Contact Us
Phone: +61 3 9819 4011

Did you know?
Many clients turn to their accountants for employment advice, what contracts do I need, what rates should I pay, are they a contractor or an employee, how do I terminate an employee?


Home Loans and Debt Management

Q.1 If you had $50,000 to invest but you still owed $50,000 on your home loan, what would you do?

(a) Invest the money

(b) Pay off your mortgage

A. Both. Pay your mortgage off then borrow the funds back to invest.

Result. You are in the same asset/ liability position, but you have converted your non tax deductable mortgage into a tax effective investment loan.

Q.2 On a standard $150,000 mortgage over 20 years is it worth switching banks for a .5% reduction in interest rate?

A. It depends on bank fees, however, you are likely to save $10,000 in interest over the life of the loan.

Q.3 Where do you invest $10,000 when you know that you will need it in 12 months?

A. Invest it in your home loan – providing you can redraw it when needed. If you are paying 9%, the additional $10,000 in your loan for only one year may have resulted in a saving of $1,000 loan interest! Where else can you get the equivalent of a 10% return without risk?

As MSI Ragg Weir Financial Services we not only source some of the best home loan and investment finances on offer, we also provide our clients with simple strategies and straight forward advice.

Back to Financial Services

twitter From Twitter

Blog Our Blog


Contact Contact Info

Level 2, 108 Power Street,
Hawthorn, VIC 3122
PO Box 325, Hawthorn, VIC 3122
T: +61 3 9819 4011
F: +61 3 9819 6780

Click here for parking details