End of year taxation

There’s no doubt Victorian households are doing it tough right now.

A recent survey by Finder found that almost half of Australians (45 per cent) had less than $1,000 in their bank account, and one in five admitted to having nothing in savings.

That means four million Aussies are living pay check to pay check.

And while tax cuts that came into play from July 1 are no doubt welcomed by everyone, they don’t go far enough in helping ease the pressure currently faced by so many families.

Luckily, for those with a mortgage, there are some simple things you can do that can save you thousands of dollars a year:

Make sure you have the lowest interest rate possible: Shaving a small percentage off your mortgage might not seem worth the effort, but just 0.5 per cent difference on your $800,000 mortgage means $4,000 in your back pocket. You can and should be reassessing your interest rate every year to make sure you’re getting the best deal. Ensure offset accounts are working to benefit your household: If you do have a reasonable amount of savings, sit these in an interest-only split or put them in redraw and seek a reduced minimum monthly payment. If you have $50,000 in savings (firstly, go you!) this could reduce your minimum repayments by about $300 a month. If you’re not sure how to do this, your mortgage broker can help set this up for you. These simple solutions can be easily managed by a broker, taking the fuss and paperwork out of your hands and ensuring you get the best deal possible.

So, if you want to still be able to take the family holiday this winter or plan for a long summer that’s full of fun and not financial stress, it’s time to take action.

Money isn’t everything, but it shouldn’t hold you back from living the life you love and deserve.

At Tribe, they’re local mortgage brokers focused on ensuring you and your family can still live the lifestyle you’ve chosen by the coast.

Jamie Hyndman

Senior Finance Strategist & Tribe Leader, Tribe Financial