Mortgage Reduction Programs

Once a member with Prosperity Mutual, you will have access to all our debt Reduction facilities.
Owing your own home is the great Australian dream, but the amount of interest you pay to achieve that dream can be quite sizeable.
For instance, did you know that if you were paying 6.5% in home loan interest, your total payments would amount to more than double the original capital borrowed over 30-year period?

In other words, for each $10,000 of borrowing you will repay $22,700 back. For a $150,000 mortgage, you will have to repay a total of $341,000.

Since housing interest for Owner Occupation is not tax-deductible, home mortgage payments tend to comprise a substantial component of the take-home pay of the average Australian family.

Traditional bank mortgages are structured in such a way that in the first 10-15 years of a typical 30-year mortgage, very little capital is paid off the principal. This is because in the early stages of the loan, the balance is at its highest causing greater amount of interest to accrue and charge.

The Prosperity Mutual Reduction Program is a smarter way of accumulating wealth than traditional methods. The plan works without the need to increase the amount of income earned or necessarily changing lifestyle you have grown accustomed to.

MORTGAGE REPAYMENT ALTERNATIVES

There are now four methods available, which may be applied to the repayment of a mortgage with a view to reducing the interest cost and paying the loan off earlier.

LUMP SUM REPAYMENT

Though this option reduces the availability of “accessible reserves”, any additional payments have a positive effect on the loan balance because the financier calculates interest on a reduced principal balance.

LOOKING FOR A BETTER DEAL ?

Whether you are buying your first home or refinancing
Prosperity Mutual can help you save money on your home loan and guide you from initial consultation stage all the way through to settlement. Our company prides itself on providing its customers with a personal service second to none. Services operate in Sydney, Canberra and Melbourne.

CONTACT US TODAY ON 1300 854 667