Page 55 - Smart Money

Smart Money

Key Point

There is another benefit to paying that little bit extra – let’s just say that

your principal and interest repayment is $500 a week. You can increase
that with the bank and make it $550 a week. So then you are eff ectively
saving $200 a month without even knowing about it, because it just
comes out with the repayment.

When it comes to home loans, one size doesn’t fit all. Make sure you
choose a loan with the features and benefits that are right for you. We can
recommend a loan for your particular needs – and take care of all the
paperwork. When you’re ready, talk to us to discuss next steps.

How to get ahead

Who is going to provide for your future if you haven’t got your house
paid off and have investments and enough super? Is there going to be a
pension? Is it going to be enough? Maybe?

You might not get a pension when you are older, so that is something that
you need to think about. Superannuation? Will that be enough to support
you moving forward? If you don’t think it will be, then you need to put
extra money into your super, which most people don’t think about,
because they only think about today.

Will the family home be big enough? If you are paying extra on your
mortgage, you are building equity quicker. You might only have one child
now, but moving forward you might have two or three. If you are making
extra repayments on your house, you will build equity quicker, so then
you have options if the house does get too small, and you can move on
and buy something else. Otherwise, you could be stuck in the same small
house and just have to live with it because you don’t have enough equity.

Also, how will you support your family in the future? Are you always
going to work? When do you want to stop working? You need a financial
plan that says, “Right, by the time I’m 55, I’m going to stop working and

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