When it comes to borrowing money many people feel like they have little control over their circumstances and that the banks hold all the cards. The reality is that you do have control – provided you stay calm and consider the following

– Control What You Can.

1. Your Debt - You can determine how much you want to borrow. Yes,the banks will have limits and criteria, however you know what limit is comfortable for you.

2. The Cost of Your Debt- By considering the various options you can reduce the COST of your debt (the amount of interest you pay long term). Examples of this are:

• Fixing the term to lock in a low interest rate
• Saving a little more and increasing the amount of your
deposit
• Increasing your regular weekly, fortnightly or monthly
instalments. This can be done on either fixed or
floating interest rate loans.
• Revolving credit – this does require discipline but can
be a useful tool in reducing the cost of your debt
• Repaying lump sums at regular intervals
All this can be achieved by sending us an email with your
instruction and quoting your loan account number

3. Who you borrow from – yes it’s a free economy! You can change your lender at any time as this is a factor
you do have control of. Each lender offers different benefits/advantages – so as your lifestyle changes, your
lender may need to change too!

4. Control the conditions of your mortgage Although Banks have terms and conditions, by shopping around, you can choose a bank with conditions that benefit you and don’t cost you more. An example of this is that some banks insist that you obtain a Registered Valuation irrespective of whether you are borrowing less than 80% and where a purchase price exceeds $500,000 or in the event the purchase is by private treaty. Other banks do not require this and are more flexible. So choose the lender according to your wants and take back the control. 

Furthermore, they are now endeavouring to dictate who does the Valuation for you – another example of taking
away your choice. As a broker we are able to evaluate your wants and needs and find a bank that best suits you as opposed to a bank selling you what they offer. 

Call anytime – I’m here to help!