Rising costs continue to put pressure on Aussie families despite rates remaining unchanged, but expert Aussie Home Loans brokers are calling on homeowners to act now to improve their personal situation. In the face of unchanging interest rates, Aussie reminds homeowners that doing nothing is often the worst financial decision they can make.
Aussie brokers Scott Adams and Sam Fowler said Aussie households are bearing the brunt of rising costs and stubborn interest rates but accepting their home loan position is static is costing them in the short and long term.
Aussie brokers reveal 5 real and meaningful tips they’re currently using with their clients on to put $90k back in their pockets.
Debt Consolidation
In response to growing expenses, many Aussies have taken on additional personal loans and credit cards. By combining high-interest debts into a home loan, homeowners can reduce monthly payments and improve their financial health
Scott Adams said "Consolidating personal debts into a home loan can significantly improve cash flow for many Australians. It's no secret that Aussie families are feeling the pinch. Debt consolidation can provide much-needed financial relief."
"I recently helped a client who used multiple personal loans to finish and furnish their home. By consolidating their debts, we reduced their overall repayments by over $1,000 per month. At a time like this that immediate relief is amazing for this client, but over the life of the loan that is game-changing money”.
Top Up Your Home Loan to Create a Financial Safety Net
Building an emergency fund is essential for financial stability. With the average Australian property growing by a whopping 8% over the past 12 months, Aussie’s could access up to $70k by topping up their home loan.
Sam Fowler said: "A home loan top-up can provide peace of mind. It’s like having an insurance policy for financial emergencies."
Loyalty Costs You - Check Your Interest Rate and Avoid Overpaying
Customers on a 6.4% interest rate could save $2.4k per year by refinancing to a better rate. Last week, Aussie released a new tool, Home Loan Health Check, to help Aussies do just that.
Fowler said "Many homeowners are unknowingly overpaying on their mortgage. By checking your interest rate, you could potentially save thousands of dollars over the life of your loan.”
Extend Your Loan Term for Short-Term Relief
Understanding the long-term implications of your loan gives you options. Adding an extra five years to your loan term, could save thousands in repayments in a year.
Fowler said "Working through your options with a local expert can free up much-needed cash into your weekly budget.” This option can be considered as a part of a refinance transaction, and needs to be considered carefully.
Work With Your Broker to Identify Savings Opportunities
Fowler and Adams said "The best outcomes are born out of consistent planning and open dialogue with your brokers. Budget review is a crucial step and creating a clear picture of your income and expenses, you can make informed decisions about where to allocate your money and having an expert in your corner makes an enormous difference.”
ENDS
About Aussie
Aussie was founded in 1992 and was widely credited for bringing competition to the Australian home mortgage broking industry. For 30 years, Aussie Brokers have put home ownership within reach of more Australians, helping over 1 million customers with their home loan journey. With more than 230 stores nationwide, Aussie has the largest retail brokerage footprint across Australia.