Brexit- Will it affect your home loan rate?

Posted by John on June 28, 2016

The short answer is yes.

The long answer is that 17.4 million people in the UK voted to leave the EU.

16.1 million voted to stay.

Moodys a rating agency, rates public companies, banks, and world economies has recently downgraded the UK to a rating of Aa1.

In comparison Australia is rated AAA.

The result of Brexit, is economic uncertainty throughout the world. For instance the UK is not a major purchaser of Australian goods or services but the EU is a major buyer of Chinese goods. If Europe slows, that could slow China’s growth which in turn could see China buying less goods and services from Australia.

How does this affect interest rates in Australia?

Because of the uncertainty that Brexit has caused, the yields on the Australian government 10 year bond (a safe haven for international investors) dropped last week to a record low of 2.03%. This is an indication of a Reserve Bank interest rate drop. But when? The next three months?

I believe interest rates will come down before they go up again. There is at least 1 interest rate drop perhaps two within the next 1-2 years. Then if all goes well and yields increase, so will interest rates.

What am I going to do?

I am going to stay variable and not lock in my rate.

‘AAA’s home loan rate is 3.74% variable, which allows business and households to take out cash of up to 80% of the value of the property for business, investments and consolidation. It also includes a 100% offset account.

Until next time,


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What is an Offset Account?

Posted by John on June 7, 2016

An Offset account is a great way to reduce your monthly mortgage repayments.

Right now we have a great product with the lowest rate we have seen in a long time – 3.74% p.a.

You can get this great rate with a 100% Offset Account and cash out to 80% of our property value.


Well yes you can do that but I am also advocating put it ‘next’ to the house…

What does that mean?

With a 100% offset account, you can consolidate your debts, borrow for a business,  or buy an investment property

What exactly is an OFFSET account?

An offset account is an account you use to draw down CASH from your mortgage.


Lets  assume you have a $650,000 home loan/ investment and you have $50,000 in your offset account.

This means you will be paying interest on $600,000 at 3.74% instead of the $600,000.

It is a great tool for business owners who put all their business income, PAYG, tax savings inter alia, into their offset account.

Home owners can put their pay, bonuses or gifts in this account.

When you need the money- you simply ‘drawdown’ from your offset account. The more you have in this account, the smaller your loan repayment. An offset account is LINKED to your HOME LOAN.

Using the scenario above, if you your rate on your home loan is 3.74% on a $650,000 loan you will pay $2025 per month.

If you have added $50,000 to your offset account, you will pay $1870 per month

Using this scenario, you can be saving yourself $1860 per year- in a time when every dollar counts- why not? Using an offset account will also keep you on top of your loan and perhaps even sway overspending.


It just makes sense to have an offset account, dont you think?

If you have answered YES, then give us a call today and we will show you how…

Until next time,


2012-11-26 18.32.38



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Increase your cashflow

Posted by John on May 30, 2016

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AAA Seniors Equity Finance

Posted by John on May 3, 2016


At a recent luncheon with the NSW Premier Mike Baird, he was asked what policy does he loses sleep over at night. His answer was Aged Care and Retirement funding. The estimated cost to fund retirement would be in excess $40 billion per annum.
If this is a concern for our leaders, then it should be a concern for anyone over 60 years old and/or their children.

What is Seniors Equity Finance?

Following the Governments Negative Equity Pledge, seniors equity finance can be divided into two parts the first is when a senior wants to move to a retirement village or aged care facility and needs up to $850,000 for a refundable deposit to do so. The easy fix is to sell your home, but now with the Governments  pledge, it may be better for you to borrow the funds against their asset, get the care you want, but keep the family home.
The second part, is available to those of you who are still comfortable living at home but are asset rich and cash poor, you just need funds to continue your desired lifestyle including renovations, purchase of new motor vehicles, travel or to consolidate debts.

How can AAA Seniors Equity Finance assist you?

We have a number of lenders in this particular field. Rates start at 5.99% for larger loans where applicants need a large deposit to get into retirement or nursing facilities. Loans from $20,000, it is 6.5% interest and these funds can be used for travel, motor vehicles, consolidations etc.
There are no upfront fees and no valuation for properties up to $2 million. Monthly interest isnot payable it is capitalised.

John Macalyk is a SEQUAL approved advisor and a licenced credit advisor.
Contact him for questions or information today:
02 9299 1144 or email

For a confidential chat, call Ian Taylor 0418 201 037

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