Boat Loans Australia :: Articles
SHARE

Share this article!

Why the best mortgage may be a simple mortgage

Why the best mortgage may be a simple mortgage

Home loans come in many different forms, each with a range of options … but are they just bells and whistles? Will they all actually benefit you? In this article we look at why having a no-frills mortgage might be better - and know if or when to take on extra options.

Mortgages come with a wide variety of options, what do you do?  It's simple.  Keep the mortgage very simple.  It will be easy to manage, set goals  (Im not kidding)   Often a complex mortgage will slow you down.

Rule #1

Start with the simplest mortgage and slowly add features to the mortgage.

There are many mortgage features to look at including:

  • Offset accounts
  • Splitting accounts
  • Fixed or variable
  • Interest only
  • Portability
  • Time to Refinance?
    If you are seeking lower rates, lower fees and more flexibility in your home loan. you are in luck! Our national panel of mortgage brokers is looking forward to an opportunity to assist you. Apply online for a free eligibility assessment and one of our broker network refinance specialists will get on the case to track down the best deal for your individual circumstances. Without any obligation and at no charge to you!
    No fees, some fee?
  • And many more

We always recommend that you contact a mortgage broker when looking at taking out a home loan so you can find out what options are available in your situation.

Before making any home loan recommendations, a mortgage broker will or should ask you to talk about yourself and lifestyle.

A mortgage should be tailored to the client, not the other way around. So, before suggesting what options may or not be appropriate to you, he or she will need to know:

  • whether you are employed or self employed, and details of your legal entity, if you are in a business.
  • how much money comes into the household each month
  • if you need to hold cash for periods prior to paying some bills
  • what level of profitability or take-home salary do you have
  • whether you are married, single or somewhere in-between
  • your financial position, including any pension funds, superannuation funds, investment property or other investments you may have
  • your financial goals over next 5 to 10 years
  • your personality traits ... are you a risk-taker, do you like to know all the details or are you a big picture thinker, etc

Only with that extent of information can the mortgage broker suggest a loan that might be suitable to you. Given that the standard variable loan works just fine for 90% of the population, why would you need other options in your mortgage?

Well, there are some circumstances where you may need to avail yourself of some of the following.

A Split Loan   (multiple accounts)

Partners in an investment may want to split the loans up for each partner. Each partner is then free to pay off their own portion of the loan at a pace that suits them.

That would make it much easier to apportion interest to each party and to keep track and account of who owes what on the mortgage than with a single mortgage loan account.

To achieve the same result with a single account mortgage, there would be a whole lot more accounting work required.

100% Offset Account 

If you have a business and need to set aside some funds over periods of time (e.g. for taxation, etc), you may want to set up one or more offset accounts to "park" these funds temporarily.

This would enable you to keep (and account for) the money separate to your personal mortgage commitment, whilst enjoying a period of reduced interest because the additional funds are sitting in the offset account. It makes accounting for the business money easy - and gives the you control over the various funds.

When looking at offset accounts, you should be aware of the tax implications. Your mortgage broker can explain these.

You should also be aware of any limits on the number or value of deposits and withdrawals. If the offset account has a withdrawal limit of $5000 per day, for example, it could prove more trouble than it's worth if you want to move larger amounts in and out of your mortgage balance.

Split loan mortgage accounts and offset accounts are just 2 of many options you may be presented with when applying for a mortgage.

If you need a mortgage that carries a low risk - and you don't want to bear the cost of add-ons that you don't need, your best bet is to talk to a mortgage broker.

The mortgage broker will ascertain your needs and then move forward. But always remember, a simple mortgage is a good mortgage.

Published:Friday, 27th Aug 2021
Author: 150

Share this article:

Home Loans
New home purchases, First Home buyers, Construction and Re-finance. Loans are available with low/no deposit. Free online loan eligibility assessment without affecting or accessing your credit file. Compare rates & options.

