Its My Home : 2015
IT’S MY HOME - Summer 2015 | 40 reviewing your expenditure to locate any ways in which you could reduce unnecessary spending. These savings could be used to make additional home loan repayments, accumulate cash in a high interest cash account, or be invested in property or share-based investments. One way to ensure you’re regularly saving is to set up a dedicated savings bank account, and ask your employer to direct a portion of your salary into it. You will quickly get used to living with less money, and may even forget about the money being built up in the savings account. Another option is to direct your employer to deposit any pay increase or bonus into the savings account so you don’t notice the change and won’t be tempted to spend it. REVIEW YOUR HOME LOAN If you have a home loan for the property that you currently live in, it may be an idea to consider reviewing your home loan to try to obtain a lower rate of interest. After all, it couldn’t hurt to call your lender and ask them to improve your interest rate – and you may be surprised at their response. Banks want to retain customers and are usually willing to improve home loan rates if they feel that you may move your loan elsewhere if they don’t. You may also consider fixing part of your loan, given the attractive fixed rate loans on offer in the current market. However, if you fix a property loan, there may be a break cost involved if you sell the property within the fixed period. Some lenders may be able to transfer the fixed loan to a new property, however you should discuss with a mortgage broker and receive professional advice before making any decisions relating to loans. James Gerrard James Gerrard is a Partner at PSK Financial Services, and has worked in the financial services industry for roughly 15 years. His opinions on financial planning are regularly published in the Australian media, including the Australian Financial Review, The Australian, the Sydney Morning Herald, The Age, The Herald Sun and Business Review Weekly. Prior to joining PSK, James was a Senior Financial Adviser with Godfrey Pembroke, and worked for the NSW Attorney General’s Department in Sydney in Corporate Finance and Financial Advisory. He has extensive experience in wealth accumulation strategies, tax planning, retirement planning, expatriate advice, risk protection, estate planning and complex investment strategies and investment management.