A lower interest rate can potentially reduce the amount you pay on your mortgage repayments and may results in getting your loan paid off faster. A good credit standing doesn’t usually guarantee you of a low interest rate as you need to shop around to find competitive rates. Consulting a finance broker to help you with this is always a good way to go. Banks and lenders have their varying measures in assessing the risk a borrower poses. Knowing what you can do to qualify for a low interest rate is a helpful way to save yourself from potentially paying too much.

Here are some tips to help you land a low interest rate for your home loan:

Check your credit report.

This particular tip is something all lenders will look at. Ideally, your credit report should be free of bankruptcy and/or other serious delinquencies. Dispute any information on your credit report that you deem inaccurate. To request a copy of your credit report, visit Equifax website (formerly Veda). However, you have also to take note that multiple and consecutive inquiries on your credit report may hurt your home loan application. If you have too many inquiries on your credit report, a lender may think that you are having trouble obtaining credit making you a high lending risk. In that case, the lender could charge you a higher interest rate.

Research current home loan interest rates.

You know what they say, knowledge is power. The more you know, the more ways you can think in landing that low interest rate. Check the interest rates offered by various lenders and non-lenders.

This will give you an idea on whether you’re paying too much in terms of interest, and can give you a good bit of bargaining power if you show that you know what you’re doing. Make sure you look for loan rates that are at or below the market average. On the other hand, if you wish to avoid this hassle, seeking the help of a finance broker can give you the same advantage.

Ask and you shall receive.

When all else fails, consult a finance professional. But while you’re at it, contact your current lender. There are lenders who tend to offer their new customers discounted rates and special deals that existing customers don’t get. The most effective approach you can do is to prove your loyalty to them. Maximise the fact that you’re paying your repayments on time. You have nothing to lose and much to gain by enquiring about a lower interest rate. Call your lender stating that you have found a better offer from a competitor (even if you haven’t). Negotiating for an interest rate that’s just 0.25% lower than your existing rate can potentially save you a significant amount of money over the duration of the loan.

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How to Get a Low Interest Rate appeared first on Soul Finance Group.

What do negative interest rates mean

When you apply for a home loan, your interest rate will dictate how much will you pay your lender. On the other hand, if you have money in your savings account, the interest rate will determine how much will your money earns. Negative interest rates are usually introduced when a country’s economy is experiencing low or negative growth, unemployment is too high, wages aren’t going up, people aren’t spending money and prices aren’t increasing. Then, the central bank will take steps in encouraging consumers to borrow and spend more.

Negative Interest Rates

Interest rates are usually positive, meaning people earn interest on their savings and have to pay it when they borrow. But with negative interest rates (financial institutions apply to people borrowing money or putting it in savings fall below zero), instead of gaining interest on amounts left in your bank account, you actually lose money. And when you borrow money from a lender, instead of paying the interest rate, you will actually get paid.

Who will benefit and who will suffer

The primary ‘winners’ for this potential negative cash rate are Australians looking at securing a loan. Lower interest rates mean less interest to pay back on money borrowed from lenders. Negative interest rates could mean a bank paying you to borrow money from it. Tourists in Australia can also benefit from this since lower interest rates can weaken the currency. Buying Aussie dollars could become cheaper for them.

Potential ‘losers,’ on the other hand are savers and retirees. A negative interest rate means losing money if you have funds in a savings account. Pensioners can also be negatively affected by negative rates especially those who depend on income from savings accounts or term deposits.

When can I get the money?

Before you’ll see any money earned on your home loan, the RBA would first need to decree the negative interest rate policy. Once that happens, commercial banks would then need to update their policies and then apply it to existing customers.

Source: Lifehacker article

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post What Do Negative Interest Rates Mean appeared first on Soul Finance Group.

How to maximise falling mortgage rates

The Reserve Bank of Australia (RBA) had a back-to-back interest rate cut this year, setting the cash rate at a record low of 1.00%. Lenders had started applying the cut to their variable home loans. This is good news for Aussies with mortgages because this means borrowing large sums of money becomes cheaper.

