Is your home loan structured the right way to help you achieve your financial goals? What you may not realise is that you could benefit from finance restructuring. Gold Coast specialists, Empire Financial Group Australia, can help you restructure your existing banking accounts to better suit your needs.
What Is Finance Restructuring?
Many people assume their local bank has set up a mortgage, a transaction account and a credit card to help make their banking needs easier. Other banks may have set up an offset account, personal loan, line of credit, or other financial products that may not always be working to your advantage.
Yet your individual finance goals may not necessarily be suited to the banking products you’ve been using. The key to finance restructuring is to take your personal circumstances into account, before setting up the right types of banking products to help you reach your goals.
Who Can Benefit from Finance Restructuring?
There are plenty of different reasons why a homeowner might choose to restructure their finances. Some examples where restructuring can benefit a homeowner include:
Reducing monthly repayments: keeping up with monthly repayments on a home loan, car loan, personal loan, credit card, and store cards can be challenging for many families. Each of those personal debts attracts a different rate of interest, some potentially as high as 20%.
However, by restructuring outstanding debts the right way, it’s possible to reduce the amount of interest you pay overall at the same time as cutting down the minimum monthly repayment due. If the new loan is set up correctly, it may also be possible to pay off your loan much faster than you thought possible.
First home buyer: buying your first home can be daunting. However, if you ask for advice from a finance specialist first, it’s possible to restructure your existing finances in such a way that it has the potential to strengthen your mortgage application.
Setting up your finances correctly may not only strengthen your application, but it also has the potential to increase your borrowing capacity. It’s also the ideal time to determine whether choosing a fixed or variable home loan will be right for your situation.
Investment structuring: if you own an investment property as well as the family home, you might benefit from restructuring your existing loan set up. There are potential tax benefits to be gained for ensuring your investment mortgage is set up correctly.
Throughout February, APRA issued a warning to Australian banks about the level of investment lending and sought ways to slow down investor demand. As a result, many banks increased the interest rate charged on investment loans.
Rather than pay more than you need to on your investment mortgage interest rate, it may be worthwhile asking a finance specialist at EFGA to compare options from other lenders.
No matter what your current financial situation looks like, it may be possible to improve it to suit your future goals. To see whether your circumstances can benefit from finance restructuring, Gold Coast specialists at EFGA