Mortgage Reduction

Mortgage Reduction Strategies That Will Help You Pay Off Your Home Loan Years Earlier And Grow Wealth Through Property FASTER!

Do you want to pay off your home loan faster to be debt free as quickly as possible and save yourself tens of thousands, perhaps even hundreds of thousands of dollars in interest? While simultaneously building a solid property portfolio with increasing equity?

Then read on to discover how the Mortgage Reduction strategies in the Financing Property complete Wealth Creation Through Property Program have helped thousands of people pay off their home loan in 2-5 years and grow wealth in property at the same time.

Our 7 Step Mortgage Reduction process involves the following key components:

  1. Ensure you have the correct loan product on your home loan with no penalties for unlimited repayments.
  2. Set up a self capitalising line of credit to invest in property.
  3. All income is placed into the home loan including rent, personal income and tax benefits which can be claimed weekly or fortnightly via PAYG Tax Variation.
  4. The client pays down the home loan and non tax-deductible debt and the tax deductible line of credit is increased to service the investment debt.
  5. As interest is calculated daily the home loan is greatly reduced, and the client harnesses the additional benefits of investing, such as growth.
  6. The home loan and line of credit are re-limited every 6 or 12 months.
  7. Program participants are monitored and support is given to ensure budget is maintained.

A large part of the strategy is to invest in property. Financing Property completes all due diligence on the properties and ensure that they meet the following key criteria:

  • Areas with expected capital growth and a good benchmark in sales.
  • Areas with low rental vacancies and good facilities, schools, shops, work, etc.
  • Newer properties, for less maintenance issues and maximum depreciation.
  • Market timing (not overpriced or at height of market prices).
  • Properties with good land content, as land appreciates in value and buildings depreciate in value.
  • Properties with a good rental return.

Once the property is selected:

  • We pay the deposit and fees out of the line of credit.
  • The property is set for interest only repayments.
  • The income for the investment property (rent) is paid into the home loan along with the other income.
  • If the client is a payg employee, we complete a payg tax variation so the tax deductions are claimed from day one.
  • We refer our clients to accountants who are experts in property and tax minimisation and take the clients through the process of claiming the greatest amount of tax via a quantity surveyor report.

The client is now reducing the tax they pay, paying off their home loan much faster and also growing wealth in property. Property grows at an average of 7-10% and the client now has two properties exposed to this growth.

If you have 1 million dollars in property today and the market kept growing at traditional growth rates, in 10 years your portfolio will be worth 2.71 million dollars.

The Financing Property complete Wealth Creation Through Property Program is backed by an outstanding track record of successful results. Here is an example of how the Program’s Mortgage Reduction strategies have delivered significant gains for one of our Brisbane-based clients:

The client is 45 years-old, single, with $200,000 of equity in her owner occupied property.

First, we refinanced the owner occupied property to major lender (Westpac) where they have the facility to re-limit the home loan and line of credit without penalty. Westpac released $100,000 equity into a line of credit and because the release was for investment purposes, it is 100% tax effective.

The client then purchased new townhouse in Murrumba Downs, Qld. This is an excellent growth area and the property being new serves well to maximise the client’s tax deductions. We completed a quantity surveyor report and payg tax variation to take advantage of tax savings from day one.

Now, with just current repayments, rental income and tax savings, this client will pay off her home loan in just 4.5 years. This will be further reduced if the client places extra funds into the home loan.

The growth rate nominated is 7.5% resulting in a capital gain of over $100,000 by the time the owner occupied property is paid off.

Note: The independent valuation must be at cost price of the property to ensure future growth and equity earned.

To explore the third component of the Financing Property Program, please continue on to the Wealth Creation Through Property section.

Contact us for more information

Click here to contact us now or call us on 1300 734 421 to find out more about how Financing Property can help accelerate your wealth-building journey.