The news everyone was hanging on. Despite pleas from Howard and Costello the RBA has decided to lift cash rate to 6.0% with their desicision based on an underlying inflation rate of 3%, above-average global growth and strong domestic demand indicating likely inflation increases ahead. Continue Reading »
Saving a little money on everyday expenses and adding it to your home loan repayments can certainly help in getting that home loan paid of a little faster. Even if you are saving for a deposit it pays to look at your everyday spending and see where there may be an extra dollar or two to put away.
In some cases it may not mean sacrificing your standard of living just spending wisely and managing what you have.
One of the first steps is to have a budget. Start with listing all your monthly income and all your monthly expenses including debt repayments or deposit savings. Also allow for saving some money each month for emergencies ie doctor bills, car repairs and unknown expenses. (more…)
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An Offset Account is a deposit account linked to the loan. The benefit being that any surplus funds that you might have, for example rental income or your pay, can be deposited into the account, offsetting the daily interest charged on the total loan amount. An Offset Account is generally not a loan that an investor would use on an investment property, but rather on their family home in conjunction with an investment.
As an example – if the loan amount outstanding is $100,000 and there is $5,000 in the offset account, the interest that is charged on the loan will be calculated on $95,000. As a result, the home loan is paid out at a faster rate. This is because the standard monthly repayment has been calculated on the full amount outstanding. (more…)
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There are basically two options most homeowners go with when refinancing mortgage loans, you can either refinance or go with a cash out (line of credit) refinance home loan. When you go with the refinance mortgage route you are basically refinancing your existing mortgage or consolidating debts hopefully at a lower interest rate to save money. Continue Reading »