If you are having hard time keeping up with the falling mortgage rates and thinking of the best step to make the most out of these cuts, here are some tips:

Refinance to a lower interest rate

It’s always worth checking and comparing the deals available in the market. Hundreds of products are being offered by many lenders out there. Shop around and see if your bank can match the deal you have found. As a mortgage broker, I can help you find the most suitable deal for your current situation and help you switch to it.

Make extra repayments

Lower rate means lower repayments. The money you can save from it can be spent on electricity bills or groceries. However, if you wish to get out of debt faster and save yourself from more interest in the long run, don’t change a thing. Just keep paying the same monthly repayment and this will now count as extra repayments.

Save for the future

While current rates keep getting low, there is no assurance that there won’t be any rise in the future. Keep the money and create a buffer savings when your repayments increased.

The takeaway

To fully take advantage of the falling mortgage rates, you need to know what your home loan interest rate is. You can always pick up the phone and ask your lender or mortgage broker about it. Take advantage of the hundreds of deals in the market that you can compare and see what will fit your current situation.

If you are a busy person and don’t have much time to do all of these, feel free to give me a call on 0408 081 082. I can conduct a complimentary home loan health check and advise you on the steps we can take to fully maximise the current interest rates that will work for your financial situation.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How to Maximise Falling Mortgage Rates appeared first on Soul Finance Group.

Toni Coates, owner of The Coat Box

The idea of decluttering and reorganising comes with the New Year. Removing the clutter from your home and organising your life can leave you with an environment filled with things you love and you actually use. For some of us, it somehow gives us a clean slate to start with and the idea that something is truly working for you.

Whether you have been inspired by Feng Shui, minimalism or the recent trend, the “KonMari method,” learn a thing or two from a Perth Girl boss herself:

What is ‘The Coat Box” all about? (What’s your inspiration for your business name?)

The Coat Box is a Professional Organising Business. I help people declutter and organise their homes or areas in the home where clutter and disorganisation is causing my clients stress or anxiety, or physically impeding the use of space in the home. The Business name I must admit is a little quirky! It was inspired by my surname (Coates) and my partner and kids’ surname (Box). As a family owned and run business, it just made sense – and could also sound like a kind of storage item.

What pushed you to start this kind of business?

From the first time I ever lived on my own, I became quite fussy about tidiness and organisation. This only grew as I got older and especially after I had children. When we moved into our current home, I had to become creative in the way things are stored and also somewhat ruthless with decluttering as my home has little storage available.  I came to the realisation that I actually really enjoy decluttering and organising and was pretty good at it! Why not help others with their home? I know that a lot of people struggle with clutter and disorganisation so I could help others at the same time as doing something I enjoy. Also as a Mum of 3 young daughters, running my own business with hours I could make suit our lifestyle meant I could still be home on weekends and after school to spend time with my family and do all the mum stuff (like driving back and forth from dance lessons!).

How are you able to go the extra mile for your clients?

My service is a very personal one. I’m working in people’s homes with their personal belongings so a high level of respect, compassion, understanding and empathy is a must. Every one of my clients is different and every home is different. Sometimes I may need to work closely with a client who suffers from mental or physical illness or perhaps with a client who has lost a spouse or loved one. Or maybe it’s a time poor family who are overwhelmed and just need some help and support. I’m a naturally friendly person so I find that after the initial questions, I like to just chat with my clients, listen to them and try my best to relate to them and their situation. In any, job it’s necessary to maintain a level of professionalism but it’s also ok to share something of yourself!

What are the struggles you encountered in building your business along the way and how did you overcome these?

Well! Funny story – when I started working on putting my business together I got unexpectedly pregnant with my 3^rd child! This put the brakes on for a couple of years but I stayed focused and continued trying to learn as much as I could for when I could “officially” start work. I’ve now been in business for 2 years.

