1. Firstly, look at the reason why you want to switch your home loan
2. Lower interest rate
3. What is the new lender offering that is worth switching
4. Consider the features you’re looking for in your new home loan
5. Weigh up the pros versus cons of switching
6. Look at the costs of switching home loans
Deciding whether to switch your home loan to another lender is an important financial decision.
Here are some factors to consider when making that decision:
1. INTEREST RATES
Compare the interest rates offered by your current lender with those offered by other lenders. If you find significantly lower rates elsewhere, switching may be beneficial. However, consider any additional costs associated with the switch, such as application fees, exit fees, or ongoing charges.
2. LOAN FEATURES
Assess the features and benefits of your current loan and compare them to what other lenders are offering. Look for features like flexible repayment options, offset accounts, redraw facilities, or the ability to make additional repayments. Switching to a loan with better features could save money or provide more financial flexibility.
3. LOAN TERM
Consider the remaining term of your current loan. If you’re already several years into your mortgage, switching to a new lender could potentially reset the loan term, resulting in a longer repayment period. This may not be ideal if your goal is to pay off your mortgage faster.
4. COSTS AND FEES
Determine the costs associated with switching lenders. These may include discharge fees from your current lender, application fees for the new loan, valuation fees, and legal costs. Calculate whether the potential savings from switching outweigh the expenses involved.
5. CUSTOMER SERVICE
Assess the level of customer service offered by your current lender and potential new lenders. Read reviews and talk to others who have experience with the lenders you’re considering. Good customer service can make a significant difference in your overall experience.
6. OVERALL SAVINGS
Calculate the potential savings over the life of the loan by switching to a new lender. Consider factors such as interest rate differentials, ongoing fees, and loan term changes. If the savings are substantial, it may be worth considering the switch.
Remember, before making any decisions, it’s essential to seek advice from a qualified mortgage broker or financial advisor who can provide personalised guidance based on your specific circumstances. They can help you analyse the costs and benefits and determine whether switching lenders is the right choice for you.
At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire. Join our LEARNING HUB today!
Your credit report is a big part of whether or not you can borrow money from lenders. It gives lenders an idea of how creditworthy you are and helps them figure out how much of a risk it is to lend you money.
Here are some of the most important ways that your credit report affects your ability to borrow money:
1. CREDIT SCORE
Your credit score is based on the information in your credit file. This number shows how good of a credit risk you are. It depends on things like how well you have paid your bills in the past, how much credit you use, how long you have had credit, what kinds of credit you have, and how many new credit accounts you have. If your credit score is higher, it means that you are less likely to have problems with your credit and this makes it easier for you to borrow money on good terms.
2. LOAN APPROVAL
Before deciding whether or not to give you a loan, lenders look at your credit report. They look at your credit history, which includes any missed or late payments, defaults, bankruptcies, or accounts in collections. Lenders are more likely to give you a loan if your credit file shows a history of responsible borrowing and on-time payments.
3. RATES OF INTEREST
Your credit history also affects the rates of interest that lenders may offer you on loans. Lenders look at your credit score to figure out how risky it is to give you money. Most of the time, if you have a good credit score, your interest rates will be lower because you are seen as a more reliable borrower. On the other hand, if you have a low credit score or a history of credit problems, lenders may charge you higher interest rates to make up for the risk they see in you.
4. TERMS
The terms of a loan depend on more than just the interest rate. It can also change how the loan is set up. If your credit report shows that you are a higher risk, the lender may ask for a co-signer, a bigger deposit, or a shorter amount of time to pay back the loan. On the other hand, if you have a good credit history, you might get better terms, like more time to pay back the loan or fewer requirements for security.
5. BORROWING LIMITS
Lenders may also look at your credit report when deciding how much you can borrow. If you have a good credit history and a high credit score, you may be able to borrow more money. But if your credit file shows that you are more of a risk, lenders may limit how much they will lend you or ask for more security.
It is important to keep an eye on your credit file, look over your credit reports from the three major credit bureaus, and fix any mistakes or problems you find. By making payments on time, keeping your credit usage low, and taking care of your debts, you can build and keep a good credit history. This will make it easier for you to borrow money on good terms.
At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire. Join our LEARNING HUB today!
What are 3 ways to change your poor money habits into good money habits?
Changing poor money habits into good money habits is essential for financial stability and success. Here are three effective ways to achieve this transformation:
1. Create a Budget and Stick to It
Developing a budget is the foundation for managing your money effectively. Start by tracking your income and expenses to get a clear picture of your financial situation. Categorise your spending and identify areas where you can cut back or make adjustments. Set realistic financial goals and allocate a portion of your income towards savings and investments. Regularly review your budget and make necessary adjustments. By sticking to your budget, you’ll develop discipline and make conscious spending decisions, which will help you break poor money habits.
