Swan Valley Finance

29/03/2020

Coronavirus and Your Finances Update - Early access to superannuation

Individuals affected by the coronavirus can access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. You will be able to apply for early release of your superannuation from mid-April 2020.

Eligible individuals will be able to apply online through the myGov website to access up to $10,000 of their superannuation before 1 July 2020. They will also be able to access up to a further $10,000 from 1 July 2020 for approximately three months (exact timing will depend on the passage of the relevant legislation).

To apply for early release you must satisfy any one or more of the following requirements:
- you're unemployed
- you're eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance on or after 1 January 2020
- you were made redundant
- your working hours were reduced by 20 per cent or more
- if you're a sole trader, your business was suspended or there was a reduction in your turnover of 20 per cent or more.

People accessing their superannuation will not need to pay tax on amounts released and the money they withdraw will not affect Centrelink or Veterans’ Affairs payments.

10/03/2020

One rate is for fixed-rate loans while the other is for variable mortgages

10/03/2020

Do you wonder what it must be like for people who don't have to worry about their household budget? How much different would your life be if you didn't have that mortgage payment coming out every fortnight?
What if there was a way to pay your loan off sooner so that you can start enjoying the finer things in life?

Well, there are six steps you can take today, which will make an enormous difference to the time that it takes to pay your loan off.

You could be holding that title in your hand sooner than you think.

In the past weeks, we looked at Step 1: choosing the best loan, and Step 2: changing your repayment frequency. These are both excellent ways to reduce both the length of your loan, and the total amount that you pay over the life of your mortgage.

Today, we will discuss how a few small changes to your budget can make a huge difference to the time it takes you to achieve your financial goals.



Step 3: Pay more to pay it off early

It might seem strange, but in the first few years of your home loan, you usually just pay off interest, barely touching the amount that you borrowed in the first place. This means that the interest on your loan won't start to reduce for quite some time if you only make the minimum repayments.

If you can tweak your budget to pay just a little bit more each month, or each fortnight, you might be surprised at what a difference it can make.

For example, on a loan of $400k:

By paying an extra $50 each month, you could save around $36k on your total interest, and pay your loan off 1 year and 9 months sooner than expected.

Do you buy a takeaway coffee every day on the way to work? By saving $4 per day, and paying the savings off your loan now, you could save about $55k on your total interest, and pay your loan off about 2 years and 8 months early.

Try making a list of all the small things you spend money on daily or weekly, and see if there is anything you could happily do without. Just for fun, grab a calculator and multiply the item by 52 weeks, and then 25 to 30 years. You might be surprised what you find!

Want to pay your mortgage off sooner? Stay tuned for Step 4: the power of Offset Accounts and Redraw Facilities.

02/01/2020

SWAN VALLEY FINANCE & MORTGAGE AUSTRALIA GROUP WISH YOU A HAPPY, HEALTHY, PEACEFUL & SUCCESSFUL NEW YEAR FOR 2020

26/12/2019

https://www.yourmortgage.com.au/mortgage-news/is-the-firsthome-buyer-scheme-rushed/269179/

The implementation of the scheme is in two weeks — are first-home buyers ready?

12/12/2019

The decline in first-home buyer loans moderated as affordability improved

03/12/2019

How to take advantage of a buyer's market:

One of the keys to success in the property market is TIMING.

So how do you know when the time is right to step up on the property ladder?

For the answer, download our guide to "Taking Advantage of a Buyer's Market".http://www.mortgageaustralia.com.au/email/files/takingadvantageofabuyersmarket.pdf

03/12/2019

How to be a Mortgage Master!

We can't control the economy but we can control our budgets. Borrowers should do what they can to pay off their loans fast while times are good.

1. Pretend rates are higher

One of the biggest mistakes mortgage-holders make is pocketing the savings from reduced interest rates. The problem is they're usually spent, instead of being socked away. Try working to a tighter budget, where you make home loan repayments at the rate of 9% per annum.

If, for example, you have a $250,000 mortgage over 30 years with an interest rate of 7%, you'll save nearly 11.5 years and a whopping $150,000 if you pretend the rate is 9% and pay an extra $350 a month.

What's more, if rates do climb, you will be well prepared financially to cope with them.

2. Make more frequent payments

Switching from monthly to fortnightly payments can slice years and thousands of dollars off your mortgage, with minimal disruption to your budget. By halving the monthly repayments and paying fortnightly on a $300,000 mortgage over 30 years, you'll save more than six years and more than $100,000 over the life of the loan.

3. Make the most of windfalls

Put away the travel brochures and get into the habit of spending your tax return and/or professional bonuses on your home loan instead. You should also channel any annual pay rises into extra repayments (if the terms and conditions of your loan allow you to do so without penalty payments).

Providing your loan has a redraw facility, you should be able to access the funds if the need arises.

4. Offset with savings

Link your home loan to an offset account, where your savings are offset against the principal, reducing the amount of interest you pay. The more you have in savings, the lower your repayments.

5. Small change - big difference

Grab the kids' piggy bank and start stashing your gold coins. You won't miss one or two dollars in change, but it can make a big dent in your mortgage if deposited regularly over long periods. Just an extra $20 a fortnight will shave nearly $15,800 or more than 1.25 years off a $300,000, 30 year loan.

Pack your lunch and forgo a take-away coffee each day and your interest savings soar to more than $40,000!

6. Ask your Mortgage Broker to shop around

We shop around for the latest technology deals but probably don't go to the same lengths for our loans. Lenders can no longer charge mortgage exit fees if you decide to break a variable home loan, so there has never been a better time to ask your broker to shop around for a better deal. Your existing lender may even come to the party with a lower interest rate in a bid to keep your business.

7. Bank on your local Mortgage Broker

Let your broker do the legwork to find the best loan for your circumstances. You may qualify for a package deal with a discounted interest rate over the life of the loan, which could save you thousands. Your broker also has access to a wide range of banks and credit unions, including more boutique lenders who may be prepared to offer more than the majors.

01/10/2019

At Swan Valley Finance we specialise in helping First Home Buyers. We recognise that it is a big step into borrowing and owning your own home for the first time.
We will work out your borrowing capacity and loan recommendations following a fact find from your financial position. We work with many lenders including the WA government backed Keystart initiative, so we can find the best solution for you.
From pre-approval through final approval to settlement we are there with you every step of the way.
Contact us today,