Optimising Debt Structures
Effective debt structuring supports long-term financial goals. Mortgage brokers assist by refinancing for better rates, consolidating debts, and recommending loan features—such as offsets or redraws – to maximise benefits. For example, offset accounts can reduce interest while maintaining tax deductibility for investment purposes, unlike redraw facilities.
Enhancing Borrowing Capacity
Mortgage brokers provide access to a diverse range of lenders, where borrowing capacity can vary significantly based on lender policies and individual circumstances. This variety of choice allows brokers to identify the best lender for each client’s unique situation, maximizing borrowing potential effectively.
Tailored Lending Solutions
Mortgage brokers provide customised lending strategies to align with financial goals. For instance, debt recycling can convert non-deductible home loan debt into tax-deductible investment debt, improving long-term financial outcomes. By identifying the right loan products and structuring repayments effectively, brokers ensure lending solutions are tailored to each client’s unique circumstances.
Managing Rising Interest Rates
Rising interest rates have shifted the focus of refinancing beyond securing the lowest rate. Mortgage brokers assist clients by extending loan terms to reduce repayments or selecting interest-only periods to enhance cash flow, offering tailored solutions that provide greater flexibility in a changing economic environment.
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By working closely with a financial adviser, mortgage brokers can ensure lending strategies are seamlessly integrated into broader wealth management plans, helping clients achieve their long-term financial goals.
Written by Chris Hill
I have been in financial services for 20 years and joined Smartmove in 2014. I enjoy working with such a passionate and dedicated team. Drawing on over 10 years’ experience in mortgage lending I pride myself on offering my customers honest and professional advice and always seek to ensure I meet and exceed customer expectations.
