Important Home and Investment Loan Alert

March 11th, 2009  |  Posted in General

Interest rates for home and investment loans have dropped dramatically in the last few months. We have seen extreme volatility in financial markets over this time and governments around the globe are working to ease liquidity issues in the markets. This is really good news for borrowers, at least for the time being.

Now is the right time to review your finances and in particular, pay attention to all your borrowings since credit and finance is likely to get harder to get with many lenders already tightening their policies.

Looking for improved cashflow? Let's take a look at your finance arrangements...

Many people are surprised to discover how the wrong finance arrangements can cost them dearly. Especially in these volatile times, when cashflow is critical and rates are unusually low we encourage you to look at the following:

• Review your home loans and ensure that you are getting the best rates. Interest rates have dropped significantly and if your lender has not passed on all of the rate cuts to you then you could be paying up to 2% more on your home loan.
• Get rid of credit card, personal loans and all other debts that attract higher rates of interest than a home loan by consolidating these debts with your home loan.
• Prepare a budget of your cash flows and if necessary, consider switching to interest only for a period of time.
• Stay with the big lenders as they are committed to the Australian economy and are well positioned to offer attractive interest rates and terms. They are also the ones with more 'tolerance' to potential credit issues in the current climate.
• Look at your margin loans and consider consolidating these with your home loans to eliminate margin calls and reduce your interest costs.
• Be prepared for the interest rates cycle to bottom out in the coming months and then consider fixing your rates.
• Ensure you are getting the maximum tax deduction on your investment loans and in particular, review the possibility of a 'debt recycling' strategy to convert the 'bad debt' to 'good debt'
• Apply now for that extra 'buffer' that you may need for a rainy day. With a forecast of tougher economic times ahead, along with falling property values, an increase in loan facilities may be harder in future. So now is a good time to review your finances and apply for a higher loan with a view to having some funds for back-up in case you need that in the future.
• If you have business or commercial loans then look at the possibility of refinancing these at lower residential interest rates.

A present we have access to extremely attractive loans offering variable rates from 5.04% and fixed rates from 5.19%. We are committed to assisting you and as advised in our previous publications and presentations, we now have a highly experienced and professional team of mortgage brokers led by Pankaj Sawjani, CPA and Registered Tax Agent.

If you are interested in a free no obligation review or discussion of your finances, please contact us on 07 3031 9937, freecall 1800 000 369 (option 4) or email us - finance@freemanfox.com.au.

Freeman Fox Finance Australia is a business division of Freeman Fox Ltd (ABN 17 010 763 041), the holder of an Australian Financial Services licence (AFSLN 246510).  This general advice is provided by Freeman Fox Ltd. It does not take into account your investment objectives, financial situation, or needs. You should consider the appropriateness of this advice having regard to these matters.

While information in this email is given in good faith and is believed to be reliable and accurate, Freeman Fox gives no warranty as to the reliability of accuracy of the information, nor accepts responsibility for any errors or omissions of third parties.
If you require assistance in relation to your personal investment situation please contact a representative of Freeman Fox Ltd on 1800 000 369.  For a copy of our Financial Services Guide, please go to http://www.freemanfox.com.au.