Perth Archives - Atelier Wealth

Many clients experience the excitement of buying their own home and then get into the habit of simply paying their mortgage down monthly. There is nothing wrong with this, but the mentality of ‘set and forget’ is where banks tend to make money from complacent customers. When was the last time your bank called to let you know you could actually pay down your home loan faster, or that you were entitled to a lower interest rate?

This example looks at clients who were guilty of ‘setting and forgetting’ their mortgage.

The Situation

The couple with their two children moved into their dream family home four years ago
They had their 20% deposit and went back to the bank they had used for the last 8 years
Since buying their home, they made their monthly repayments while continuing to maintain a balanced lifestyle of regular holidays, paying school fees, and a recent new car purchase.

The Opportunity

After a chance conversation with a colleague at work, the client realised their interest rate was 0.75% higher than the colleague’s rate
On their $600,000 home loan, this meant the difference was $265 per month between their current repayment and the lower interest rate
The client also realised they were paying an annual fee and monthly fees for their transaction accounts as well as a credit card fee.

The Outcome

Not only did the client and her husband switch to a more competitive home loan, they received a sharper interest rate as well
They now saved over $300 per month, which works out to be $3,600 for the first year alone
We structured their home loan to use the benefits of an offset account more effectively, which in turn saves even more interest in repayments per month
We changed their repayments to fortnightly and increased each repayment to assist them pay down their mortgage faster
With an estimated saving of $3,600 they are on track to pay down their home loan in 20 years rather than the standard 30-year term, which will significantly save on interest paid over the life of the loan.

To learn how you could save more each month by having the right structure in place for your home loan, please get in touch. We would be happy to help you.

The Situation

The Opportunity

The Outcome

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