Also as a business run from home and on a budget I opted to build my own website – this was a big learning curve! I managed to get it sorted though and with some great advice from a wonderful client on SEO (Search Engine Optimisation) my site is now ranking high on Google search and this has improved my business exponentially!

Please share some valuable tips to our readers about decluttering and organising.

If you’re considering doing some decluttering and organising, depending on the time available and how motivated you are, start with the area that most frustrates you, or is most pressing – such as a cluttered kitchen that you have trouble working in, or a wardrobe where you have trouble finding what you’re looking for!

For those who are more hesitant or overwhelmed and don’t know where to start, maybe find something smaller, a drawer or just one of the kitchen cupboards. Then it doesn’t take as long and the visible results can boost your confidence and motivation.

Very importantly, go into any project with the aim to declutter first, then organise the items left back into the storage space. Try not to keep buying more and more storage as this can actually add to the clutter.

Don’t be afraid of empty space! People often see empty space and have the urge to fill it with something, don’t get pulled in by this feeling, instead, look at the space and try to appreciate it, one day you may need it.

Last but definitely not least, don’t be afraid to seek help, there are professional organisers all over Australia (and the world). Our professional Industry body IOPO (Institute of Professional Organisers International) has a database on their website you can search to find an organiser in your area.

The future ahead of you is dark. You are holding a ‘magic light bulb’, which has the power to illuminate any part in your future. (Means you can take a peek of your future) What part are you seeing?

Oh this is a hard one – there’s so much I’d love to see! My hope is that I could look forward to a time in the future when my business is still strong and successful, my family is happy and healthy and my daughters are growing up into smart, sensible and strong young women – one of the other big reasons for starting my business is to help support my family and be a good role model for my girls, so I’m really hoping this is in that illuminated future!

Organising and decluttering go far beyond improving the aesthetics of your home or work space. It’s essential to both your physical and mental wellbeing.  Find a way (and time) to start somewhere and just like what Toni said, if you’re not sure where to start, find something smaller. You got this!

The post The Illuminate Series: ‘The Coat Box’ appeared first on Soul Finance Group.

Soul Finance Group’s Top 10 Most Popular Blog Posts of 2018

We’re a matter of days away from 2019, but let’s not hop on to that just yet. December is a great time to look back at the previous months and take stock of what truly resonated with our readers. Many online publications have compiled their best-of lists for 2018, and we want to get in on the action. So we took a look at which articles on Soul Finance Group blog were most popular this year.

Here are the 10 blog posts that made the cut:

10. Different Ways to Observe/Celebrate Australia Day

Celebrating Australia Day has been a tradition amongst Aussie people and they sure constantly look for ways to commemorate it. In this post, we listed ways on how to maximise it including the good ol’ BBQ party.

9. Ways to Consolidate Your Debt and How It Works

Juggling debts can be tricky, and time and time again, we always advice our clients (especially if it works in their financial situation) to consolidate their debts. Doing so could make it easier to manage and potentially save them money on interest.

8. Confessions of a Working Mum

This is a pretty sentimental entry for me as it was very personal and I showed a vulnerable side of me. This blog aimed to become relatable to my audience (working mums specifically) who are struggling to keep it together. It was also written in honour of the Women’s Month so I figured why not create something that will resonate with them.

7. How does the cash rate affect your home loan?

Not everyone is well-versed in the finance industry. As a Finance broker, part of my job is educating my clients about what they need to know in regards to their finance. Every month, there’s always news about the RBA and how it can affect a homeowner’s loan. I thought of dedicating a post explaining it so they are well-informed and know what the next steps they can do.

6. Why You Need to Talk to Your Lender Now

In this blog post, I shared with my clients how they can talk to their lender and why they need to do so. A lot of homeowners might be intimidated by the idea of talking to their lender, but it doesn’t have to be. With the help of their trusted Finance broker, I highly encourage them to call their bank and see if they can haggle for a better deal.

