Understanding how mortgages really work
by Angela Dye , Home Loan Expert at Richmond Residential Pty Ltd
Buying a home and borrowing the money is the biggest purchase most people have in their lifetime . However , many don ’ t really understand how the mortgage works and therefore they pay their loan as instructed by the bank .
When we borrow money , there are two parts to a loan . The first part is the principal . The principal is the amount of money we borrow . The second part is the interest . Interest is what we are charged for using somebody else ’ s money . The term on the home loan is normally 30 years . Most home loans are set up to be paid monthly .
The bank will direct debit from your nominated bank account on a particular due date that is determined by them . Interest on a loan is calculated daily and charged monthly to home loans . Your interest is compounding throughout the term of the loan . You are being charged interest on the interest as well as on the principle of your loan .
As the amount we borrow to buy property is usually in the hundreds of thousands it ’ s easy to become overwhelmed , and although we want to find a way to reduce the cost of having a mortgage , there seems to be very few options for us . We tend to follow the rules , doing exactly what the lender has told us to do as we believe , we really don ’ t have a choice . The good news is , we do have a choice . How ? By taking back control of our money .
Taking control starts with understanding how the loan works and how we can make it work better for us . One of the rules of lending is you can only be charged on what you owe . The common setup of a mortgage means that we are charged on a larger amount of debt each day over the period of the month , and this happens because the bank is in control of when and how you pay your mortgage .
Mortgages are all smoke and mirrors , we are led to believe they are very complicated and because we don ’ t understand them , we simply don ’ t try in fear of getting it wrong .
We are all going through a difficult time at present , with cost of living and interest rate increases . Every dollar that you can save helps you to maintain your lifestyle and in some cases your mental well-being .
With the correct professionals around you , it is possible to save thousands of dollars and reduce the term of your loan substantially .
If you would like to understand more about how to pay less for your home loan call Angela on 0414 608 970 to discuss your situation or visit www . richmondresidential . com . au .
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Anzac Day Schools ’ Awards
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with Susan Templeman MP
This national competition recognises the work of students , teachers and schools who engage with veterans and honour Australia ’ s wartime history .
Every year on ANZAC Day we see school students proudly representing their schools at services across the Hawkesbury and I know how proud I feel of our younger citizens at these ceremonies .
And in the lead up to the commemoration , many students spend time learning more about the sacrifices made by veterans .
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The Federal Government ’ s Annual ANZAC Day Schools ’ Award encourages students to deepen their understanding .
The theme of this year ’ s ANZAC Day Schools ’ Awards is the commemoration of the 50th anniversary of the end of Australia ’ s participation in the Vietnam War .
The awards are an opportunity for local students to study the experiences of the proud community of Vietnam veterans we have here in the Hawkesbury , including the National Servicemen .
As we know , Vietnam soldiers didn ’ t always receive the recognition for their
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service and sacrifice that was so deserved , and the stories of what they experienced at their homecoming is distressing .
60,000 Australians served in the Vietnam war and 523 lost their lives in service to our nation .
There are many stories to be told , including within students ’ families and in their neighbourhood , including the members of our Richmond and Windsor RSL Sub-branches who have many members who served in Vietnam .
I ’ d encourage students to have a conversation with a willing Vietnam vet .
The ANZAC Day Schools ’ Award is a meaningful opportunity for schools and
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students to connect with local Vietnam veterans to gain a deeper personal understanding of Australia ’ s wartime past .
There are also prizes for schools , and I am looking forward to schools across the Hawkesbury sharing how their students learn about and honour those who served Australia and our allies during the Vietnam War .
Entries close on May 31 , 2023 . Visit the Anzac Portal of the Department of Veterans Affairs for further details , including prizes and entry conditions : www . anzacportal . dva . gov . au / adsa .
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THE HAWKESBURY INDEPENDENT theindependentmagazine . com . au ISSUE 155 // APRIL 2023 19