Every homeowner loves the idea of becoming mortgage-free faster and paying less interest in the lead up to that landmark event. Fortunately, there are some easy steps you can take to get there sooner – whether you’ve just got your first home loan, want to increase your property equity or become mortgage-free as soon as possible. Let’s go over them.

Get your mortgage right

First up, switch to an interest and principal repayment loan. Paying just the interest may be great for your immediate cash flow but it is only kicking your principal repayment down the road. Your principal does not reduce during the interest-only period of your mortgage. This means your debt isn’t going down and you end up paying more interest. Interest-only loans tend to be at higher rates as well, so as soon as you can afford it, get in touch to make the switch.

Increase your frequency

Move to fortnightly or weekly repayments. While there are 12 months in a year, there are 26 fortnights, not 24. So, by paying every two weeks, you’ll be repaying an extra month every year – enough to help you get mortgage-free a few years earlier.

‘Set and forget’ can be costly

Keep a look out for a better rate. It’s a good idea to check in with us to review your current interest rate, to ensure it still works for you and is competitive. We can work out what features of your current loan you want to keep and compare the interest rates on similar ones. If there’s a better rate somewhere else, we can ask your lender to match it or offer you a cheaper alternative before making the move.

Top up your repayments

Increase the amount you pay whenever you can. Anything extra you pay reduces your interest repayments and shortens the life of your loan. Since most of us don’t miss what we don’t see, automatically rounding up your repayments is a painless way to do this. For example, you could round up to the next hundred. If you pay $850 every fortnight, make it $900. That’s $1300 a year off your principal and therefore lower interest repayments every month.

Try to stick to the same repayment amount even if you switch to a lower interest rate. If you keep making the higher payments, you’ll be repaying a little extra every time. Say your minimum repayment goes from $1000 a fortnight to $800. Keep paying the $1000 a fortnight and you’ll be taking an extra $5,600 off your mortgage every year. And with interest rates always threatening to change, it’s a good idea for us to periodically check you’re on the best split of fixed and variable rates for your circumstances too.

Offset everything you can

Get an offset account and make the most of it. This savings or transaction account links to your mortgage with the balance reducing your mortgage by the same amount. Interest is calculated daily, so every day your money is in your offset will help lower your principal and therefore interest repayments. And don’t forget that your mortgage interest rate will always be higher than the rate you earn in a regular savings account, so it can be a good idea to keep all your savings – as well as your salary – in your offset account.

Compared to the size of the average mortgage, all these steps may seem like they’re making only a tiny difference to your debt. However, over the life of your mortgage and when combined, they can add up to significant savings on interest repayments and the length of your loan.

If you’d like help planning or implementing the best combination of mortgage reduction strategies for you, please get in touch. You could be living mortgage-free a lot sooner than you think.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone: 03 9723 0522

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As we start a new year, many people will be enjoying the warmer weather and the chance to slow down a little and catch up with family, particularly older parents. Busy lives and distant homes can make it easy to feel out of touch. But this may be a time when adult children notice changes in their ageing parents and can also be a time for parents to take control over their future with advice and family discussions.

The signs of ageing may be distressing and worrying for many people, but they are a natural part of life, especially with our increasing longevity. The problem is not getting old. The problem is not having an effective plan for how to grow old. This plan needs to consider strategies to ensure the home environment and care supports are appropriate, as well as how to fund quality levels of care.

Don’t wait until a crisis has occurred to take action. Planning ahead and professional advice are the keys to quality care and effective decision-making. The journey may not be easy, and hard decisions may need to be made. Seeking objective advice from an Accredited Aged Care Professional TM can help to convert the mountain of data on aged care into meaningful and relevant information and ultimately into appropriate decisions.

It might be time for a family meeting

New Year is traditionally a time to take stock and plan ahead. And the festive season might be one of the few opportunities during the busy year for discussions with all those people who are important to you

If you have older parents, take the time this year to raise the issue with your parents and your siblings or other family members and seek advice to start building a family action plan. If you are that older person, the festive season provides you with an opportunity to bring your adult children together to discuss your care needs. Make yourself heard whilst you are still able to maintain your control and independence and put strategies into place.

The value of a family meeting

A family meeting is an essential step in planning for aged care and may help to minimise conflicts within your family. Emotional conflicts between family members can make the transition to care more distressing for an older parent and have the potential to rip families apart.

A well-run family meeting can allow parents, children and other family members to discuss issues and preferences, express concerns and make decisions that work for your family as a whole.

As an Accredited Aged Care Professional ™ can assist with arranging and running a family meeting to help your family see the big picture more objectively. Together we can consider the options for your parents’ care, security and happiness.

The earlier you take this step, the better. Planning ahead ensures that parents are fully involved in the decision-making and removes some of the stress from other family members. With a well organised plan in place, your family can respond more quickly and effectively when an event requiring a move to aged care occurs.

If you would like more information please give us a call.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Telephone: 03 9723 0522

Email: integrityone@iplan.com.au

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Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Telephone: 03 9723 0522

Email: integrityone@iplan.com.au

Integrity One Facebook

Ever thought about taking a break from your routine, a “Financial Health Day” to spend some time tightening up your personal finances?

While it might not be the most exciting day you will ever spend — unless the thought of saving a significant amount of money excites you, it will be worth your while.

It should be a weekday so you have scope to call banks, credit card issuers, health insurers, and other financial service providers who are easier to contact during office hours. And you will also need all your tools — financial records, current tax return, mortgage, credit card and bank statements — close at hand. Internet access is also important as there are many things you can do online.

