In this success story, we had the opportunity to assist a customer who had faced financial difficulties with dishonors and late credit card payments. Through careful analysis and tailored advice, we were able to recommend a strategy that not only resolved their banking issues but also resulted in significant interest savings and a shorter loan term. Read on to discover how we turned their situation around and put them on the path to financial success.
Identifying the Challenges:
Our customer approached us with a concerning financial history, including three dishonors in the last six months and late payments on a credit card. These issues not only negatively impacted their credit score but also raised concerns about their ability to manage their finances effectively. Their existing lender had provided them with a mortgage rate of 8.32%, which was eating into their budget.
A Thorough Review:
Our team embarked on a comprehensive review of the customer’s financial circumstances. We examined their income, expenses, and existing mortgage terms to identify potential solutions that would address their banking challenges and set them on a more favorable financial trajectory.
Tailored Recommendations:
After careful analysis, we recommended that the customer explore an offset product with their current lender. An offset account allows borrowers to link their savings to their mortgage, effectively reducing the interest payable on the loan. Given that the customer had substantial savings of $140,000, we saw this as an opportunity to leverage their funds to their advantage.
- Benefits of the Offset Strategy: By switching to an offset product and utilizing their savings, the customer stood to gain multiple benefits:
- Easier Banking: With an offset account in place, the customer could streamline their banking operations, minimizing the risk of dishonors and ensuring smoother financial management.
- Lower Interest Rate: The transition to an offset product allowed the customer to secure a significantly lower mortgage rate of 5.98%. This reduction alone would result in substantial savings over the life of the loan.
- Interest Savings: Leveraging their $140,000 in savings, the customer could now benefit from interest savings of approximately $41,000. These savings could be redirected toward other financial goals or used to accelerate mortgage repayment.
- Shortened Loan Term: Through the use of an offset account, the customer could also expect to reduce their overall loan term by five years. This meant that they would be mortgage-free sooner, saving both time and money.
By carefully assessing the customer’s financial situation, recommending an offset product, and leveraging their significant savings, we were able to turn their challenges into a triumph. Our expertise and dedication to finding personalized solutions enabled the customer to achieve easier banking, secure a lower interest rate, save a substantial amount in interest payments, and significantly reduce their loan term.
At Mynt Financial, we understand that every client is unique, and we strive to find tailored solutions that align with their specific needs and goals. If you’re facing financial challenges or seeking ways to optimise your mortgage, our experienced team is ready to guide you toward a brighter financial future. Contact us today to discover how we can help you achieve mortgage success
