Knowledge and Discipline required!
Iden Loan Services Director Barrie Gaubert said today at the launch of Iden’s PowerSaver Mortgage that people need knowledge and discipline to be able to pay off their mortgage at a rapid rate.
“There are generally only two ways you can pay off your mortgage:
a) Pay down your mortgage with your savings
b) Reduce interest costs with higher repayments
The question is “why don’t people pay down their mortgage sooner?”
Back in the 90’s banks introduced a new banking product called a ‘Line of Credit’ and many people were impressed with the logic of borrowing a loan at a higher interest rate, but placing their wages and savings into the mortgage to pay down the home loan sooner!
But as things developed most people who were provided with a ‘limit of borrowing’ were in actual fact getting them deeper into debt by not having a controlled program to reduce the mortgage with regular payments.
What went wrong with this good idea? The borrower was inexperienced in managing a mortgage of this nature and soon he became the banks next best friend borrowing to his limit and unable to reduce his loan.
Using a standard bank loan of principal and interest payment the bank had provided the necessary disciplines to reduce the mortgage.
Borrowers had not been trained in the principles and disciplines required for such a loan.
With a PowerSaver Mortgage Iden provides the tools and disciplines required to better manage home loans, with the objective of paying down the loan in the shortest possible time.”
25th June 2010
Gaubert says “Become debt free”
Iden Loan Services Director Barrie Gaubert said today at the launch of Iden’s new PowerSaver Mortgage:
“Just think for a moment what it would be like not to have to repay a monthly mortgage repayment, and how that would change your lifestyle, and how it would present you and your family with an opportunity for personal growth and investment opportunities.
It could be your chance to become one of the 5% who retire independently and not in need of the pension. Remember retirement is becoming a ‘later’ event, and the pension is today all of $ 569.80. This is for a fortnight by the way for a single. It is $475.90 per each adult for couples. Try and do your budget on those numbers !!
Any loan you have that is not deductible, you have to earn after tax dollars to pay off. Not even low interest rates helps your tax position, and you have to pay lots of tax just to get to the principal of your loan. So the sooner the non deducible debt is gone, the better.
With interest rates close to historical lows of 30 years, now is not only the best time, it is time anyone paying of a non deductible mortgage, to get real with their budget planning, and set yourself up for a future where you are in control.
It is time to get ahead for the rest of your life. You owe it to yourself and your family.
So how do you do it REALLY fast ??
1) Cashflow, be it income or rental to service the debt.
2) Great competitive interest rates
3) Great strategy to use your cashflow the most effectively
4) A plan to make it happen
5) A regular review of your plan to ensure you remain on track”
Gaubert said that most people needed help to put this in place, so Iden Loan Services in conjunction with The Mortgage Planner Group had developed PowerSaver Mortgage for forward thinking Australians wanting to become “non tax-deductible debt free sooner.”
Power Saver Mortgage – calculate your savings !!
Download >> Just an Example (PDF)