Funding options
In order to finance improvements outlined in your free home sustainability assessment, basically you have four options:
Option 1: Use your savings or save the money needed
Option 2: Use a credit card (18% -25%)
Option 3: Personal loan
Option 4: Redraw or refinance your mortgage
Using your savings:
This option suits people that have ‘spare’ savings available…. That’s not many of us.
Using your credit card:
Due to the high interest rates applicable to credit cards they are usually not very popular for major expenses that will take a while to pay off.
Personal Loan:
Personal loans are good for small items. The rate can vary depending on who your financier is and how much security you can ‘offer’.
Redraw or refinance your mortgage:
For bigger, more expensive items this is the cheapest form of finance.
Let’s look at a few examples.
Example 1: You currently have a $300,000 mortgage at 6.75% and spend $360 per quarter for electricity. That’s $2065 per month. Over the next five years you will spend $123,900 in mortgage and electricity payments. This does not allow for the projected increases in electricity charges.
Example 2: You decide to install solar electricity to your home. If you install a system that would offset your current power bill for around $10,000 and put that on your mortgage, your minimum repayment would only be about $2010 per month. Over the next five years that’s a saving of at least $3300 compared to the example above.
Example 3: You install solar electricity to your home and instead of paying your minimum payments you pay as if you were still paying your original $300,000 mortgage and a $120 per month electricity bill. Over the term of the loan you would save almost $40,000 compared to example number 2 above.
OK, where to now…
As a Green Loans home sustainability assessor, Tony Cossor from Building Stuff saw firsthand the demand by homeowners for funding and the frustration of homeowners following the scrapping of the interest free loans.
In order to help homeowners finance the renovations and changes they want, Tony approached leading finance broker Finance Ezi to see if they could help homeowners in any way.
As a result of these discussions, Finance Ezi is offering an obligation free assessment of your finance options. This is a great opportunity to give your current mortgage a health check. They will compare your current home loan with others in the market, looking for the best deal for you.
It won’t cost you anything but a little time. Either call 1300 003 003 or click here to fill out our contact form and Finance Ezi will call you.
Some people say……”I thought using a mortgage broker is not as good as dealing directly with a bank yourself…”
Facts
· The reverse can actually be true. Some banks will not offer discounted products to consumers unless they are asked for.
· Utilising Finance Ezi’s trained staff for your loan saves you time and ensures you get the best deal.
· Whether you walk in to a bank branch or deal with a broker, the cost to the lender is the same.
· Most banks get around 30% of their business from mortgage brokers.
Who is Finance Ezi?
Finance Ezi is a leading finance brokerage who can provide finance Australia wide. For mortgages Finance Ezi have access to over 25 lenders to ensure you get the best deal. In addition to mortgages they can also help with all types of business and personal finance.
Their motto is “The right loans at low interest rates. We don’t want just a loan, we want you as a customer”.
