RISING INTEREST RATES HAVE LED TO MORE AUSTRALIANS STRUGGLING TO MAKE MORTGAGE PAYMENTS, HOME LOAN MINIMISER IS KEY TO BREAKING THIS TREND
The Great Australian Dream, the belief that home ownership is the key to a better life and therefore an expression of success and security, is ironically causing more stress for mortgage holders. With the country’s current state, Karl Mifsud of Home Loan Minimiser agrees with this presumption as statistics show that more people are falling into mortgage stress.
The latest reports on homeownership show that up to a third of Australians could struggle to pay down their mortgages, if interest rates continue to increase. According to the Reserve Bank of Australia (RBA), low-income loan holders and late entrants to the market are most at risk for mortgage stress.
HOW EXTENSIVE IS THE PROBLEM
Since the global financial crisis of 2008, Australian housing has nearly doubled in price, making it one of the world’s most expensive housing markets. The price surge reached its most significant increase since the 1980s at an all-time high of 20% last year (2021).
The rising prices of housing aren’t the only problem. Potential buyers also witness a steep increase in mortgage rates, and experts believe it will only worsen over the coming months.
This would make paying loans a challenge for heavily indebted individuals in a country with an outstanding mortgage debt of 2 trillion AUD.
Analysts also point out that the rising interest rates in Australia isn’t proportional to wage hikes. The annual pay growth increased slightly in the first quarter to 2.4%, which is barely half of the pace of the inflation rate. These problems have created the perfect environment for Australians to be buried in more debt than they can manage.
Economists believe the only way around the decline in the homeownership rate is to lower the prices to make housing more affordable. They urge the government to conduct intermediary measures as a massive price correction is needed.
AN ALTERNATIVE SOLUTION
While these recommendations from analysts would surely relieve buyers, abruptly lowering mortgage rates isn’t as feasible. Furthermore, it doesn’t address the issue that homeowners spend most of their active years repaying mortgage loans, leaving them without any means to support themselves upon retirement.
Home Loan Minimiser inventor Karl Mifsud believes that a debt reduction method and tool is a better approach to help Australians utilise their existing income and reduce their paying period to potentially half the usual time it takes to finish a mortgage, which is 25 to 30 years.
This improved methodology and newly acquired patent innovation will redefine the way Australians think about their mortgages, says Mifsud.
Though his tool appears simple, Mifsud says it’s the simplicity that makes it great because it’s practical and doable. It works by utilising existing income and expenses details, including loan repayments and essential mortgage information—the user inputs these particulars into the specialised accounting tool. A tax variation form is registered with the ATO (Australian Tax Office), and with a designated credit card, all monthly expenses and income are re-appropriated. An additional payment amount, determined by the rental income and tax credits, is directed to mortgage repayments.
Mifsud says, “The truth is, if people follow what I’m teaching, it will change their life. They will pay off their home loan well ahead of the original 25 or 30 years and create a property portfolio of income-generating assets that will replace their income upon retirement. They can then pass on the learnings and the income-producing assets to their children or grandchildren.”
He’s able to create this accounting tool by tapping into his extensive knowledge and experience in mortgage loans and the financial industry. He takes a very complex topic and explains the current system, and his Home Loan Minimiser tool comes in bite-size modules using easy-to-understand terms.
AN ARRAY OF COURSES
Mifsud has also created a rich resource centre, containing courses covering a broad range of needs. Apart from the Home Loan Minimiser, he also shares discount hacks on almost everything from getting the best deals for a holiday to gaining sizable amounts of tax back into people’s pockets.
The resource centre also provides critical insights into the world of cryptocurrencies and e-commerce, as well as how to correctly identify and avoid scams. Mifsud appears to have covered the basics and more in debt reduction, wealth management and wealth accumulation.
While Mifsud has over 25 years of knowledge and experience in finance and mortgage, he reveals that he has consulted with some of the biggest brains and thought leaders to gain more inside knowledge.
When practised correctly, Mifsud believes the courses will help change not just the homeownership landscape, but how Australians manage their finances.
People who want to gain decades worth of industry knowledge to manage their finances and mortgages properly can check out the resource centre’s official website as Mifsud has started to offer the modules to the public.
KARL MIFSUD