Hitting the target

So, what are your objectives? Well, there are two sides to this coin. The first objective is to put more $$ in your pocket by saving a little more and spending a little less of your income, without making your life a penny-pinching misery in the process. The second is to discover some cheaper ways, if they exist, to pay for some of life’s essentials.

Start at the beginning by reviewing your monthly budget — or constructing one, if necessary — so you can pinpoint the big expenses before trying to pare them back. Take your power bills, for example. Some power companies will not only reward you with a discount for combining your gas and electricity, they will also allow you to pay them with a pre-set monthly direct debit, avoiding the shock of that big quarterly hit and smoothing your cash flow.

Monthly payments or saving targets can be an excellent budgeting tactic. In fact, you can even create your own monthly debit system for major expenses such as school fees, annual holidays and Christmas by estimating the cost and transferring monthly installments to a separate savings account. Your bank can probably make the transfers for you automatically.

If you can manage it painlessly by cutting one or two unnecessary expenses, one good outcome of a budget review would be to save an extra 1% of your salary — just $1 out of every $100 you earn — for a major objective like an overseas trip, new carpets or as a reserve fund. The best budgets can be wrecked by unexpected emergencies, whether it is a burst water heater or an unexpected mortgage rise.

Smart moves

Once you have your budget review completed and have set up new direct debits and/or opened one or two new dedicated savings accounts, you should still have a few hours of your Financial Health Day left to look for some significant savings on financial services.

Credit cards

Credit cards are a black hole in many budgets. Could you save by switching to a cheaper card? Are you paying off your card within the interest-free period? What about rewards programs — if you are paying for them, are you using them? Some supermarket reward programs now offer a “double reward” so it may pay to investigate your options. You can compare cards online at several sites such as www.creditcard.com. And if you do decide to change card companies, you might find one that will give you an interest rate holiday for the first 3–6 months as a reward for switching.

Health Insurance

Your private health insurance plan is also worth reviewing because your family circumstances might have changed since you took out the plan, or the market may have newer, more flexible options. Choice health insurance experts have found that you can save up to $932, by comparing and switching funds. See www.choice.com.au or www.privatehealth.gov.au)

Home loan

And finally, when was the last time you reviewed your home loan and your current interest rate? We can help reassess whether your current home loan still suits your circumstances and find not only the best interest rate but the most appropriate home loan to meet your current needs.

All done? Congratulations on a good day’s work!

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Telephone: 03 9723 0522

Email: integrityone@iplan.com.au

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Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Telephone: 03 9723 0522

Email: integrityone@iplan.com.au

Integrity One Facebook

Greater flexibility in working arrangements has been a by-product of the pandemic, as working from home has become more widespread.

While this flexibility has many benefits, it does also bring downsides, such as the increase in cyber security risks. With working from home to continue to be a reality for many, as workplaces move to more flexible working arrangements, here’s what we can do to stay safe.

Why cyber security is of greater risk at home

According to the ACSC Annual Cyber Threat Report 2020-21, there was an increase in the average severity and impact of reported cyber security incidents, with nearly half categorised as substantial. And there were over 67,500 cybercrime reports, an increase of nearly 13% from the previous financial year.

Not only are cyber security attacks impactful to the individual, but they also take a toll on businesses. The Australian Cyber Security Centre (ACSC) found that the total estimated cost of cyber security incidents to Australian businesses is $29 billion per year.

With so many Australians working from home, it’s no coincidence that the rates of cyber security attacks are on the rise. When we work from home, we are no longer protected by a closed office network, so we are at greater risk of cyber security threats.

Given we tend to be working alone at home, this also makes us more vulnerable to scams and phishing attempts. Click on a suspect email in the office, and it’s either caught before it gets to you or you can ask a co-worker if they have received the same. With fewer opportunities for water cooler chat, you are more likely to be out of the loop.

How to stay safe

There are various ways you can protect yourself from cyber-attacks, and you don’t need to be an IT whiz to do so.

Install antivirus and security software

Your first layer of protection should be the use of antivirus and security software, such as Norton or Bitdefender. If you already have this software installed, ensure that it is up to date.

Update software, including all security updates

You also want to stay up to date with your software, so don’t skip those security updates that appear on your computer and phone. You can turn on automatic updates, so you don’t have to worry about missing these.

Secure your home Wi-Fi

As well as having a secure password for your home Wi-Fi, you should also use a strong encryption protocol for your router (currently WPA2 is the most secure type of encryption) – you can check this through your device settings.

Review and update your passwords

If you have had the same password for years and don’t have variations for different purposes, it’s worth updating your passwords. It sounds obvious, but don’t choose a password that will be easy to guess, such as something relating to your street name or workplace.

Opt for multi-factor authentication

Multi-factor authentication provides an extra layer of security when it comes to accessing your devices, making them harder to hack into. An example of multi-factor authentication is the combined use of a secure password, an item such as a security key or token, and a validation such as a SMS or email.

Be aware of scams

Scamwatch.gov.au is regularly updated with the latest scams. Run by the ACCC, this website contains comprehensive and current information on scam attempts such as phishing and extortion. Share this info with family and friends so they also know what to be on the alert for.

Consult with your IT Department

If your workplace has an IT Department, contact them to ask for any additional tips on how you can stay secure working from home.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Telephone: 03 9723 0522

Email: integrityone@iplan.com.au

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