mortgage cutter presentation (bf) v1.1
Post on 15-Aug-2015
67 Views
Preview:
TRANSCRIPT
MORTGAGE CUTTER Transform your mortgage Into a business opportunity
This information was produced as an information service and without assuming a duty of care. It contains general information only. It does not constitute financial advice and should not be relied upon as a substitute for financial or professional advice.
This Presentation does not take into account any persons particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a financial product persons should assess whether the product is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek professional advice. No responsibility is taken for persons acting on the information provided. Persons doing so, do so at their own risk.
It is a requirement that all prospective investors are required to obtain competent legal professional advice or be represented.
Save $’000’s of interest
payments
Take years of
your loan
Control of the term and cost of your
mortgage
Accelerates property
ownership
Provides financial
protection
A NEW WAY TO:
1
2
3
4
5
6
7
Make more frequent payments
Choose a loan with offset or redraw
Put your salary into your offset account
Use a credit card program
Shop for low rates and or fees
Pay extra amounts
Put your tax return into your loan
INCREASING EQUITY
PRINCIPAL & INTEREST
INTEREST ONLY
Loan Term
Loan amount
30yrs
INTEREST ONLY Loan
amount
30yrs
Equity + Mortgage Cutter
Typically 10 – 20yrs
Loan Term
Guaranteed Income
12%
$375,618
$190,062
11.92
18.08
Making your mortgage WORK for you by using the equity in your mortgage to reduce your Loan
Profit Share Income
26%
$604,646
$313,408
20.42
9.58
Mixed Income
18%
$510,517
$261,983
16.92
13.08
Initial Loan $400,000 Current Loan Balance $375,000 Available Equity $25,000 Interest rate (%pa) 6.00% Initial Term (yrs) 30
Choice of Income: (Paid monthly)
Typical Rate (%pa):
Payments Saved
Interest Saved
Years Saved
Loan Term (yrs)
Pay off the home loan sooner
Gain positive cash flow from residential investment property
Meet property running expenses
Provide a mortgage repayment buffer
Proof of direct ownership
Sole purpose test
Monthly income
Certainty of value
Tax-effective
USE PASSIVE BUSINESS INCOME TO SUITABLE FOR SMSF
The net monthly additional income from their using Mortgage Cutter strategy will reduce their loan term by approximately 11.5 years and save them about $110,000 in interest without adversely impacting their life style.
After considering a number of mortgage reduction options, they chose the Mortgage Cutter strategy as it did not adversely affect their cash flow from their existing incomes.
A couple have a $240,000 loan over their property and $80,000 available in their offset account and are interested in reducing their mortgage.
STRATEGY OUTCOME
Establish a $440,000 loan with offset account.
Pay out $120,000 personal debt.
Apply balance of loan to a Mortgage Cutter strategy earning 18% pa.
Apply the net monthly passive business income to repay the loan and re-invest (compound) the increasing amounts in the Mortgage Cutter Strategy.
STRATEGY OUTCOME
Pam, a single mother aged 50 needed $120,000 to repay a private debt. She owns an unencumbered property valued at $550,000.
A 15-year, 6.00% pa $120,000 loan required $1,041pm repayments. Pam wished to minimise her monthly cashflows.
Option 2: Same as Option 1, but continue the Mortgage Cutter strategy for another 7 years, and earning $6,520pm passive ongoing income.
Option1: Repaying the $120,000 personal loan in 3 years with no monthly repayments from personal income and discharging the loan in full using the 3-year capital buy back provision, or
With appropriate professional advice set up a SMSF
Arrange an 80% LVR SMSF loan Purchase a $400,000 investment property + Mortgage Cutter package
STRATEGY OUTCOME
A Couple in their mid-50’s with 2 young teenage children wanted to be financially independent by age 65. Their main asset was almost $200,000 in super.
Initial package income of $336.00 pw positive cashflow
Return on Investment (ROI) of 20.43%pa
SMSF loan fully repaid in 10 years
Ongoing rent + Mortgage Cutter strategy income
MORTGAGE
EQUITY AND/OR
AVAILABLE CASH
DESIRE TO RUN YOUR MORTGAG
E AS A BUSINESS
Brian Fincham Ame-x Mortgage Management
M: 0400 303 572
E: brian.fincham@ame-x.com.au
top related