Mortgages & Debt

For most people, debt plays a crucial part in our financial journey. It allows us to bring forward the acquisition of an asset to today, rather than waiting until we’d saved up enough of our own capital to purchase it, risking it getting too far out of reach. We can apply this to both lifestyle assets, like our home, or investment assets, like property and shares.

Going into debt is not without risk and it should be done as part of a well thought out plan, considering not just the here and now, but also the path ahead and the things that are important to us.

Here at Strategy First, we can help you see the important role debt plays, but also help you see past it. Most people experience debt as a significant burden, which often leads to narrow thinking and a path trodden with ball and chain. A holistic plan, with a bespoke debt strategy, can help you free those shackles and achieve the sense of financial wellbeing that you deserve.

A robust debt strategy will consider the following:

• Debt structuring, including ownership of the asset being purchased and whether this debt should be Interest Only or Principal & Interest. It is crucial you make the right decisions at the time of purchasing the asset.
  
  
• Optimising tax deductibility, now and in future – less tax means more money in your pocket.
  
  
• Interest rates and the after-tax cost of the interest expense.
  
  
• Structuring of cashflows to service debt, your lifestyle needs and broader strategies.
  
  
• Risk management measures and stress testing, giving you the peace of mind you can make this significant commitment without leaving your family exposed.
  
  
• The role of offset accounts and redraw facilities, including how to pay off debt as fast as possible.

We work collaboratively with our professional network of mortgage brokers to ensure optimisation between your financial strategy and the product solution, ensuring this is reviewed regularly. We do not accept referral commissions from the professionals we partner with, ensuring we align your needs with the right professional.

Working with a mortgage broker makes sense in almost all instances. They will help you find the right lending solution that fits with your financial strategy and do the heavy lifting for you. They will also hold your lender accountable to providing you with the best possible interest rate (if you don’t ask you don’t get).

If you are considering financial decisions that involve debt and don’t want to get it wrong, please reach out to us for a complimentary appraisal of your needs to see if we can help.