2. Set Up an Emergency Fund
One of the reasons people fall into poor money habits is the lack of an emergency fund. Unexpected expenses or emergencies can derail your financial progress and lead to debt or poor financial choices. Establishing an emergency fund acts as a safety net, providing financial security and reducing the need to rely on credit or loans. Aim to save three to six months’ worth of living expenses in an easily accessible account. Start small, automate regular contributions, and gradually increase the amount over time. An emergency fund will help you break the cycle of poor money habits by providing a financial buffer.
3. Educate Yourself About Personal Finance
Improving your financial literacy is crucial for developing good money habits. Invest time in learning about personal finance concepts such as budgeting, saving, investing, and debt management. Read books, follow reputable financial websites, and listen to podcasts or watch videos that provide valuable insights into money management. Understand the principles of compounding, diversification, and risk management to make informed decisions. By educating yourself, you’ll gain the knowledge and confidence necessary to change poor money habits into good ones.
Remember, changing money habits takes time and consistent effort. Stay committed, seek support from friends or family members, and celebrate small wins along the way.
At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire. Join our LEARNING HUB today!
Yes, I believe there is, otherwise everybody would be living without financial stress and having no money problems at all.
But that’s not the case, so there must be a secret?
What is the secret to financial health?
Well, let me explain more what the term financial health means.
Having financial health is about having the money to enjoy things you love.
It means having money work to your advantage and not just to your bank or financial institutions benefit!
AND…… it certainly means not having any financial worries or stress relating to money.
What you were taught or brought up to believe about money, has shaped you today.
This means the difference between having awesome financial health where you’re able to pay your bills, have money in the bank and live without financial stress.
Or, living from pay check to pay check stressed out and worried that if something happens like loosing your income, you could be in some financial strife.
Here are seven ways to know if you are in good financial shape and have awesome financial health.
1 Firstly, you don’t spend every dollar you earn, but have money left at the end of pay day
2 Secondly, you have a savings account with money it and ready for “just in case” emergencies like loosing your job.
3 Thirdly you’re able to pay more than your minimum mortgage repayments and you are well on your well to paying this sucker down before the end of your loan term.
4 Fourthly, you are paying your bills on time and before the due date
5 Fifth, at the end of each month you have a zero balance on any credit cards
6 Sixth, have money regularly put into an investment portfolio, whether it be for shares, managed funds or for property investment for example, and
7 Lastly, annual holidays are saved up and paid in full before heading away.
Making sure you work towards good financial health will mean the difference between living a very comfortable and happy life during your retirement years OR relying on government support living in poverty.
So do you feel you have awesome Financial Health? No, then time to do something about it don’t you think?
What I offer is a full coaching service that’s super affordable while you get the support, knowledge and help you require to make better financial decisions.
If money stress is causing you problems then check out how you can work with me below.
Let’s talk about how stress maybe shortening your life.
And, how you can become better equipped to deal with stress related symptoms whenever you start to feel them come up.
Are you aware what stress is doing to your body?
You may think you do. But I’m here to share with you that some of the symptoms are not as obvious as you may think.
Here in Australia, The Australian Psychology Society produce a stress and wellbeing report.
The area that always catches my attention is how anxiety and depression levels have risen over the years.
The report also shows that financial issues continue to be the top stress over the last few years followed closely by the second top stress being family issues.
I’ve said this before that whenever there are financial issues and stress in a person’s life, their loved ones suffer immensely.
So what effect is this then having on our emotional side and physical body?
Well, stress affects a whole range of areas within our body when we feel pressured or overwhelmed.
If you take a look at this illustration you’ll see that it’s affecting many areas within your body, some are obvious while others may surprise you.
I want you to look at the left hand side of this diagram to see how first hand it’s affecting your emotions.
When your emotions are overloaded by stress, you become irritable, you may alienate yourself from others and your confidence drops.
When you’re under stress, your behaviour changes and you may become accident-prone, lose appetite, take up recreational drugs or alcohol, and/or start smoking.
And no surprise here that stress greatly affects your mind and mental well-being, where you may experience more anxiety, become negative or make impaired decisions and judgments where you otherwise wouldn’t have done.
The area that I see common with stressed out people is when they experience headaches, skin problems and become breathless.
But did you know that stress can have a detrimental affect on other areas within your body like, complaints either in the form of diarrhoea or heartburn.
In more severe cases, stress can also affect your heart. You may experience heart palpitations or even worse, a heart attack.
In some cases stress has know to be the start of more serious issues like cancer and diabetes.
So you can see it’s more important than ever to take care of yourself and look at what’s stressing you out.
For a lot of people money is the biggest stress as I’ve outlined early in findings by the Australian Psychology Well Being Survey.
While I don’t have a cure for how stress affects the body – I do have a solution that anyone can adopt where financial issues are part of their stress and that’s getting more information and knowledge about how money works.
Obtaining financial education to improve your money position is critical to living a healthy stress free life.
Getting the right financial education, support and coaching will alleviate financial stress if you are serious about improving the quality of your life.
What I offer is a full coaching service that’s affordable while you get the support, knowledge and help you require to make better and healthy financial decisions.
