START HERE
Get a free car loan eligibility assessment and compare offers tailored specifically to your circumstances.
Loan Amount:
$
Postcode:
All finance quotes are provided free (via our secure server) and without obligation. We respect your privacy.
Any Purpose
New car purchase
Used car buyers
Refinancing
Private sale
Dealer purchase
Any Situation
Refused by Banks
Self-employed
Bad Credit History
Low/No Deposit
No Savings History
Ex-bankrupt
All Features
Secured Car Loans
Unsecured Finance
Vehicle Leasing
Hire Purchase
Chattel Mortgage
Major Banks
Non-bank Lenders
Lo/No-doc Loans
Knowledgebase
Mortgagor:
A person who offers to assign an asset as security (e.g. real estate) under a mortgage loan contract. The lender (mortgagee) holds the legal ownership of the security until the loan is repaid and the mortgage is discharged.
Car Loans Australia :: Articles

Car Loans Australia Articles

Mortgages, loans and credit cards: What the Banks don’t what you to know

The banks have so much control over you and your life. You really have to fight to reduce your dependence on the bank as a source of funds. It's just too easy to go along.They make it easy to get into debt.  

The banks' focus is to make a profit for their shareholders. The banks' marketing strategy is to ensure that the householder has the maximum level of loans, which can be repaid consistently, to maximize profits. Lets look at the level of profitability of bank loans.

  • Mortgages......................................5 - 6% interest
  • Business loans.................................9% interest
  • Personal loans.................................12 -18% interest
  • Credit Cards...................................17 to 24% interest

Draw up a list of all the loans, mortgages, credit cards, car loans, store cards. Write down 5 columns across the page with the following headings.

  • Bank name 
  • Type of debt product
  • Balance owning
  • The interest 
  • Monthly repayment

 Is this you?

  • Usually the first significant purchase of a person or a couple is a house. (Note the interest above.)
  • Immediately the householder receives a number of credit cards sent to them and without advice or training uses those cards to develop the house (see the interest above)
  • Twelve months later they find that they are carrying far too much debt and become concerned about it.
  • They now have no cash balances and are totally dependent on the banks as sources of cash and credit.
  • Then comes the car. The banks  lend the money for a car at 12 -15%

What  you have to know that would take away the power of the banks, and what the banks don't want you to know

It's this. A well organized mortgage home loan can allow the householder to self fund their personal loan and credit card requirements normally sourced from the banks. Anyone can do it and the result is the same for all people. The banks' fear is they will only "get" the low profit home loan and miss out on all the normal profit. See table above.

When you start seeing a mortgage as wealth creation you alter your perception  to wealth creation and  your dependence on the bank.   How can that happen?   Its all about making additional payments into your mortgage on a consistent basis. Contact a mortgage broker and ask to see the software and calculators that can demonstrate this.

  • Paying additional payments into the mortgage
  • Redraw money from the home loan rather than go to the bank for credit cxards and personal loans.

A surplus of $500 - $1000 a month can have a huge impact on the mortgage balances. How can these surpluses be created?  The simplest and least intrusive method is to debt consolidate all old debt with very high interest rates, replaced by new debt with low interest  rates.  This will  create a mortgage consolidated surplus. Use this consolidated debt surplus to create wealth by putting it into the mortgage.

How it works

  • House with a $300,000 mortgage
  • Paying 5.09%
  • 30 year mortgage
  • Paying $1627 per month in repayments
  • A consolidated debt or budget surplus of $1000 a month that is paid into the mortgage.

In 12 months you would have a redraw balance in the mortgage of $12,336.   Would this take care of most of the issues that come up which would normally  require credit cards and personal loans?   In 24 months the redraw balance is $26,314. Now you are heading to financial independence from the banks.

A determination to break the cycle and patience to build your cash balances before you start spending is the key. Just knowing  gives you the motivation to get to the redraw cash balance to gain the confidence to move forward to real wealth.

You now have the facts to plan moving forward.  So don't talk yourself out of contacting a mortgage broker.  Sitting and doing nothing only increases the stress and anxiety, not a good option


Finance Articles

5 simple tips for reducing your debt faster
Losing sleep from too much debt? Learn how to pay off your credit card bills faster! read more

Credit Cards Debt - How to freeze the Plastic Debt Dragon in Your Wallet - Start Living Again
Are you scared to open your wallet knowing there is a fire snorting dragon lurking in there. Here is... read more

Double your deposit in half the time
Saving is never an easy thing to do and saving for a deposit on a home is twice as hard. However, with... read more


Finance News

Personal Loans to help Australians in need: FSO
Oct 29 :: As Australia prepares to clean up following devastating fires and floods, Financial Services Online CEO,... read more

Small business loans to help Aussie businesses through tough times
Nov 27 :: Financial Services Online has today announced a new credit facility for Australian business customers... read more

Police issue warning about bank scam
Nov 20 :: Melbourne police are warning people about a scam in which fraudsters pose as bankers and ask for money.They... read more