Home' Navy News : June 10th 2010 Contents Finding it
hard to help
your people with
This film will help you.
Watch the video or order the DVD on the website
ADF Financial Services Consumer Council
June 10, 2010
GEE IN POSES
costs you can cut.
If you make fortnightly repayments
rather than monthly you make the
equivalent of 13 monthly payments
each year instead of 12.
Fortnightly repayments can cut
four years and a staggering $40,000 in
interest payments off a 20 year home
loan of $200,000.
If you can pay an extra $100 above
the minimum repayment fortnightly,
you will cut seven years off your loan.
This will free up money significant-
ly to grow your investment portfolio
down the track.
By switching home loans you could
save yourself thousands of dollars in
interest or take advantage of features
offered by another loan.
Before you decide to leave your
current loan, work out how much it
will cost you to switch to a new home
loan. Your current lender might charge
you exit fees and a new provider might
charge you start fees.
Work out whether reducing your
interest rate with a new loan outweighs
the costs of switching from your exist-
ing one. The lower the exit and start-
up fees, the more you stand to gain by
switching. If the fees are high it may
not be worth switching or may be bet-
ter to wait and switch later.
Talk to your lender
If you are struggling to make your
next home-loan repayment, you should
talk to your lender as soon as possible.
All retail banks, building societies and
credit unions have signed up to the
Government's principles to assist peo-
ple in financial difficulty.
If you're feeling stressed about your
home loan you can also talk to a finan-
cial counsellor. They can give you free
and independent personalised advice
about the best thing for you to do.
Go to www.fido.gov.au/survivalguide for more
information, practical tips and useful links to
help you through tough financial situations.
Visit ASIC's consumer and investor website,
FIDO, at www.fido.gov.au or call 1300 300
630. Email ASIC with topics that interest you to
The last thing you want is to lose your home.
ASIC Chairman Tony D'Aloisio says review
your mortgage options regularly.
THERE'S nothing like going
home after a long day and
putting your feet up for
some well-deserved rest.
Our homes are a sanctuary from the
outside world and, for most of us, our
home is our most valuable asset.
Interest rates rose recently, so it is
important to remember the essential,
practical things you can do to manage
your home loan.
If you are having problems meet-
ing your mortgage payments, putting
your head in the sand and ignoring the
problem is the worst thing you can do.
It could lead to you losing your home.
There are steps you can take to help
you manage -- whether meeting your
repayments is just a little difficult or a
Do a budget
You've heard it time and time again
because it really is the best thing you
can do for your personal finances. But
don't think of it as being a budget --
think of it as a 'spending plan'.
Spending plans allow you to free
up your money so you can spend it on
something really worthwhile.
It doesn't matter whether you're
saving for the short, medium or long
term, the way to find extra money is by
having a plan.
A great place to start is the free
online budget planner at www.
ADFconsumer.gov.au to see what
There are things you should do
if you're considering switching:
Shop around and compare
loans from at least three
home loan providers
Work out all the costs
Compare interest rates, fees
Ask yourself if the benefits
of switching are worth the
Go to www.fido.gov.au/
switching for more details
Four options for assistance the
banks can offer include:
Postponement for up to 12
months on repayments
A longer contract with lower
Making interest only repay-
ments for a short period of
Do I switch or ask
for more time?
VALUABLE ASSET: Don't let your home come crashing down around
Photo: LAC Aaron Curran
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