So if money stress is causing you problems then check out how you can work with me in the resources below.
Many people are doing way too much comparing and complaining about their lot in life and not stopping to see the gifts and blessings they really have.
As I share with people often, there is someone doing it tougher than you that would kill to have the life you’re living and not the one they’re currently experiencing themselves.
Why do you feel the need to compare whether someone appears to be doing better than you or has a better life than you?
Unless you’re walking in their shoes you don’t have a clue what’s going on behind closed doors.
I know too often that on the surface things appear for some to be looking really good, but underneath the murky waters, they’re experiencing pain and what we see is really not what’s being reflected.
Often it’s not money issues that are causing them the problem, it’s the way they feel about themselves that’s causing challenges in either their work, relationships or even with their health.
What really makes you happy?
Have you ever just stopped and thought about this?
Most wouldn’t have a clue about what makes them happy, because they’re too busy sticking their noses in other peoples business.
Give yourself the luxury of finding out what makes you happy.
What puts a smile on your face and what would make you want to jump out of bed in the morning instead of hitting the snooze button?
Time is going by so fast. I can’t stress that enough.
Just think back to the last 12 months how quickly that has that flown by. Think back to even last month how fast that’s gone.
Ok so I want you to stop and take a moment to imagine you are turning 80 years of age tomorrow.
Come on really imagine how you would look – grey hair, no grey hair or no hair at all. A little bit more wrinkly now and possibly some of your body parts are heading more south than you would like. Yeah, guys, this doesn’t just apply to us girls. Some of you guys have what was once called pectorals or pecks that are now considered “man boobs” and they’re heading south too.
Ok so getting back to imagining you are 80 years of age and you now have between 8 – 10 years left on this earth. 8 – 10 years to spend doing whatever you choose and with whom ever you choose.
How would you decide to spend the next 8 or so years of the remaining time of your life?
Let’s just say you’re still in reasonably good health.
Would you still be comparing or complaining, or would you just go and enjoy every moment and live the remaining years of your life, making sure they are the best years you’ve ever had?
Would you be worried about making a fool of yourself, or fearful of what others would think of you? I somehow think you wouldn’t and would care less about what people think or do.
So what are you waiting for?
Live your life like that now. Enjoy your time while you are here on earth and do what makes you truly happy inside.
If you knew that life was going to be shorter than expected….I bet you would be looking at life in a whole different way.
You would stop concerning yourself about whether this person texted you back, whether this person is gossiping about you, whether this person likes you and so on.
When you stop and appreciate all that you have in your life right here right now – you become happier and grateful that you’ve got it better than you thought.
I often remind my daughter that we live in one of the best counties in the world. We have an abundance of food, sunshine and freedom.
We are able to go outside without the fear of a bomb hitting us. We can go outside and see how green the grass is, how tall the trees are growing, how free birds fly and chirp around us. How we can go to the supermarket and get every conceivable food or beverage we choose.
We have a choice.
You have a choice to live your life the way you want.
For most of us we were born with free will but the sad part is that a lot of us are choosing to be victims – trapped in our own head by our own thoughts.
Every choice you make will either enhance your spirit and self worth or drain it.
When you’re not happy living the life you so desire you’re actually betraying yourself. And it’s no wonder you bitch and complain and pick holes in other people. It’s why you’re so quick and easy to bring other people down.
Because you’re not happy and you’re letting yourself down – nobody else.
We all have free will.
We all have choices that we can make about the kind of life we want to live.
One with misery or one with absolute joy.
Are you making everyday choices that are harming you?
I believe we create the path we choose to live. Some of us have decided to start living with more joy and love in our heart.
The worst betrayal by not living this way is to yourself!
What I’ve observed is that it’s not until someone reaches that certain age in life that they start to question their existence. They question the choices they’ve made. They question the things they did or didn’t do.
The power of choice!
The most powerful choice you make in life is not the house you buy, how many children you have, the partner you choose or don’t choose or what type of work you do.
The most powerful choice of all is the life you choose to live. How you treat your mind, how you treat your health and how you treat other people. These to me are the most powerful choices you can make in your every day life.
Why, because it determines the kind of life you live and how truly happy you are and this determines the quality of your life and your health.
If you choose to live a life of misery, always comparing or gossiping about other people – you are living a very short and limited life.
So do yourself a favour and stop comparing or complaining about your lot in life and look around to discover how good you have it compared to other people.
Learn to be gracious and grateful for the wonderful gifts you have in your life whether it’s your health, your relationships, your family, your work or the very place you’re fortunate to live in.
When you’re grateful, you become a happier and healthier person.
If you’re looking to discover how you can become happier and compare less then I have a worksheet that can assist you in living a happier life. Download your worksheet HERE
If you’re looking for more support and assistance then there are a couple ways for you to stay in touch.
1 Leave me a comment here;
2 Head over to my FB group where you can access more financial and emotional support at Official Karen G
