If you forget to pay these on time, you could incur interest and/or late fees. 

You may also find that quickly reducing debt tastes sweeter than a take-away mochaccino, and your credit score might thank you for it too, which can make purchasing your first home, a new property or refinancing that little bit easier. 

4 – When did you last review your home loan?

If you have had your home loan for a while, you could be paying something called “the loyalty tax.” This is where lenders don’t pass on new borrower rates to existing customers. 

An RBA study found that compared to new loans, borrowers are charged an average of 40 basis points higher interest rates for loans written four years ago. 

Arranging regular home loan health checks can potentially uncover opportunities for savings. Not only could you secure a lower interest rate, but you could refinance to a mortgage with other features that may be a better fit for your circumstances such as an offset account, fixed period, or a linked debit card, to name a few. 

To get started on your home loan health check and prepare for whatever 2023 throws at you, get in touch. 

We will look at your financial footing, your mortgage, and the market to scope out suitable loan products and potential savings. 

Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au



Zippy Financial
 is an award-winning mortgage brokerage specialising in home loansproperty investmentcommercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 

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Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.