5. The Illuminate Series: ‘The Gifting Pot’

I launched a series this year called “The Illuminate Series” where I feature one Perth-based small business monthly. My goal is to highlight these small businesses and encourage readers to take the plunge if they have dreams of starting on their own.

4. The Illuminate Series: ‘Fusion Biz Babes’

This is the 2^nd entry for the series I started last September. I tried to introduce to the audience each small business via questions I asked them. One of the constant question I always include is this: “The future ahead of you is dark. You are holding a ‘magic light bulb’ which has the power to illuminate any part in your future. (means you can take a peek of your future ) What part are you seeing?” The answers are interesting and inspiring!

3. 2018 Personal Finance Apps for Australians

This was a bit fun to write since I could also use the apps myself. A lot of us are looking for ways to make our lives a little easier so these finance apps are a huge help!

2. Beating the Holiday Rush: Gifts We Love from These Perth Businessowners

I won’t grow tired supporting my fellow girlbosses especially in my local community! Hence, I made this a part of my blog entries where I personally recommend small businesses in Perth where people can get their Holiday presents from. Turns out people loved the post!

1. First Time Home Buying: Your Questions Answered

The 2018 top most read blog post on Soul Finance Group! This post shared some simple and efficient ways in purchasing your very first own home. The process can be really overwhelming and complicated especially for first timers and my job is to help them with that.

Those are the top 10! Excited for what 2019 will bring! In the meantime, Soul Finance Group  will continue to offer you informative and educational content related to anything mortgage and finance. Happy New Year!

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post Soul Finance Group’s 10 Most Popular Blog Posts of 2018 appeared first on Soul Finance Group.

A family with young children with mortgage protection insurance

This is where Mortgage Protection Insurance (MPI) comes in. It protects your home investment from situations such as becoming disabled, sudden employment, or death–anything that is beyond your control. Basically, it helps you with the pay out of your mortgage repayments.

Aside from covering your monthly mortgage due to illness or death, MPI helps you protect one of your biggest investments. A mortgage ties together your financial security, your investment, and your house.

You might consider protecting your home loan if you are:

• A family with young children – in an unexpected unfortunate event, there’s a possibility that you might lose the house. MPI helps you avoid this, hence, it’s an added security to you and your family knowing they have a home to stay regardless of what can happen in the future.
• A household with single income – if one partner is dependent to the income of the other, MPI assures the continuation of your mortgage repayments if that partner lost its job.
• An investor – anything wrong can happen and securing a Mortgage Protection Insurance gives you the confidence that one of your biggest investments is protected.

As a professional mortgage broker for over 11 years, I always aim to prepare my clients for the unexpected. More than just helping them reach their financial goals, its my duty to help them keep and enjoy these.

Disclaimer:

 Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post What You Need to Know about Mortgage Protection Insurance appeared first on Soul Finance Group.

You might be in the mood to declutter any unnecessary stuff in your home and while you’re at it, you might want to take a second look at your current home loan.

At the end of this video, answer these questions:

 Am I paying an unreasonably high interest rate?
 Am I paying outrageous fees?
 Am I frustrated by inadequate service?
 Does my loan give me the features I need?
 Am I paying for features I don’t use?
 Have my financial circumstances changed?

For a complementary assessment, call Kirsten on 0408 081 082.

(If you want a written version of this, check this article we published.)

The post How To Spring Clean your Home Loan (VIDEO) appeared first on Soul Finance Group.

Nothing is certain in life but death and taxes. Hence for this week, we have given you some tax tips before June 30 arrives. If you have missed our posts, we are providing you this roundup. EOFY is just around the corner, so make your 2018 tax return more rewarding and check out these tips now!

This allows you to claim an immediate tax deduction for all capital purchases costing less than $20,000, rather than depreciating the cost over several years, as used to happen. This is great for tech items such as computers, tablets and phones, as well as tools and equipment, office furniture and even motor vehicles. The allowance is available to all businesses with an aggregated turnover of less than $10 million.

