Are you too busy to save Money$$$?
The BANKS are ripping you off!
Currently I am finding a lot of my clients are just too busy in the rat race of life. Working long hours, trying to get ahead, climbing up the ladder for a larger promotion, trying to find more money to pay for bills, mortgages, school fees, medical and health costs and somewhere in amongst that trying to find the money for holidays and dining out.
We are just so time poor in our working lives, kids seaming to be doing more extra curriculum activities and sport, traffic is a nightmare, getting home seeing the kids for 5 minutes, cooking dinner, somehow fitting in the gym and trying to meet up with friends.
With all of that in mind, it’s no wonder we can’t keep control of our finances very well or look for opportunities to save some money! We all shop around for an energy bill giving us the best savings or a mobile plan that is saving us $10per month, which is great, however usually the largest monthly bill you have is for your accommodation either rent or the mortgage payment on your home. Renters have the opportunity every 6 or 12 months to shop around for the best rent or move into a desired location. But what about your home loan?
Most homeowners with Mortgages put up with higher rates on their home loans without a second thought. If I asked you what your current home loan rate is, 80% of the population would not even be able to tell me. Don’t worry the banks don’t exactly want to tell you either! It’s often hard to find the actual rate in online banking and most of the time your statements just state there has been an interest rate change but don’t tell you the actual rate you are paying.
Let me tell you what a difference of .5% in interest does to a $400,000 home loan. This will save you about $2,000pa. Instead of wasting it on higher interest paid to the bank, you could easily put this into advanced repayment on your home loan enabling you to pay it off faster, save up for a small holiday or get on top of your other bills. To break this down it is $38pw back into the household budget. It’s like getting a small pay rise!
The time it will take you to do a refinance and get all the paperwork is probably going to be a few hours in meetings and in completing the documents for your new loan. But the savings are ongoing once it is done. You should look at these every 2 years to make sure your bank is competitive and offering you the best rates.
We have just saved a client over $20,000pa in interest costs as the competition has changed so much in the last 12 months.
If you would like a review of your current mortgage or some new finance structuring advice come and have a talk to Cathy or Chris from Blue Wave Finance Strategies email@example.com or 0444 588 808