Page 31 - The-Mortgage-Maximiser-Method-by-Thomas-Ilinkovski

ƉƉůLJŝŶŐ ĨŽƌ Ă ƉƌĞͲĂƉƉƌŽǀĂů

dŚŝƐ ŝƐ ƚŚĞ ŝĚĞĂů ƟŵĞ ƚŽ ĐŽŶŶĞĐƚ ǁŝƚŚ LJŽƵƌ ŵŽƌƚŐĂŐĞ ďƌŽŬĞƌ ƚŽ ĂƐƐĞƐƐ ƚŚĞ
ŽīĞƌƐ ĂǀĂŝůĂďůĞ ƚŽ LJŽƵ ĂŶĚ ǁŚŝĐŚ ŽŶĞƐ ďĞƐƚ ŵĞĞƚ LJŽƵƌ ŶĞĞĚƐ͘ dŚĞƌĞ ĂƌĞ
ƚǁŽ ŵĂŝŶ ƚŚŝŶŐƐ LJŽƵ ŶĞĞĚ ƚŽ ĐŽŶƐŝĚĞƌ ǁŚĞŶ ĂƉƉůLJŝŶŐ ĨŽƌ Ă ƉƌĞͲĂƉƉƌŽǀĂů͘
dŚĞƐĞ ĂƌĞ͗

1. Loan types

There are many ĚŝīĞƌĞŶƚ ƚLJƉĞƐ ŽĨ ůŽĂŶƐ ŽŶ ƚŚĞ ŵĂƌŬĞƚ ďƵƚ LJŽƵ ŵŝŐŚƚ ŶŽƚ ďĞ
ĞůŝŐŝďůĞ ĨŽƌ Ăůů ŽĨ ƚŚĞŵ͘ ƚ ƚŚĞ ƉƌĞͲĂƉƉƌŽǀĂů ĂƉƉůŝĐĂƟŽŶ ƐƚĂŐĞ͕ LJŽƵ ŶĞĞĚ ƚŽ
ŚĂǀĞ ƐŽŵĞ ŝĚĞĂ ŽĨ ǁŚĂƚ ƚLJƉĞ ŽĨ ůŽĂŶ ǁŝůů ƐƵŝƚ LJŽƵƌ ĮŶĂŶĐŝĂů ĐŝƌĐƵŵƐƚĂŶĐĞƐ͘
^ĞĞ ďĞůŽǁ ĨŽƌ Ă ĚŝƐĐƵƐƐŝŽŶ ŽĨ ĚŝīĞƌĞŶƚ ůŽĂŶ ƚLJƉĞƐ͘

2. >ĞŶĚĞƌ͛Ɛ ƉŽůŝĐLJ ĂŶĚ ůĞŶĚŝŶŐ ĐƌŝƚĞƌŝĂ

/Ĩ LJŽƵ͛ƌĞ ůŽŽŬŝŶŐ ƚŽ ďƵLJ Ă ƐŵĂůů ĂƉĂƌƚŵĞŶƚ ;ƵŶĚĞƌ ϱϬ ƐƋŵͿ ƚŚĞƌĞ͛Ɛ ŶŽ point

in applying ĨŽƌ Ă ƉƌĞͲĂƉƉƌŽǀĂů ĨƌŽŵ Ă ďĂŶŬ ƚŚĂƚ ĚŽĞƐŶ͛ƚ ůĞŶĚ ĨŽƌ ƉƌŽƉĞƌƟĞƐ
ŽĨ ƚŚŝƐ ƐŝnjĞ͘ ^ŝŵŝůĂƌůLJ͕ ŝĨ ƚŚĞ ůĞŶĚĞƌ ŶĞĞĚƐ ƚŽ ƐĞĞ ƚǁŽ LJĞĂƌƐ͛ ǁŽƌƚŚ ŽĨ ƉĂLJƐůŝƉƐ͕
ďĂŶŬŝŶŐ ƌĞĐŽƌĚƐ ĂŶĚ ƐĂǀŝŶŐƐ ĂŶĚ LJŽƵ ĐĂŶ ƐƵƉƉůLJ ŽŶůLJ Ɛŝdž ŵŽŶƚŚƐ͛ ǁŽƌƚŚ͕
LJŽƵƌ ĂƉƉůŝĐĂƟŽŶ ǁŝůů ďĞ Ă ǁĂƐƚĞ ŽĨ ĞīŽƌƚ͘ ^ĞĞ ďĞůŽǁ ĨŽƌ Ă ďƌĞĂŬĚŽǁŶ ŽĨ
lending criteria.

Common loan types

dŚĞƌĞ ĂƌĞ ĚŝīĞƌĞŶƚ ůŽĂŶ ƚLJƉĞƐ ƚŽ ĐŽŶƐŝĚĞƌ͕ ŝŶĐůƵĚŝŶŐ͗

• Variable ʹ /ŶƚĞƌĞƐƚ ƌĂƚĞƐ ǁŝůů ƌŝƐĞ ĂŶĚ ĨĂůů ǁŝƚŚ ŵĂƌŬĞƚ ĐŚĂŶŐĞƐ͘

• &ŝdžĞĚ ʹ /ŶƚĞƌĞƐƚ ƌĂƚĞƐ ĂƌĞ ůŽĐŬĞĚ ŝŶ ǁŚĞŶ ƚŚĞ ůŽĂŶ ŝƐ ĂĐĐĞƉƚĞĚ ĂŶĚ
cannot change for the period during ǁŚŝĐŚ ƚŚĞ ůŽĂŶ ŝƐ ĮdžĞĚ͘

• Split ʹ zŽƵ ŚĂǀĞ ƚŚĞ ŇĞdžŝďŝůŝƚLJ ŽĨ ŬĞĞƉŝŶŐ ƉĂƌƚ ŽĨ LJŽƵƌ ůŽĂŶ ŽƉĞŶ ƚŽ
ǀĂƌŝĂďůĞ ŝŶƚĞƌĞƐƚ ƌĂƚĞ ŵĂƌŬĞƚ ĐŚĂŶŐĞƐ ĂƐ ǁĞůů ĂƐ ĮdžŝŶŐ Ă ƉŽƌƟŽŶ ŽĨ
the loan for certainty of repayment amounts.

• Honeymoon – The interest rate is much ůŽǁĞƌ ĨŽƌ Ă ƉĞƌŝŽĚ ĂŶĚ ƚŚĞŶ
the interest rate reverts to the higher rate once the Honeymoon

period is over.

• Line of credit – You pay all your income into your mortgage account
ƚŽ ƌĞĚƵĐĞ ƚŚĞ ŵŽƌƚŐĂŐĞ ĂŵŽƵŶƚ͕ ĂŶĚ ƉĂLJ LJŽƵƌ ĚĂŝůLJ ĞdžƉĞŶƐĞƐ ŽƵƚ ŽĨ
this account.

tĞ ĐŽǀĞƌ ůŽĂŶ ƚLJƉĞƐ ŝŶ ŵŽƌĞ ĚĞƚĂŝů ŝŶ ^ĞĐƟŽŶ Ϯ͘

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