Your money new year resolution hit list

The great thing about a new year is it gives us a chance to take stock of our lives and identify areas for improvement. That applies particularly to money.

If you’re thinking about buying a property in 2025, already have a home loan, or you’re running a business – or all of the above – there are steps you can take to improve your situation.

Purchasing a property

To increase your chances of qualifying for a home loan and to maximise your borrowing capacity, you should aim to make yourself as creditworthy as possible in the eyes of lenders. That can be done by:

• Reducing your expenses. Shop around for better deals on your electricity, internet, phone and insurance plans; cancel subscriptions you barely use; eat in more often; and buy less stuff.
• Increasing your income. Ask for a raise, work more hours, get a second job or sub-lease a spare room in your home.
• Improving your credit score. Begin by ordering a free copy of your credit report, from Equifax or Experian. If you have incorrect negative listings, you can apply to have these removed. If you have a suboptimal score, you can work to increase it by paying off loans, making all your repayments on time, limiting your credit applications and reducing your credit card limit.

Keep a close eye on your mortgage

Do you already have a home loan? In that case, it is a good idea to remain aware of your interest rate and features, and compare that to other loans on the market. This is particularly important when there are cash rate cuts as lenders will likely cut interest rates and you may find some offering more competitive rates for new customers.

Contact me to see if your loan is still suitable and your interest rate is still competitive. I’ll let you know if you could improve your situation by refinancing to a new loan – and, if you decide to proceed, manage the application for you.

If you find yourself with additional debts to manage – such as a maxed-out credit card, a car loan or a personal loan – depending on your scenario, you might be able to reduce your interest bill (and simplify your finances) by consolidating several debts into your home loan. I’ll be happy to crunch the numbers for you, so you know whether debt consolidation would be a good move.

Improve your business in 2025

For business owners, there are two contrasting situations to be aware of. On the one hand, business failures are continuing to rise and are now at their highest rate since October 2020, during the pandemic, according to CreditorWatch. On the other hand, the Reserve Bank of Australia has forecast that economic growth will increase in 2025 (albeit off a low base).

If you’re thinking defensively, we could help you with cash flow finance. If you’re thinking about growth – and potentially taking advantage of the instant asset write-off – we could help you secure a business loan. Either way, get in touch to discuss your scenario, so we can work out a plan to move your business forward.

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