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  • Rachael Ooi

Home ownership is not set and forget!

Home ownership is one of the average Australian family’s goals but owning your home is not set and forget.


In fact in the same way you should review regularly review your superannuation and your insurances to ensure that your strategy meets your goals and objectives, a regular review of your home loan can be an integral part of your wealth creation. Given that the RBA (The Reserve Bank of Australia) has dropped the cash rate to 1% this year in a move to boost the economy have you reviewed whether your bank has passed on this rate cut to you? The rate of interest that your home loan is charging can make a great difference to how much and how long it takes to repay your home loan.


For example; If you have a loan of $500,000 to pay the loan off at 4.5% it will take you 25 years and 1 month to repay it. You will have paid $336,270 in interest. Whereas if the same loan is repaid at 3% interest you will repay the loan in 20 years and will have paid $166,976 in interest. (See detailed graph below)


This is a savings of $169,294 in interest and 5 years! Would you rather pay off your home loan sooner and pay less interest? Check out https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/mortgage-calculator#!how-can-i-repay-my-loan-sooner to run your number, or contact us on 07 3211 8600 to discuss further.


General Advice Warning: 

The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.

 

Disclaimer: 

Whilst Your Wealth Consultants is of the view the contents of this website is based on information which is believed to be reliable, its accuracy and completeness are not guaranteed and no warranty of accuracy or reliability is given or implied and no responsibility for any loss or damage arising in any way for any representation, act or omission is accepted by Your Wealth Consultants or GPS Wealth Ltd or any officer, agent or employee of Your Wealth Consultant or GPS Wealth Ltd.

Your WC Group Pty Ltd, trading as ‘Your Wealth Consultants’ & ‘McMaster Heathfield Wealth Advisers’, is a Corporate Authorised Representative (#1260416) of GPS Wealth Ltd | AFSL 254 544 | ABN 17 005 482 726 | www.gpswealth.com.au

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