The expenses that you can claim include:

• Heating, cooling and lighting
• Cleaning costs
• Decline in value (depreciation) of home office furniture and fittings, office equipment and computers (for items over $300)
• Computer consumables, stationery, telephone and internet costs
• Items of capital equipment (such as furniture, computers and associated hardware and software) which cost less than $300 can be written off in full immediately.

If you used your personal mobile phone for work purposes, you can claim a deduction for the business-related use. Make sure you have your phone bills collected together and have kept a log of your business/personal use over a four-week period. That percentage can then be applied to the whole year.

You can claim a deduction for donations of more than $2 to a registered charity provided you have a receipt for the donation.

BONUS: Additional Tax Tips!!!

• According to Dave Ebdon, Senior Tax Specialist at Tax & Super Australia ,“The ATO will be paying particular attention to claims for clothing and laundry expenses, given that last year around 6 million people claimed work-related clothing and laundry expenses,” he said. “This is almost half of all taxpayers, and it is highly unlikely that this many people would be required to wear uniforms, protective clothing or occupation-specific clothing.” “If you don’t have receipts for your expenses, you can only claim a maximum of $300 for work related expenses.”
• Claim everything you are entitled to: Make sure you know what you can claim. For example if you are on the road for work (or work outside) you can claim sunscreen so if your foundation, lip-balm or moisturiser has an SPF factor then you may be able to claim it. You can also claim home office, internet, travel, training, handbags, food when travelling overnight.
• Gather written evidence. Make sure you have written evidence, such as receipts, invoices and bank or credit card statements, for everything you intend to claim.
• Prepay expenses. If you’re a small business you might consider prepaying expenses such as rent or insurance for up to twelve months.

* Soul Finance Group and its finance brokers do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

References:

https://mozo.com.au/savings-accounts/articles/eofy-last-minute-tax-tips-to-jump-on

https://au.finance.yahoo.com/news/12-last-minute-tips-save-taxes-040823563.html

Disclaimer:

 Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post EOFY Tax Tips Roundup appeared first on Soul Finance Group.

News and updates you see online about your home loan can be a bit overwhelming. Talk about information overload!

To avoid giving you that, we’ve created a very, easy to read infographic that contains ALL of the significant and important things you have to know that concern your home loan.

So if you are a current homeowner and would want to potentially save money on your monthly interest, take a look at this helpful guide:

What you need to know about your home loan

Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This infpgraphic provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post What You Need to Know About Your Home Loan (Very Easy to Read Infographic) appeared first on Soul Finance Group.

How to build your emergency fund in just 12 weeks

It’s one of your New Year’s resolutions to create an emergency fund.

If you are one of those people who haven’t built their emergency fund yet because:

• You just got enough money for your monthly expenses
• You don’t really see the need
• You have no idea where to start
• You’re clueless how to start saving for one

Whatever your reasons are, you have to allot a budget to build your emergency fund. Life has a way of ruining your budget whether it be a plumbing issue or an unexpected medical bill. Unforeseen circumstances seem to always get in our lives so having an emergency fund set aside is a logical and smart move.

I am sharing with you an easy and quick guide to kick off your emergency fund-building. This is a 12-week plan where it helps you save at least $1000. Ideally, the emergency fund should be 3 to 6-month worth of your monthly expenses, but since you are just starting, let’s take it one step at a time and try a more realistic method. Once you get the hang of saving, you’ll be able to increase the amount and have an “authentic” emergency fund in place.

Emergency fund in 12 weeks

If you need further help or you still have some questions, please feel free to contact me on 0408 081 082. Start building your emergency fund today!

 Disclaimer:

Credit Representative (486927) is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

The post How to Build Your Emergency Fund in Just 12 Weeks appeared first on Soul Finance Group.