How it works - stepping you through the simple process
Our simple process to help you master becoming debt-free faster!
Your home is likely to be one of the biggest purchases you are ever going to make and for most of us, it starts out as our biggest debt too. Do we simply accept that and slowly pay it off in the traditional way or can we apply a smarter way of thinking to pay it off quicker without actually paying more money towards it?
There is a smarter way!
The second law of Parkinson:
"The more money you earn, the more money you spend."
You need to break this law to get ahead financially.
Our purpose is to establish a long term relationship and help you reach your financial goals.
We do this by helping to structure your home loan unique to your personal situation with a view to reducing interest payable and hence having the ability of becoming debt-free faster, plus we review the structure in a timely manner each subsequent year as your fixed components come to term.
We make it easy!
How can we save you money?
We often focus on interest rates as they pertain to our loans, which is an important consideration, but even more important is the structure behind the loan and the rate at which you pay it off.
Would you prefer getting a good interest rate discount for the next 30 years off the payment of your home loan or being in a position to pay off your loan sooner, say in 15 years without paying more?
Can you have both?
YES! Talk to us today
A variable loan account is handy in that it allows for flexibility and for income and savings to reduce the debt until you use your money. This helps reduce the amount of interest payment due as the account only charges interest on the current outstanding balance, calculated on a daily basis. However, the rate is usually higher than fixed rates and it can change anytime, up or down.
With a fixed term loan, the interest rates are only for a fixed period of time (usually between 6 months and 5 years) and allow you to have certainty of the amount payable for the given period. The drawback is that this type of structure affords you only a little bit of flexibility before a penalty is applied, and, if interest rates go down, your rate remains. Also, if there have been significant changes of interest rate movements over the rate term, once the term comes to an end,
there can be a significant impact on your budget.
Your structure is over the life of your loan, which might be for the next 30 years, but we all experience life changes and changes to our financial situation.
To have a plan that lasts for the next 30 years is nearly always an exercise in futility.
So at Masters Home Loans, we have introduced a cascading effect. We make provision for life changes and review these provisions annually to ensure that the structure is kept current to your changing needs.
How do we help you?
We negotiate with lenders for the best deal we can get and then we use an active management approach and apply a “Split Loan” structure whereby some of the loan is placed in a variable rate account and some is placed in various fixed rate accounts, depending on your needs and objectives, and at the same time reducing the budgetary impact of interest rate movements.
Upon review and as each fixed period comes to an end, we tweak the variable amount payable for the next period of time taking into consideration your past year’s expenses and next year’s expected income and expenses, as well as any new goals, objectives and developments.
Our specialised process helps make every cent work for you!
The steps we take you through to make it a simple, quick and painless process!:
Step 1. You contact us and we listen to what your specific situation and individual requirements are
Step 2. To provide a free appraisal we need some details from you. The detail here means we can be thorough in reviewing your situation and allows us to make the most comprehensive recommendations to you.
We call this a Fact Find which includes:
• Your name and address details
• Your employment details, income and expenses, assets and liabilities
• Current banking and mortgage situation (if any)
• Financial goals and requirements
• Permission from you, for us to provide advice
Step 3. We then use a system to analyse your information, to assess if you meet a selection of key Banks/Mortgage providers criteria
Step 4. With your agreement, we then approach the lender of choice to apply for a Pre-approval or Bank Offer
Step 5. Once the Banks' Offer is received, we notify you and if you agree, we approve in principle on your behalf and negotiate discounted rates and cash contributions
Step 6. Once you accept these, we then develop a structure to discuss and agree with you
Step 7. We implement the agreed strategy with the Bank, Solicitor and yourselves, making the process simple and easy for you
Step 8. You receive a summary report which documents your strategy and structure with benefits and risks
Step 9. We review your strategy prior to any fixed portion coming up for review, making any recommendations for change if necessary