All of our financial advisers are specialists in debt structuring advice, focusing on optimising the use of debt including paying down any non-deductible debt as effectively as possible, in particular the home mortgage.The strategies recommended by our advisers are highly effective, resulting in clients paying down their non-deductible home loans significantly faster than they would without the recommendations. This includes highly effective ‘debt recycling’ strategies, where we ‘recycle’ non-deductible debt into tax-effective deductible debt. These strategies work in concert with all other strategies the advisers have worked on to optimise each client’s overall outcome.A key consideration is the client’s ability to meet future loan obligations based on the plans they have.If for example a client plans to stop work and take extended unpaid maternity leave, we take this into consideration. We frequently have new clients come to us having taken out significant mortgages (because the bank said they could without really understanding the client’s needs) and who now have to reluctantly work harder/longer just to sustain the mortgage. Our planning includes interest rate sensitivity to ensure loans remain affordable even if interest rates rise. The current 2% interest rates on offer aren’t going to last forever and it’s important to note that even a 1% rise in interest adds 50% to your interest obligations.Taking the client’s debt strategy into account, our Finance Manager’s role is to identify the loan that best fits from the many lenders in the market. Factors taken into consideration include:
Ability to borrow what’s needed
Identifying which lenders offer the:
The lending process is onerous and getting a loan to the approval stage is a significant task. At times this involves approaching multiple lenders, doubling (or tripling) the amount of work required.As you can see from this list, there are many aspects we consider when determining whether a loan is right for you.5 Financial’s finance service is integrated with our broader wealth management advisory service.If you’d like to know more, please contact us.
This information is of a general nature only and is not intended as specific advice. Speak with your financial adviser to discuss your individual situation before taking action.