Your Mortgage
21.04.2020
In reviewing outgoings, the home
mortgage is a starting point. Here are 2 actions we are taking for our clients
when requested.
Your Mortgage
Two important thoughts
I
asked a broker to help me with the approach to finance, we started on
mortgages.
Get the rate down for a starter
He
said first, generally your clients maybe will almost certainly be paying too
much on their mortgage.
Why?
Well
he told me the average Australian is paying 0.6% more than they could because
quite simply they have “set and forget” it. Now Banks (like mobile phone
providers and utility companies) have a different pricing strategy for new
clients than they do for existing clients.
While
we are looking at finance in the time of the virus may be getting a better rate
from the bank or financier may be a better thing than chasing deferment
(certainly in the long term)
I’m
told don’t be mad, we all need strong banks and our Super loves them when
they’re strong! Simply understand the rules of the game
It’s
an odd time to say, but maybe it’s time for a review, and the first thing is to
contact the bank or financier. If you want to try this then please discuss it
with your client co-ordinator. We will see if we can get it in motion.
Better
chance if you have an excellent record of paying your mortgage.
Deferring your mortgage
There
are a number of ways to approach your bank for a deferment plan but the most
effective way is to approach them with your financials to date and in a format
they understand.
We
have that.
If
you need to ask for a deferment, we can help with a letter that goes with your
Cruncher, (Not for those on Xero) a set of P&Ls, balance sheet and a copy
of your ATO portal.
It’s
always worth formalising the game plan as to why they should help. For example,
have you only ever banker with them? Do you have financial planning products
with them? Insurance?
Banks
are more likely to help if they are making money from you in other areas as
they see clear reasons as to the plan after the help requested has ended.
Therefore, be clear on your strategy to create the change needed to get back on
track.
There
may be a tax debt and other issues, so we may miss that and try for a deferment
without these, anyway, we are going to have a “crack at it”. We also should
plan ahead even if you don’t think you need a deferment (but hey everyone needs
a reduction in rate, especially if your financier will just after an approach
give it to you).
Let’s
talk about finance companies tomorrow.
Serviced by related company Fresh Number Pty Ltd