What If You Could Become Mortgage Free Years Sooner?

We help homeowners explore more efficient ways to structure and manage their mortgage and household cash flow, with the objective of becoming Mortgage Free sooner.

Our approach starts with understanding an important principle:

Mortgage interest is generally calculated daily on the outstanding loan balance and charged periodically.

That means the structure of your lending, where your income and available cash are held, and how money moves through your household finances can all matter.

We analyse your mortgage, income, expenses, assets, liabilities and existing banking structure to identify opportunities to potentially make your overall financial structure more efficient.

The objective isn't simply to put more money into your mortgage. It's to make the money you already have work more effectively.

A traditional mortgage is commonly structured around making scheduled principal-and-interest repayments over a long loan term.

We look beyond the scheduled repayment.

We examine how your mortgage interest is calculated, how your income enters and moves through your household, where available cash is held, how everyday expenses are managed and whether your existing loan structure is helping or hindering your Mortgage Freedom objective.

Depending on your circumstances, a more efficient structure may potentially reduce the effective interest cost of your mortgage and accelerate your pathway towards Mortgage Freedom.

It's about financial structure and cash-flow efficiency — not simply making bigger mortgage repayments.

This is one of the most important concepts behind our strategy.

Australian home-loan interest is commonly calculated daily based on the relevant outstanding loan balance and then charged to the loan periodically.

That means what happens to your money throughout the month can matter.

If an appropriate loan and offset structure is established, money sitting in an eligible offset account may reduce the amount against which mortgage interest is calculated.

Rather than allowing income and available cash to sit elsewhere without affecting the mortgage interest calculation, we assess whether your cash flow can be structured more efficiently.

Small daily differences can potentially compound into meaningful differences over time.

Because an eligible 100% offset account can allow your money to perform two jobs at once.

Your funds generally remain accessible to you, while the eligible balance held in the offset account can reduce the amount of your linked mortgage on which interest is calculated.

For example, if an eligible mortgage balance were $800,000 and $50,000 were maintained in a 100% offset account, interest would generally be calculated as though the relevant balance were $750,000, subject to the particular loan and offset terms.

The important issue, however, isn't simply having an offset account.

It's understanding how to use it effectively as part of an overall cash-flow and lending strategy.

Because the cheapest interest rate doesn't necessarily tell you whether your overall mortgage structure is the most effective for your circumstances.

We consider the broader picture, including:

• Loan structure
• Interest rate
• Principal and interest versus interest-only arrangements where appropriate
• Offset facilities
• Household income
• Available cash flow
• Existing debts
• Banking arrangements
• Financial objectives
• The way money moves throughout the month

Where an alternative lending structure may be appropriate, the potential benefits, costs, risks and suitability need to be assessed carefully.

The objective is to create an efficient structure around your circumstances — not simply change loans for the sake of refinancing.

Not necessarily — and that's one of the key principles behind our approach.

Before asking, “How can you pay more?”, we ask a different question:

“Can the money you're already earning be working more efficiently?”

We analyse how your existing income and household cash flow interact with your mortgage.

There may be opportunities to improve efficiency by changing where income is held, how expenses are managed, how available cash interacts with your mortgage and how your overall lending structure is configured.

Good financial discipline remains important, but our objective isn't to build a strategy that depends on an unrealistic lifestyle.

We want your existing money working harder before asking you to work harder for more money.

No — and we believe it's important to be completely clear about that.

Every household is different.

Your potential outcome will depend on factors including your:

• Mortgage balance
• Interest rate
• Loan structure
• Household income
• Living expenses
• Existing debts
• Available cash and savings
• Financial behaviour
• Lending eligibility
• Personal circumstances

That's why we don't believe in promising everyone the same saving or the same Mortgage Freedom date.

We model the opportunity around your numbers and your circumstances.

That's exactly what our assessment is designed to determine.

We analyse your current mortgage and financial position and compare it with potential alternative structures and cash-flow strategies.

This allows us to help you understand:

1. Where you are today
2. How your current mortgage is structured
3. How your money currently flows
4. Where potential inefficiencies may exist
5. What an alternative structure could potentially look like
6. Your potential pathway towards Mortgage Freedom

Rather than asking you to believe in a generic strategy, we want you to understand what the numbers may look like for you.

The Debt Chain is our methodology for looking at your finances as one interconnected system rather than a collection of unrelated accounts.

Your mortgage, income, offset account, everyday spending, other liabilities and available cash flow all interact.

We analyse how money enters that system, where it sits, when it leaves and how efficiently it is being used.

The objective is to identify opportunities to structure that financial chain so that your money is working towards reducing the effective cost and duration of your mortgage wherever reasonably possible.

Put simply:

It's not only about how much money you have.

It's about how efficiently that money is working.

No. Our service is designed around implementation, monitoring and ongoing support.

Creating the strategy is only the beginning.

We help clients understand the structure, implement the agreed strategy, monitor their progress and remain accountable to their Mortgage Freedom objective.

Where circumstances change — income, expenses, interest rates, lending arrangements or other relevant factors — the strategy may also need to be reviewed.

We're not focused on completing a short-term program. We're focused on helping you remain on the pathway towards becoming Mortgage Free.

That's the question we ultimately want to help you answer.

But we don't believe in giving you a generic number before we understand your financial position.

The potential difference can depend on your mortgage, interest rate, loan structure, income, expenses, available cash flow and how consistently an appropriate strategy can be implemented.

That's why we start with your actual numbers.

We'll assess your existing position and model what may be achievable under an appropriate alternative strategy.

Don't ask, “Does this work for everyone?”

Ask, “What could this potentially mean for my mortgage?”

That's what your Mortgage Freedom Assessment is designed to help you discover.