Welcome to the Mortgage Partners Australia ‘Lifestyle Strategy’.
The Lifestyle Strategy is not just another loan or a fancy name for a savings program, it’s a real solution, using your income, expenses and mortgage details to provide you with real information on helping you reach your dreams.
The Lifestyle Strategy is a combination of three essential elements:
- Loan selection
- Financial management & education, and
- YOU
We take the time and effort required to work with you to determine your existing financial commitments, financial goals and future needs.
Our strategy is an industry complaint mortgage management program designed to assist you in achieving your dreams in the shortest possible time with the potential to save you thousands of dollars off your mortgage repayments.
The Lifestyle Strategy Simulator enables you to easily project and track your expense patterns, and their effect on your loan term and interest savings, providing you with detailed projections updated every time you make a change.
For example, you want to make a one off purchase, say that plasma on special looks great, then consult your Lifestyle Strategy Simulator and see real time what impact that plasma is going to have on you reaching your dream.
The Lifestyle Strategy conforms to the MFAA Interest Minimisation Code of Practice and Guidelines for proper interest minimisation strategies, guidelines that are designed to ensure mortgage brokers promote honest and effective management programs to their clients.
How does it work?
The key to success of the Lifestyle Strategy program is selection of the correct loan for your lifestyle and future financial goals. You may have heard the term ‘Transactional Loan” before, this is an industry term for a loan that allows you to make additional repayments on your loan and redraw those additional repayments at a later date without the lender imposing restrictive limits or cost to do so.
I hear many of you saying a Line of Credit loan, no way; our friends got themselves in trouble using one of those loans. I agree, many people fell victim to flexible loans that where offered to clients without an effective financial management system to help them understand and manage their loan. Today we are able to offer loans that provide the benefits and flexibility of transactional loans, whilst providing the safety of principle and interest repayments when required.
Let us have a look at how two families use different loan styles to reach their financial goals.
Case Study 1
A young couple with two children has a mortgage on their owner occupied home and one on their investment property. Both parents work, producing a combined after tax income of $6560.00 per month which includes rental income from their investment property. Monthly expenses are estimated as $3,280. A busy lifestyle and the need to be flexible with repayments and monthly expenses our couple decide a Line of Credit loan best suits their needs.
Now let’s compare the outcome with a standard 30 year bank loan, paying principle and interest each month. To make a fair comparison and to comply with the industry Code of Practice, surplus income was applied as additional repayments to the standard scenario.
| Standard 30yr Scenario | Lifestyle Strategy Scenario | |
| Total Loan Amount | $497,000 | $497,000 |
| Monthly Repayments | $3,181 | $2,489 |
| Total Loan Term | 25yrs 4mths | 15yrs 5mths |
| Total Repayments | $968,371 | $710,070 |
| Potential Interest Saved | $10,481 | $239,070 |
| Potential Years Saved | 4yrs 8mths | 14yrs 5mths |
As you can see from the above comparisons our couple reduced their monthly repayments, which provides them with flexibility and reduced their total loan repayments by a huge $258,301.
Case Study 2
A young couple with one child and a mortgage on their owner occupied home. Both parents work, producing a combined after tax income of $4646.00 per month. Monthly expenses are estimated at $2,130. A desire to reduce their debt as quickly as possible with the peace of mind of reducing their loan credit limit a Transactional Principle & Interest loan was selected.
Now let’s compare the outcome with a standard 30 year bank loan, paying principle and interest each month. To make a fair comparison and to comply with the industry Code of Practice, surplus income was applied as additional repayments to the standard scenario.
| Standard 30yr Scenario | Lifestyle Strategy Scenario | |
| Total Loan Amount | $275,000 | $275,000 |
| Monthly Repayments | $2,650 | $1,654 |
| Total Loan Term | 12yrs 2mths | 5yrs 10mths |
| Total Repayments | $388,448 | $309,100 |
| Potential Interest Saved | $205,583 | $282,287 |
| Potential Years Saved | 17yrs | 24yrs 2mths |
As you can see from the above comparisons our couple maintained their normal monthly repayments, which provides them with makes budgeting just that much easier and reduced their total loan repayments by a respectable $79,348.
This can be your money working SMARTER! Ask us how?
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