Blog

The Smart Way to Borrow from the ‘Mum and Dad Bank’

Parents love their kids and want to help them out. Kids love being able to realise their dreams and their folks can be a big help. But sometimes ‘it’s complicated’.   With the property market moving further out of reach, flat wages and higher personal debt, financial stress is on the increase. And the risks…
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How Parents Can Help Their Kids Without Losing Their House

About one in five first home buyers last year were at least partly financed by their parents. According to the Sydney Morning Herald, that number had increased by four per cent in just a couple of years1. In the past, parents only had three ways to help their kids get on to the ‘property ladder’:…
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Understand Your Mortgage Risk

Imagine if your home loan interest rate climbed from the current average (around 4.5 per cent) to reach a long-term average of 7 per cent. In that case, almost half of Australian homeowners would find themselves under serious financial pressure, according to a recent report.1 In fact, if interest rates rose by as little as…
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Is It Time to Refinance Your Mortgage?

Once upon a time, back when workers had one or two jobs for their whole career, most people continued with their mortgage faithfully until they had paid it off. How things have changed! These days the average duration of a home loan in Australia is just 4-5 years before the mortgagee decides to refinance. Consider…
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How to Share Debt with Your Partner

Joint debts between partners (personal and business) create some of the biggest tension in relationships. Many of our clients come to us for help with this issue, especially where there has been a breakdown in the partnership. At the outset if a debt is joint, each person will be treated as if they owe the…
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Avoid these Common Refinancing Traps

Maybe you’re after lower repayments. Perhaps you dream of investing, using the equity in your home. There is no doubt that refinancing can offer a world of benefits as long as you avoid these common pitfalls. 1. Interest rate blindness A low interest rate can be so dazzling that it makes the mortgagee temporarily blind…
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Applying for a business loan? Follow these 5 Rules First

Preparing a detailed business plan is an essential part of applying for a business loan. The lender will know that you are serious and can assess your application accurately, armed with all the right information. Follow these Five Rules to give yourself the best opportunity to succeed. Know your numbers. In order to inspire confidence…
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Business Failed but Kept the Family Home

Jane* was in trouble with her business which she ran as a company. Business this year had not gone well with several large accounts not paying bills and leaving a large hole in her cash flow. She had rent due, Tax due and Suppliers to pay.  She had hit her credit limit with suppliers and…
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Bankruptcy Case Study: Can Bobby Keep Her Home?

Bobby's*  Debts had accumulated after a string of unfortunate events put her a long way behind financially. Bobby had a relationship break up several years ago and was left with a lot of Debt. She has a disabled child and is now caring for her, on her own. She has only one income and needs…
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Bankruptcy Case Study: To Save the Family Home

Stephen's* Debts had become so high he had no option but to declare bankruptcy. His business had gone to a totally unrecoverable stage and offering a payment plan was not an option. Stephen was just worried about finding a job with enough income to manage living costs. He had found something with moderate income and…
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