Thinking strategically about your mortgage

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With a lot of mortgage promotion and comment focused on interest rates and fees, many borrowers are convinced that the cost of the mortgage is the most important factor they need to look at when choosing the right home loan.

The interest rate is really important but if not backed up with the right lending strategy it can cause long term and in some cases irreversible problems.

Confused about how to get a tax deduction on your Mortgage?

There is a lot of information available for people looking to research mortgages on the Internet and most of it has been designed by marketing people to advertise their business. It’s called Search Engine Marketing (SEM) and comes in many forms from lenders promoting themselves directly to borrowers through to perceived independent Interest rate comparison sites who earn commission when you click to view a lenders products or when their marketing results in you taking up one of their advertised lenders home loans.

The problem with almost all SEM is that it needs to be effective for the mortgage promoter and they focus on low interest rates because that sells, because that’s what most borrowers believe is best for them.

The problem with just looking at mortgage rates is that mortgage rates always change over the life of the loan, and it’s a flawed assumption to think just because a rate is the lowest today that it will continue to be the lowest over the next 30 years and more importantly, just looking at the product doesn’t take into account your current circumstances.

In this the first of a series of videos we help explain what makes interest on your home loan tax deductible, which if structured correctly will keep you out of trouble with the tax office and save you more money than just a low interest rate.

If you’d like to find out more about structuring your home loan have a chat to one of our experts.

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