TOOLS TO TACKLE REPAYMENTS

Reception • Jun 24, 2021

Tools to Tackle Repayments

Repayments. The word alone can bring with it stress and anxiety regardless of what debt your repayments are servicing. 


If it feels overwhelming, don’t despair. It doesn’t have to be a life sentence! Here are a couple of financial tools you can wield to take command of your debts and repayments: Consolidation; and/or Refinancing.


Which tools are right for you will depend on your situation.

CONSOLIDATION

By definition, to consolidate means to combine a number of things into a single, more effective whole. Debt consolidation being the bringing together of two or more debts into one more effectively serviced debt.


Who might be able to benefit from consolidation?


Anyone who can say “that’s me” to one or more of the following points:


  • Trying to keep track of multiple debts
  • Struggling to manage multiple debt payments
  • Paying varying interest rates (especially if they are high)


What are the benefits of debt consolidation?


The best thing about debt consolidation is that it creates a clear, defined picture of your debt – giving you the opportunity to see down the timeline to when you will be debt-free, or able to look into more opportunities such as renovating, travel, or investment.


This clarity results in reducing the stress that multiple debts and financial uncertainty can cause.


(Not to mention the financial savings that can arise through reducing: interest rates; late payment fees; and other costs associated with servicing multiple debts!)


Amie explains more about Debt Consolidation here.

REFINANCING

The term ‘refinancing’ typically refers to the process where a mortgage is bought out, or taken over, by another lender and/or product. Typically, at a lower interest rate, resulting in financial savings for the borrower (you!).


Who might be able to benefit from refinancing?


Anyone who has a home loan that has not had a health check in the last 12 months, especially if any of the following apply to you:


  • A change in income
  • An increase in property value
  • A mortgage over 5 years old
  • An interest in accessing equity
  • A desire to pay off your mortgage sooner


What are the benefits of refinancing?


The benefits you receive from refinancing will vary based on your reasons for doing it, however the most significant is typically financial savings by way of reduced interest rates giving you lower monthly payments and/or a shorter loan term.


Of course, refinancing can also provide you with cash access to some of your home equity if you are wanting to renovate your home or look at investing.


Narida discusses refinancing here.

YOUR FUTURE, IN YOUR HANDS.

The important thing to remember is that how things are today is not how they have to be tomorrow – but the decisions you make today, have the power to make the difference.


We’re here to help. The Team at Future Finance are dedicated to our client’s goals and we love nothing more than to see their success! Give us a call today on 8657 8664 (or contact us here). We can help you see a clear picture of your current situation and set you on the path to reduce your stress so you can look forward to new opportunities.

Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. © 2021

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Navigating the World of Mortgages: What borrowing capability do you have? Deciding to buy a house is an exciting milestone, and we're here to accompany you through the intricate world of mortgages. With the changes to interest rates that have happened over the last twelve months, it's essential that we are prepared and approach borrowing with a healthy attitude, as your choices now will have long-lasting implications, so let's ensure you're well-prepared for this homeowner journey. What should I consider when considering my borrowing limits? First, let's figure out how much you can borrow without sacrificing your peace of mind and daily joys. The key here is to measure your income against your expenses, including the potential mortgage repayments. A general rule of thumb: try to keep your mortgage repayments to no more than 35% of your gross monthly income. When it comes to borrowing generally, the higher your deposit and the higher your income, the more they should be willing to lend. The good news is we have more flexibility as mortgage brokers than the big banks, so we can look at your circumstances closer. Now, let's discuss some essential factors to consider when figuring out your borrowing limits. How much debt can you handle? Think about your lifestyle and what you're willing to give up versus what's non-negotiable. Be realistic about your dream home. Start with something affordable and gradually work your way up as your earnings grow and your equity increases. Think about the future. Are you planning to start a family, change jobs, or experience significant life changes? Factor those possibilities into your calculations. Keep an eye on interest rates and consider how further rises might affect your ability to make repayments. Reminder; A reminder that when purchasing a property, you will also need to factor in further expenses, such as, pay stamp duty, pest & building inspections, conveyancer fees, application fees, council rates, possible strata or body corporate costs, and utility bills to factor in. In Summary We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation to help you whether you are purchasing your first home or refinancing. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/

Refinancing: What Are Your Options As A Homeowner?

By Bree Jones • 19 Jun, 2023
At Future Finance Group, we understand that financial hardship has become a pressing concern for many homeowners across the country, including Melbourne. We want to help you explore the benefits of refinancing your mortgage. By assessing the right time to refinance and understanding the steps involved, we can guide you to potentially save money, access improved loan terms, and secure a more favourable financial future. What are the Benefits of Refinancing? During these challenging times, refinancing your mortgage can bring meaningful advantages. Firstly, it may allow you to take advantage of lower interest rates, reducing your monthly mortgage payments and offering much-needed relief. Additionally, refinancing allows switching from a variable-rate to a fixed-rate mortgage, ensuring stability and protection against future rate increases. By consolidating high-interest debts, you can streamline your finances and gain more control over your monthly obligations. Also, refinancing can unlock equity in your home, providing funds for essential expenses or other financial goals. Assessing the Right Time to Refinance Working out when to refinance can be challenging, mainly because we do not know what the future will bring. We are here to look at your personalised options and work with you to ensure your financial security. We can consider many factors, such as your credit score, home equity, and employment stability, to give you informed options. Steps Involved in Refinancing and Potential Cost Savings : We are here from the beginning to the end and strive to simplify the refinancing process for you. We'll help you evaluate your financial situation, research and compare over thirty lenders and loan options, and gather the necessary documentation. Our ultimate goal is to help you secure better terms, rates, and long-term cost savings to ease the pressure on you and your family. In Summary In these challenging times, exploring refinancing options can provide much-needed relief and open up financial opportunities for you as a homeowner. What should I do next? Our dedicated team is committed to nurturing your financial well-being and helping you achieve a stronger and more secure future. Call our office on (03) 8657 8664 to organise a time to chat, and we also invite you to take advantage of our free resources by heading to our website. https://www.futurefinancegroup.com.au/
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