The start of a new year is the perfect time to reflect on your financial position and set goals for what you would like to accomplish. Here are five common financial goals and tips to help you achieve them.
1. Buy your first home
Buying your first home is a significant milestone, which requires saving for your deposit and finding the right loan for your personal circumstances. The current low interest rate environment and the Federal Government’s new First Home Loan Deposit Scheme (the Scheme) could help you become a homeowner this year. The Scheme aims to help first home buyers purchase a home sooner by allowing eligible first home buyers to purchase a home with a deposit as little as five percent without the need for lenders mortgage insurance.
G&C Mutual Bank is proud to help a new generation of home buyers as a participant lender in the Scheme. We have a range of competitive home loans to choose from, such as our award-winning First Home Premium Package.
If home ownership is your goal for 2021:
- Check your eligibility for the Scheme on the National Housing Finance and Investment Corporation (NHFIC) website.
- Alternatively, there are a number of other initiatives such as the First Home Owner Grant, the First Home Super Saver Scheme, and stamp duty concessions (please refer to your state or territory government website for further details).
- View our competitive range of home loans.
- Apply online or contact us to arrange your home loan.
- If you’re not eligible for the Scheme, contact us to discuss other options such as our Get Ahead Start Guarantor Option.
2. Improve your financial position
No-one likes to start the year with a Christmas debt hangover. However, 2021 could be your year for managing debt more effectively and creating a better financial position for yourself. Take action to manage your debt:
- Review your monthly income and spending via our Budget Planner.
- Reduce your non-essential spend such as retail therapy, meals out and holidays.
- Use your savings to pay off as much of your debt as you can.
- Remain committed to reducing your current debt and do not acquire any additional debt.
- Open a dedicated savings account, such as our Bonus Saver, to maximise your savings potential.
If you have multiple debts consider debt consolidation, which means combining all of your debts into one payment. You can achieve this by taking out a personal loan or, if you are a homeowner, by refinancing your home loan. Debt consolidation can help you manage your debt effectively by potentially:
- Simplifying your financial situation into one loan, which makes it easier to manage your finances.
- Enabling you to acquire more favourable repayment terms such as a lower interest rate.
- Easing your cash flow by reducing your monthly repayments or fees payable.
If improving your financial position is your priority this year, our financial advice partner, ClearView, is ready to help you with over 20 years’ experience in helping Australians achieve their financial goals.
3. Protect the people and things you love
Following a year of bushfires, storms, floods, and the COVID-19 pandemic, you may be considering how best to protect those you love, and how to prepare for the future. G&C Mutual Bank has partnered with leading insurers who can help protect you, your loved ones, and your assets with a range of insurance options available.
4. Renovate your home
Spending more time at home due to the global pandemic may have prompted you to improve your home. This year could be the year for adding that much-needed home office or updating the kitchen. Perhaps you have been inspired by interior design magazines or TV reno shows and have made a start on researching costs to set your budget for the project. If your funds need a boost, consider:
- Utilising a redraw facility – If you have an existing home loan, you may be able to use the redraw facility to help fund your home makeover.
- Top up – You may be able to borrow extra money against your current home loan to renovate your home.
- Refinancing – You may have extra value in your property that can be used for your renovation project.
- Taking out a personal loan – A personal loan can help bring your mood board of design inspiration to life. Unlike many personal loans, the rate on our award-winning Fair Rate Personal Loan is guided by your credit worthiness so you may be rewarded with a better rate depending on your borrowing history.
5. Start planning for retirement
It is never too early to start planning for your retirement. Your ideal retirement may involve spending quality time with friends and family, travelling the world, improving your golf game, or learning new hobbies. However, you may also have concerns about how you will afford a 'comfortable' retirement.
If you want to retire at 65, your retirement funds will need to last until age 85, at least, and likely longer. According to the Association of Superannuation Funds of Australia (ASFA) Retirement Standard dated September 2020, a comfortable retirement is likely to cost $62,083 per year for couples aged 65-85, and $43,901 per year for single retirees aged 65-85. These figures assume that the retiree/s own their own home.
Most retirees will rely on a combination of superannuation savings, personal savings and the Age Pension. However, many are likely to have a ‘retirement savings shortfall,’ where they just do not have enough assets to cover a comfortable standard of living once they have stopped working.
If you already own your home, it could be the key to unlocking extra funds for your retirement:
- Your home is likely to be your greatest asset and releasing the equity from your home will not only raise retirement funds, but will also enable you to enjoy your retirement in your own home.
- Our Retirees Access Home Loan is a reverse mortgage specifically designed to help those who have reached or are nearing retirement age utilise the equity in their own home.
- Contact us to find out more or connect with one of our Mobile Lenders.
- If you are looking for financial advice to help you plan for your retirement, our financial advice partner, ClearView, is ready to help you.
Life’s always busy, but prioritising your finances and taking action can help you make the most of what you have. Contact us for a free Financial Health Check or connect with one of our Mobile Lenders.
Whatever financial goals you set for 2021, we’re ready to help you achieve them.