Debt reduction is just as important as wealth creation.
“Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn’t pays it.” Albert Einstein
Debt is compounding interest working for lenders, you need to understand it and take control of it.
You need to a plan to get rid of all credit card debt, personal loans and car loans, and you need a well-structured mortgage that helps you pay down your debt as fast as possible.
You need to work out, mathematically and emotionally if you are comfortably able to afford repayments over the term of the loan, and you need to think about how your debt impacts your current and future lifestyle.
It can be very tempting to go for that ‘slightly more expensive’ property, especially if your bank is willing to increase your loan. Be very careful.
Before I arrange your mortgage we’ll consider:
- Does owning your own home, with the commitment of a mortgage, fit your lifestyle goals?
- Have you considered rate rises and would you be able to meet higher repayments?
- Are your circumstances going to change? Are you planning on starting a family, or a business and relying on one income?
- Are you comfortable with the percentage of your income that is going towards debt repayments and will you be able to maintain this in the long term?
- Do you have a 20% deposit? If not, do you understand the associated risks of this strategy?
- Do you know what Loan Mortgage Insurance is, who it protects, and how much it costs?
I’ll help you get the right mortgage, for the right amount.
Nicole Heales is a Credit Representative No 408933 of Finsure Finance & Insurance Pty Ltd Australian Credit Licence No 384704.
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