Boat Loans Articles

How to Get the Most Value for Your Money When Buying a Fishing Boat How to Get the Most Value for Your Money When Buying a Fishing Boat
Investing in a fishing boat can be an exciting and rewarding experience, but it's important to make sure you're getting the most value for your money. There are several key factors to consider when buying a fishing boat, including your specific needs, budget, and financing options. It's also important to research boat brands and negotiate the sale to ensure you're getting a fair price. - read more
Tips for Australians Seeking Boat Financing Despite a Low Credit Score Tips for Australians Seeking Boat Financing Despite a Low Credit Score
For many Australians, owning a boat is a dream come true. However, if you have a low credit score, obtaining financing for your dream boat can be a daunting task. A low credit score can make it challenging to secure traditional boat loans from banks or lenders. - read more
How to Avoid Capsizing Your Budget When Comparing Boat Loans How to Avoid Capsizing Your Budget When Comparing Boat Loans
The excitement of buying a boat and the role of right financing: The dream of sailing on the open seas or cruising through tranquil waterways can be incredibly enticing. The prospect of owning a boat opens up a world of adventure, relaxation, and luxury. However, much like navigating through uncharted waters, purchasing a vessel requires sound financial planning. Choosing the right boat loan is crucial in making this dream a reality without causing a financial shipwreck. - read more
How to Improve Creditworthiness and Increase Chances of Boat Financing Approval How to Improve Creditworthiness and Increase Chances of Boat Financing Approval
Are you dreaming of purchasing your dream boat but worried about getting approved for financing? Ensuring you have a good creditworthiness is essential when it comes to obtaining boat financing. In this blog post, we will explore the importance of creditworthiness in boat financing and provide valuable tips on how you can improve your creditworthiness to increase your chances of getting approved for boat financing. - read more
Expert Advice: What Lenders Look for When Approving Boat Financing Applications in Australia Expert Advice: What Lenders Look for When Approving Boat Financing Applications in Australia
When it comes to buying a boat in Australia, many enthusiasts turn to financing options to help make their dream a reality. Boat financing involves obtaining a loan from a lender to cover the purchase of your desired vessel. Whether you are a seasoned sailor or a first-time boat buyer, knowing what lenders look for during the boat financing application process can greatly increase your chances of approval. - read more
Setting Your Course: Fixed and Variable Rate Boat Loans Explored Setting Your Course: Fixed and Variable Rate Boat Loans Explored
The allure of the open waters is undeniable, and for many Australians, the dream of owning a boat is akin to the ultimate freedom. Whether it's for leisurely sails along the coast, fishing adventures, or simply the joy of the aquatic lifestyle, boats represent an escape from the everyday grind. However, the pursuit of this dream often comes with a significant financial consideration: boat loans. - read more

Finance News

Australia Gears Up for Comprehensive Financial System Resilience Assessment in 2025 Australia Gears Up for Comprehensive Financial System Resilience Assessment in 2025
27 Mar 2024: .Paige Estritori

The Australian Prudential Regulation Authority (APRA) is positioning itself to inaugurate a widescale diagnostic of the nation's financial heartbeat in the year 2025. This financial health check aims to meticulously analyze the repercussions of unanticipated events on the country's financial stability beyond merely scrutinizing the banking sector. - read more
Climbing Mortgage Arrears Signal Heightened Financial Strain Climbing Mortgage Arrears Signal Heightened Financial Strain
26 Mar 2024: .Paige Estritori

Australian households are navigating a more complex financial landscape as mortgage arrears have climbed to a peak not seen since the outset of the COVID-19 pandemic, according to a new report from Fitch Ratings. The Fitch's Dinkum RMBS index has indicated that, as of the last quarter of 2023, households are falling behind on mortgage payments more frequently, sparking concerns about financial resiliency amid ever-tightening economic conditions. - read more
New Investment Approach for Australian New Homebuyers New Investment Approach for Australian New Homebuyers
25 Mar 2024: .Paige Estritori

Recent statistics have highlighted a notable shift in the strategies Australian first-time homebuyers are using to infiltrate the challenging property market. Analysis of 2023's purchasing trends indicates an emerging investor mentality among new buyers. - read more
Rentvesting Trend: First-Time Buyers on the Property Ladder. Rentvesting Trend: First-Time Buyers on the Property Ladder.
24 Mar 2024: .Paige Estritori

New insights from financial data show an intriguing pattern among Australian first home buyers in the recent year, with investment-savvy superstars choosing to become landlords right from the start. A striking one in five opted to dive into the property market, not for immediate residence but investment potential in 2023, indicating a significant shift in home ownership approaches. - read more
Australia Braces for Economic Shift as Rate Cuts Loom Amidst New Challenges Australia Braces for Economic Shift as Rate Cuts Loom Amidst New Challenges
21 Mar 2024: .Paige Estritori

Rising tensions within various sectors of Australia's economy signal a possible series of interest rate reductions by the Reserve Bank of Australia (RBA). Significant indicators, including increased unemployment rates, forecast a shift in monetary policies possibly leading to a period of lesser rates as experts observe a pre-emptive response to economic stagnation under the current administration. - read more
Steady Rates Persist as RBA Eyes Inflation Moderation Steady Rates Persist as RBA Eyes Inflation Moderation
20 Mar 2024: .Paige Estritori

In a recent monetary policy review, the Reserve Bank of Australia (RBA) has upheld the current cash rate at 4.35%, indicating a possible plateau in monetary tightening. This update aligns with widespread market analyses and fuels conversations about potential rate reductions in the coming year. - read more


Knowledgebase
Personal Loan:
A personal loan is a loan provided to an individual or individuals (as opposed to a business) and that can be generally be used for a variety of purposes subject to the approval of the lender.


Quick Links: | Boat Loan Rates | Boat Loan Brokers | Boat Loan Calculators | Boat Loan Quote