By Rohit Ranchhod | Mortgage Broker Waikato | Pay off your Mortgage WAY faster
A quick Google search for “how to pay off your Mortgage Faster” will reveal some interesting articles, mostly written by banks.
They’ll talk about tactics like paying mortgages fortnightly rather than monthly, and increasing your payments where possible… ideas that DO work, but might shave 1-2 years off your mortgage if you are lucky.
👀 NEWSFLASH… Banks are THE ultimate money making business! 👀
Yes, they give you money to buy a house… but you pay a steep fee for that over the long term.
{do you know how much interest you’ll pay the bank over your lifetime?}
Remember – their goal is to maximise profits for themselves and shareholders..
The main way they do this is by ensuring YOU remain a customer for a LONG time.
Over a very long time, we’ve been taught to focus on interest rates, how much “equity” we have in our home, and to take out 25 or even 30 year mortgages.
What if… that’s entirely wrong?
What if there is a better way – that saves you hundreds of thousands of dollars, and years of freedom from the grips of the banks?
There is.
Here are some things you might not know, but you should know.
👉 How much money will you actually pay the bank over the course or your loan?
👉 What type of loan do you have? Heard of redraws, offset, salary crediting?
👉 Putting personal debt onto a house loan might look good at a lower interest rate, but do you pay back more or less in the long run?
The banks have, over a very long time, essentially done a magic trick on us… and we’ve all fallen for it!
We are here to help you firstly REALISE that you’ve been essentially duped, and then FIGURE OUT what to do about it!
Here are some ideas and concepts we’ll start with:
👉 How a lower interest rate has minimal impact in reducing your mortgage term, and how little in interest you save. Focusing on length of loan is likely FAR more impactful.
👉 Why consolidating debt onto a home loan is not necessarily the best option, because you are adding TIME onto your home loan in most cases.
👉 Why these mortgage structures benefit the bank & lenders and not you – the banks KNOW how to get your loan and interest amounts DOWN, but its simply NOT in their best interests.
When you start talking to people like us, who are determined to save you hundreds of thousands of dollars in INTEREST, you’ll look at topics such as:
✔️ Paying yourself first – where does the money flow and how does the interest payable actually get calculated?
✔️ Insider Secrets – equity | LVR | 3 cs | credit ratings | assets and liabilities | banks tricks to maximise daily interest that you can combat – IF you learn about them.
✔️ Maximal Payment time v Minimal Payment Time – understanding why banks are working against you – it’s pretty obvious really, they are working for their shareholders not for you.
✔️ The SMART Mortgage Rapid Repay System – focussed on reducing interest paid over the life of the loan. Quite simply, banks make far less money from you, by employing this strategy, which significantly helps you and your family.
The banks have done a great job at convincing hard working kiwis that the idea is to keep all debt on your home loan, and pay it off over 25 years.
This is simply…. WRONG!
The goal of a bank is simply this… to maximise THEIR profit.
The best way they can do this, is to keep YOU paying them, for as long as possible, even if the rates are low.
Offset, revolving credit or fully transactional home loan account or mixture depending on the client. Along with a well thought out money management plan.
Yes – there is some work involved to optimize your Mortgage for a much faster pay down (10 years v 25 years for example), but it’s totally achievable for most people.
