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.

How to save for a home deposit

First home buyers often need to put down tens of thousands of dollars as a deposit because of rising house prices– which can seem impossible unless you’re earning a fortune, or are lucky enough to have borrowed from the Bank of Mum and Dad.

If you are finally decided to own your first home but the thought of saving for a home deposit seems to get in the way, read on these three helpful and smart steps to get you going:

Analyse your current financial situation.

Assess your current spending habits and work from there. Know where your money is going by determining which household cost eats up most of your budget. Spending Tracker is an app where it helps you keep track of your expenses. Set a budget and stick to it. Don’t spend on items that are not essential. Avoid impulsive purchases. These habits delay your dream of owning a home.

Manage your debts.

Once you had prepared your budget, get on top of your debts. Pay off your credit cards as this helps you increase your borrowing power. Consolidate your debts to eliminate multiple payments and interest rates. If you wish to know how much you can potentially borrow, check with our calculator.

The key to building up a deposit is to start saving as much as you can as soon as you can. Ideally, you have to save 20% of the purchase price of the property. If you have less than 20%, there are banks and lenders that offer deal to clients who have this kind of circumstance.

Which leads to the final step…

Seek professional help.

Consulting a finance broker can lead you to a variety of deals available in the market. Soul Finance Group has access to a variety of lenders and banks. We can help determine if you are eligible to a First Home Owner Grant (FHOG) and can even guide you in the application.

You can also consider whether your parents or other family members may be willing and able to help you out with a one-off financial gift or interest-free loan.  If you are renting a property and has an excellent payment history, we can help you use this in your home loan application as there are lenders which offer that kind of deal.

The process of owning a home can be tedious but if you have the right sources, you’ll be living in your dream home in no time. Consult with me today to get you started!

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 3 Helpful Smart Ways on How to Save for a Home Deposit appeared first on Soul Finance Group.

However, if you just deposit this in the bank, you know too well it won’t grow as much because of the minimal interest on deposits. You read it online, you occasionally see it in the news—if you want to ultimately grow your funds, investment/property investments and stocks are the way to go.

Consulting a finance professional is a smart step. Initially, you will be asked what are your goals. Of course, your ultimate goal is to build and grow your funds by investing. You will then be offered an investment + insurance plan. Depending on the proposal, this finance professional will show your projected earnings in the next, say 10 years. You will learn that the first few years, your initial premium will be spent on insurance and protection benefits. According to your agent, it’s wise to insure yourself first so that in case of hospitalization or death in the future, your beneficiaries (in this case they could be your family) have something to receive. I’m a finance broker myself and I’m not saying that’s wrong. In fact, that’s a good proposal if and only if you are investing for your and your family’s future.

You are a young professional starting to build your funds, insurance is good for safety net purposes, however, it is best for you to prioritise to earn in such a way that your funds will maximise its earning, the product that the agent offers does not align with your purpose.

In a financial pyramid, this is the guide I show my clients:

Financial pyramid

In as much as you want to agree with the proposal, if 1, 2, and 3 are not yet fulfilled, don’t sign up just yet. As a young professional who just joined the workforce, establish your finances well. Millenials today have the tendency to be impulsive but I also believe some have the ability to be critical especially when it comes to money matters. It just doesn’t make sense that you are preparing what you can leave to your family (insurance) without actually preparing how you are going to live (basic, emergency funds, savings.)

First, determine how much money you can set aside a month for investment. Second, look for an investment outlet. There are a lot of competitive deals in the market which I’m happy to introduce you to. Feel free to shoot me a message or call me.

Disclaimer:

Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.

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

The post A Millennial’s Guide to Building Funds appeared first on Soul Finance Group.