March 23, 2016
Financial tips to protect your home and super this Easter
For many Australians, the Easter long weekend provides the opportunity to have some much needed down time.
But with interest rates sitting at record lows, and ongoing speculation that superannuation changes are afoot, the Easter long weekend also opens up the perfect opportunity for borrowers to spend some time focusing on their financial situation and looking for ways to protect their nest egg.
Local Mortgage Choice franchise owner Rhye Livingstone said one ‘nest egg’ that Australians should focus on this Easter long weekend is their property.
“Given that interest rates are currently sitting at record lows, there has never been a better time for homeowners to pay down their property debt,” he said.
“Making additional home loan contributions not only gives borrowers the chance to reduce the interest they will pay on their loan, but it helps them to own their property and improve their financial position faster.”
Of course property isn’t the only nest egg Australians should be looking to protect this Easter.
“When we talk about the need for Australians to protect their nest egg, we aren’t solely referring to property,” Mr Livingstone said.
“It is also important for Australians to review their broader financial situation - including their superannuation - on a regular basis.
“At the end of the day, a person’s superannuation is the money they will live on in retirement, so it is important for them to take the appropriate steps to give their super a boost.
For any Australian who wants to use the Easter long weekend to review their financial situation and make sure their nest egg – including their home and superannuation – is not only well protected, but has the ability to grow and flourish, Mortgage Choice offers the following tips.
Overpay the mortgage
One of the best ways for Australians to protect their home is to pay off their debt faster. And, with interest rates sitting at historical lows, now is the perfect time to contribute additional funds to a mortgage. Contributing an additional $100 a month can not only help a homeowner save thousands of dollars in interest over the life of their loan, but it can significantly slash the loan term period. Even one-off extra repayments can make a significant difference to the length and overall cost of a home loan.
Give super a boost
In addition to borrowers overpaying their mortgage where possible, making salary sacrificed super contributions offers Australians a simple way to save on tax and build wealth. Salary scarified super contributions allows Australians to pay part of their before-tax salary into their super rather than taking the money as cash in hand. These contributions are taxed at 15%, which is likely to be below a person’s marginal tax rate (which could be as high as 46.5%), so more money goes towards growing their super rather than paying the tax man. Up to $25,000 annually can be added to super through pre-tax contributions ($35,000 if aged 60-plus). This limit includes an employer’s compulsory contributions.
Insure major assets
Finally, given that a person’s income is their biggest asset, it makes sense to protect it. While the majority of superannuation funds offer some level of income protection cover, this cover is often not adequate. According to Mr Livingstone, it is important for Australians to do their due diligence and make sure whatever income protection insurance they currently have is adequate. If it isn’t, it is vital that they do something about it, before it is too late.
“In the same way that it is important for Australians to properly insure their vehicle in the event that unforeseen circumstances arise, it is also vital for Australians to properly insure their income,” Mr Livingstone said.
“Over this Easter long weekend, Australians should take the time to review their financial situation. A local mortgage broker or financial planner can help people make their money work harder and ultimately achieve their financial goals sooner.”
If you would like learn more about your home loan or financial advice options, call 0459 958 893 or visit https://www.mortgagechoice.com.au/rhye.livingstone
For further information or to arrange an interview, please contact:
Mortgage Choice Frankston
Ph 0459 958 893
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
About Mortgage Choice
Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.
Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.
Since that time, the company has grown and developed into a fully fledged financial services provider.
Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.
Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.
Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Recent recognition: 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.