Why pay your bank more? Keep your money!

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Do you know what interest rate you are paying on your property loan?  It is normally at tax time that new Chan and Naylor clients discover that they are paying over the odds on their loans and putting extra money into their bank managers pockets, more than they need to.

Typically this happens when the C&N Accounting and Finance teams review a client’s finances and establish they are paying too much interest.

Right now, it is highly likely that many are paying too much interest as there is significant competition amongst lenders, which is part of the reason why rates are at ultra-low levels.

The brokers in the Chan and Naylor Finance teams have been able to arrange very low variable and fixed loans for clients – many with interest rates below 4 per cent.  But there is no guarantee that these ultra-low rates will be available forever (in fact a recent NAB report said that the next move for interest rates would be upwards).  So, C&N clients are advised to contact their C&N broker as soon as possible to lock in these low repayments.

Another reason for reviewing your finances now is that, for those clients who could be in a lower tax bracket next year, it could provide you with an opportunity to pre-pay their interest.

Plus the combination of capital growth in the past years, as well as these low rates, is making it attractive for many who are reviewing their loans to create a springboard for further property investment.  By tapping into the equity in their property and taking out a lump sum they then have the deposit to invest in another property.

Related:  Interest rates are getting lower while the economy strengthens

Graeme Salt – National Client Finance Manager, Chan & Naylor Finance Australia

Graeme Salt

Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.

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