What's more important - Rates or Structure?

Do you know the difference between line of credit, revolving credit, flexi, orbit and redraw facilities?

Well, there isn’t really much of a difference, if any. They are effectively different names for the same thing - often by different lenders.

But, structure isn’t important right? 

It’s just about getting the best rates right? 

All banks are the same right? 

Wrong - Structure is as, if not more, important as rates.  Having the best fixed rate but not channeling spare income into a “flexi” style account or offsetting your mortgage could be the difference between taking 30 years to pay your mortgage instead of, say, 20 Years - i.e. reducing the time taken by 10 years.

The point is, borrowers and lenders are not all the same – some people earn the exact same salary every week or month.  Some have large commissions or bonuses.  Some have casual income or irregular payments.  Optimising how you utilise your income and reducing the interest you pay often comes down to structuring it correctly.

Need help with your structure?

Make an appointment to talk or call me on 021615907.

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