0427 548 871 michael@bcfin.com.au

A proactive approach to managing your mortgage can help steer you through a tough environment.
With the price of the average home seemingly beyond reach, most would-be home buyers feel like the odds are stacked against them when it comes to purchasing a home.
Buying your first home or investment property is still possible- all it takes is a little time, mortgage know-how and the commitment to managing your finances.
So what does this mean for you and your mortgage? There are a range of different mortgages now available from numerous lenders. Switching products to better suit your financial situation, could potentially save thousands of dollars in interest repayments and take years off the life of your loan.
For example, you may want to switch to a lower variable-rate mortgage with fewer features, or lock into a fixed-rate mortgage where you’ve got certainty in repayments each month. Breaking the terms of your current mortgage can be expensive however, so you’ll need to check that you’ll come out ahead when all costs are considered.
Moreover, if you have other debts that are impacting on your ability to meet your mortgage commitments, you may even consider consolidating all your debts into one easy monthly repayment.
Consolidating debts, such as credit cards or personal loans, into your home loan can mean paying an overall lower interest rate, and also in turn help improve your cash flow.
And cash flow is an important consideration when it comes to your mortgage. While it can be a very effective strategy, refinancing your home loan is not the only option that’s available.
A number of simple tactics can help you against significant changes to your financial situation. These include
• Setting a budget: Work out your expenses, fortnightly or monthly, and factor in your mortgage repayments. You might need to cut back on spending in places to make sure your mortgage is a priority. Keep a diary of your spending and stick to your budget.
• Cutting your debt: Reduce the number of credit cards you have (ideally down to one) and their credit limits, and only use them sparingly. Having a mortgage means taking control of your spending.
• Arranging a direct debit: Arrange for your mortgage repayments to be direct debited from your pay, so you always make them on time.
Remember, if you feel you’re struggling to meet mortgage commitments it’s best to act now, rather than let the problem spiral out of control. Speak with us today to explore how you can better manage your mortgage we have a number of resources we can point you in the direction of which have helped many.