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For a copy of the Gallery Magazine rate card and media kit, please contact Alan Phillips at the Home Option Gallery on 02 8860 9333.

Set sail for a smoother ride in 2009

For new home buyers who have just made a major financial investment in their future as well as for renovators who have topped-up their home loans in pursuit of their dream home, the global economic downturn may have dampened their well-earned enthusiasm.

However with interest rates now at 30 year lows and with the prospect of further interest rate cuts of up to 1.5 per cent this year, there are steps that can be taken to create a better personal financial position.

According to John Symond, executive chairman of Aussie, with these low rates, it might be worth considering fixing all or part of your home loan, as it will provide security if a recovery commences later this year and this pushes rates back up.

“In this climate it would also be wise to maintain your interest payments at their previous or current higher levels, as the extra repayments will save thousands of dollars and years off your home loan,” he said.

“I believe it is unwise to consolidate your credit card and ‘toxic’ personal debts with your home loan as it will just extend your repayment period and financial headaches for up to 30 years.”

Mr Symond recommends a better method is to consolidate your debt into your mortgage, but split the toxic debt and maintain the higher repayments. This will result in repaying the non-home loan component in half the time it would have taken previously.

newhome Mr Symond says that while we continue to see fallout from the economic crisis that has spread across the world, Australia is in relatively good shape to sail through the current economic slowdown.

If your financial situation tightens during the year, perhaps as a result of losing employment, you place yourself in a better position by talking to your mortgage broker or lender as early as possible, as there are always a range of options to mitigate your problems.

Mr Symond says that while we continue to see fallout from the economic crisis that has spread across the world, Australia is in relatively good shape to sail through the current economic slowdown.

He believes that Australia is truly a lucky country as we have a very strong and well regulated financial sector as well as lower fuel costs and the benefits of the Federal Government’s stimulus package now flowing through the economy.

“While it is too early to say that the financial crisis is over, there are signs of a revival in sectors of the economy, while experts are claiming that the bottom of the housing market in the US has been reached,” he said.

Mr Symond says we should be careful not to talk ourselves into a recession as there are enough good signs in the economy for us to escape the worst of the economic problems that are being experienced overseas.

For more information call Home Option Gallery aussie_logo
on (02) 8860 9333 or see Home loans and finance.