MANAGING FINANCES

Managing financesin a pandemic

WE’RE NOW ALMOST TWO YEARS INTO THE COVID-19 PANDEMIC, AND THAT HAS HAD AN IMPACT ON VARIOUS AREAS OF OUR LIVES. THE SOCIAL IMPACTS HAVE BEEN EXTREMELY DIFFICULT, BUT POSSIBLY THE MOST SIGNIFICANT IS THE FINANCIAL IMPACT.

Don’t bury your head in the sand; open communication lines with lenders is the best response. All financial institutions have policies and procedures in place for these situations. They are willing to work with you and in some cases fees and charges can be waived. If you’re suffering from financial hardship, speak with your broker. They are trained to support you during tough times and will be able to help you find the best way forward. Relationships are still key to your success, and you need to trust the person you are dealing with. A broker will constantly develop strategies for financial sustainability and negotiate the best outcomes for you. Refinancing is just one option you can explore. Your home loan might have been great when you first got it, but banks are competitive, rates change, and lending products evolve. Your home loan might not be working as hard for you as it could be, and it could be costing you money. Perhaps it’s time to review your mortgage? The benefits of refinancing are: • Lower interest rates or a reduction in fees and charges; • Independent award-winning brokers reviewing your loan on an annual basis; • Unlocking equity in your home for renovations or investments; • Lower repayments; and • Debt consolidation – you might decide to consolidate some of your other high-interest debts such as credit cards into one mortgage with a lower overall interest rate. This means you’re paying lower interest and in many cases, you can even reduce your monthly repayments, which frees up your cash flow. Consider the potential savings if the difference between the two rates is 30 basis points on a $600,000 loan over 30 years. For example, $600,000 at 3.99% is $2,862 per month, or at 4.29% is $2,966 per month — that’s a difference of $104 per month, and a difference of $37,682 in interest over the life of the loan. There are costs associated with refinancing, but lenders are now rebating this to attract new clients, thus making the exercise cost neutral.

Is a home loan refinance right for you?

There are many reasons to refinance your home loan but make sure you get a quote from a mortgage broker before you jump into anything. You need to be sure about what you’re hoping to achieve by refinancing. Discuss your goals and aims with your mortgage broker before making a final decision.

Who has the best home loan? It is the one question a mortgage broker hears all the time.

The best home loan is the one that suits your individual needs and circumstances. Everyone’s financial situation is different, so trying to copy the home loan solutions they’ve chosen might not be the best option for you. You need to consider what will fit your personal budget, your own goals and your own needs.

Fixed or variable rates?

That is the million-dollar question, and the answer depends entirely on you. Banks offer packages that can meet your needs. Your mortgage broker will know which packages would suit your personal budget and circumstances. Speak with your mortgage broker about what options are available for you. In some instances, you could reduce your interest rate, consolidate other debts or perhaps even free up some extra cash. You might find that refinancing could save you thousands of dollars in fees and interest charges. A mortgage broker can help you at any stage in your financial journey - whether you’re saving for your first home, or wondering if you’re still getting the right deal with your existing lender. You can make an obligation-free appointment with us at a time and place that suits you. ■ Chantelle Shevels, CEO, Grass Roots Finance.

Your house is much more than just a home

At Peppin Insurance we understand that homes are much more than just bricks and mortar. Talk to us about how you want to insure your treasured possessions. We are here to make sure that if disaster strikes you have someone in your corner guiding you through. On your side, by your side.

03 5881 1866 enquiries@peppininsurance.com.au 130 End Street, Deniliquin

Split System Air Conditioning

Daikin Split Systems are ideal for air conditioning one room or a specific area of a home. A wide variety of models are offered to suit your requirements and are available in either wall mounted or floor standing type.

Air Purifiers Multi Split Air Conditioning

Daikin Multi Split Systems can heat or cool multiple rooms using only one outdoor unit connected to multiple indoor units. Each indoor unit can also be individually controlled, scheduled and set to the desired room temperature.

Specialist Dealer. The Best Air Anywhere.

ID APPLIANCE SERVICE

Ian Watt 0417 629 488

PO Box 51, Deniliquin NSW 2710 Email: idapplianceservice@bigpond.com www.idapplianceservice.com.au

Ducted System Air Conditioning

A Daikin Ducted System provides discreet air conditioned comfort. It can be installed in a new home or tailored to suit an existing one, and once installed, only the controller, the return air and discharge grilles are visible inside your home.