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If and when you are looking for finance, try to look past the banks ‘lowest interest rate’ marketing ploys as it is usually those mortgages with the low interest rates that will actually cost you more over the term of the loan, not only in fees but also the most important factor being TIME!

I often ask my clients, would you prefer a home loan at 6.99% over 30 years or a home loan at 7.95% over 17 years? I’d much rather be Debt Free is 17 years rather than 30 years – wouldn’t you?

Banks have trained you to think that if you ask the golden question – “What’s the lowest interest rate”, that is equivalent to you asking for the ‘Best deal’… However, this is
not the case, as the banks use the ‘low rate’ to hook people on these FAT PROFIT ridden 25 or 30 year Home Loans. They know that by getting you in on a so-called ‘low’ rate, the banks will be getting more than their fair share of profit out of you, over the long and expensive 30 year term!

Did you know that you will pay back MORE than double what you originally borrowed from the
bank with a 25 or 30 year P & I loan ?

Based on the last 7 years I have spent in the finance industry, if I could offer you only one piece of advice - it would be: “Look at the STRUCTURE of your home loan".

What I mean by that is, make sure you look at a loan which allows you the freedom and flexibility to actually get your income working for YOU on YOUR loan. By getting your income working for you on your loan, you will be able to save thousands of dollars in
interest payments as well as get debt free quicker!

No, I’m not talking about the Line of Credit (Equity Line) which turns into a massive headache just like the credit card that is attached to it. This type of loan makes it easy for you to spend MORE than what you earn. It not only allows you to spend more than what you earn, it magnifies the negative effect and your repayments actually INCREASE each month as your Debt level increases.

Every week I refinance clients off of Lines of Credit, especially when the clients have unfortunately chewed up all of their equity, and have their loan balances just sitting under the facility limit. This loan is a trap which will expose you if you lack self discipline (95% of Australians) and sound money management.

What I’m talking about is getting a home loan facility where you are actually guaranteed to Pay Less each month in repayments, yet you will still be Debt Free Quicker.

And now you’re asking yourself “Why hasn’t the bank told me about this”… Think about it… The longer you’re in debt, the more money the banks make. The more money the banks make, the higher their profits. The higher their profits, the happier their share holders are and the higher the share price rises. The higher the share price, the higher the value ($) of the bank!

So why would any bank want to show you How To Get Out of Debt Quicker? They clearly don’t and they won’t – it is not in their best interests!

Whereas my mindset is different – I’m a very BIG believer in Debt Reduction AND then Wealth Creation! Now the banks certainly don’t give you any strategies on wealth creation….do they?

It’s pretty simple if you think about it – The Quicker I reduce your Debt, the Quicker you have more Equity to start creating Wealth. And guess what you’ll need to start creating wealth – an investment loan! Luckily, that is where I (your financial consultant) get paid again. So the quicker I can get your debt down, the quicker I get paid again….

Now that is what I call having a vested interest in your success – the better you do, the better I do! That’s the way it should be….and best of all, you get to use Crown’s Debt Reduction & Wealth Creation program for FREE - we get paid by the lender!

Scott Parry
Director
Crown Lending
1300882981