Did you Know?

Posted by John on July 28, 2016

What affect does low inflation have on your household or business?

Well first, lets see what the Australian inflation figure is today, wow, 1% per annum, yes, the lowest since 1999.

I remember when inflation was 10%

When it was 10% the Reserve bank raised interest rates and at one stage we were paying 18-20% – who else remembers?

But right now, the Reserve Bank is considering lowering interest rates, in order to boost spending and boost growth in the Australian economy.

This is good for all of us with DEBT.

But not too good for retirees or people relying on investment income from their banks to pay for normal living expenses and outgoings.

When the 1% figure was announced over 60% of economists in Australia believe the Reserve Bank would lower the cash rate by 0.25%, but only yesterday (July 28th) news came out that finally the U.S.A was going to RAISE their interest rates.

What does this mean for their economy?

Well this means their economy is on the up, and when the USA coughs, Australia has a sneeze, now only 40% of Australian economists believe the Reserve Bank will lower rates next Tuesday.

So keep your ears open- what will the Reserve Bank decide next Tuesday afternoon?

What do you think?

So the cost of debt may come down next Tuesday, if this happens what can you do that will help your home and/or business cash flow?

Ring a credit (debt) advisor, consolidate – refinance your higher interest rate debt to a lower rate.

Until Next Time,


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Take Control of your Finances

Posted by John on July 6, 2016

Image result for taking control of your life


Show Leadership with your Home Economy by making prudent decisions for your family and/or business expansion.

This is what we expect from our country’s politicians. We want and expect LEADERSHIP.
Out of 70 odd Liberal Politicians who won seats at the last Federal Election, only one increased their winning margin since the last election…

Who was it? Julie Bishop, who had an increase over last time of 2.65 % giving her a total win margin this time of 20.8 %. Congrats Julie…

Take OWNERSHIP of your finances.
Why pay more each month than you need to? Every dollar counts so let us help you assess your options…
Recently we have saved many families and businesses from hundreds to tens of thousands of dollars per year through our access to a variety of lenders. Join the ‘AAA’ family today.

Did you Know?….
‘AAA’ is offering a one-on-one complimentary conversation, by phone,  email, text or in person for the month of July 24 hours a day seven days a week.
At any time, no matter where you are and what you are today you have access to a Licenced Credit Advisor who will learn your priorities and goals and discuss how to reduce your debt by reducing your monthly repayments-  TODAY.. (02 9299 11 44)

Until next time,

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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 john@aaamortgages.com.au

For a confidential chat, call Ian Taylor 0418 201 037 ian@seniorsequityfinance.net.com

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