Find the Right Loan for you | Income Protection

Accord Financial Strategies can help you get rid of that home loan!

Lowest mortgage interest rates, fees, and charges are just part of the picture if you really want to save thousands on your mortgage repayments. Relying on the repayment schedule set by your bank will only do one thing – help increase your bank’s profits. See our case study below for an example of ways to speed up repayments and make your mortgage tax effective.

Accord Financial Strategies's free service assists you to source the most competitive home loan from our panel of lenders to meet your circumstances. These may include:

Discounted variable rate loans
Fixed rate loans
Interest only loans
Principal and Interest loans
Line of Credit loans
Investment or Owner Occupier loans
Or combinations of any of the above.

The loan with the cheapest interest rate may not be the best loan for you. You may be faced with large penalties if you wish to repay early, or you might not be able to make additional payments, redraw, or have a loan offset account. There are many options to choose from, so let us help you ensure that you will not only save money but also have the right loan for your lifestyle and future requirements.

Once we put the home loan in place, the next goal is to get rid of it as soon as we can!

Case Study

How can we ever get ahead?

Matthew and Kerry are married with two children. They own their own home with a mortgage of $100,000. Matthew earns $60,000 p.a. as a teacher and Kerry works part-time earning $22,000 p.a.

They have been paying off their mortgage now for 10 years, and consider their property to be an excellent investment as it has increased in value to $400,000 since they bought it.

Matthew & Kerry feel they are getting nowhere with their mortgage. What are their options?

Some Possible solutions to explore:

Utilise a Line of Credit strategy and direct all earned income to this account- this can eliminate ‘income slippage' and helps clients focus on debt reduction.

Tap into the equity in their property to diversify their investment base with a geared equity portfolio, using additional income and realised capital gains to accelerate the capital repayments on their home loan.

Redirecting the tax benefits from a geared property portfolio into extra capital payments on their home loan.

Building a portfolio of investments where the capital expenses are tax deductible and using the tax refunds to accelerate capital payments on their home loan.

Plus many other possibilities!

Income protection to safeguard your assets

We all make sure our cars, our houses and even our holidays are insured, but insuring our most important asset – our income – is often overlooked.

Case Study

Income Protection Insurance

Geoff and Janine are married with three children. They own their own home with a mortgage of $230,000. Geoff earns $70,000 p.a. as a builder and Janine works as a sales assistant earning $35,000 p.a.

Their children go to private schools and all of Janine's income is allocated to covering school expenses.

Unfortunately Geoff had a major vehicle accident on the way home from a Saturday golf game and he is likely to need three months off work to fully recover. There is a possibility he may also permanently loose the use of his right arm, which will affect his ability to continue working as a builder. He has two weeks sick leave entitlement through his employer and limited cash reserves to pay medical and living expenses.

Some options and issues to consider

Salary continuance through superannuation would have covered 75% of Geoff's salary for up to two years, allowing the children to continue on at private schools.

An Income protection policy (the premium is tax deductible) could have covered Geoff for up to 75% of his own occupation for periods up to age 65, ensuring a reasonable quality of life if he is unable to carry on working as a builder.

Without this cover, not only is the quality of their children's education put at risk, but also their lifestyle right through until retirement and beyond.

The family's current lifestyle could be insured for an after tax cost roughly the equivalent of their house insurance policy.