HOME LOAN RATE
REDUCER
A LIFE CHANGING OPPORTUNITY
The Home Loan Rate Reducer is an innovative loan product described as a
"Revolutionary Game Changer" in the mortgage industry which is available exclusively through Lockstar Finance, thanks to
Crown Money Management.
HOW IT WORKS?
The ATO (Australian Taxation Office) has a special
Product Ruling PR2015/2 which allows your home loan interest rates to be rebalanced
every year as your own home loan balance reduces as well. As you pay off your own home loan and the balance reduces every year, we reward you by
reducing the interest rate as well.
"How Great is that
for Motivation?"
We simply dial down the interest
rate on your own home loan to as low as 2.25% p.a. (Floor Rate) and we wind up the interest rate on your investment home loan to
5.79% p.a. (Maximum Rate),
this equates to a combined average interest rate of 4.65% p.a. Once your own home loan
arrives at the lowest 2.25% p.a. interest rate then the investment home loan interest rate begins to drop.
TRADITIONAL HOME LOAN STRUCTURE
Owner
Occupy
4.20% p.a.
Investment
4.50% p.a.
Principal & Repayments
Interest Only Repayments
NO Tax Deductions
Standard Tax Deductions
Standard Interest Rate
Standard Interest Rate
Own Your Home Longer
Own Your Investment Longer
HOME LOAN RATE REDUCER STRUCTURE
Owner
Occupy
2.25% p.a.
Investment
5.79% p.a.
Principal & Repayments
Interest Only Repayments
NO Tax Deductions
Increased Tax Deductions
Reduced Interest Rate
Increased Interest Rate
Own Your Home Sooner
Own Your Investment Sooner
FEATURES & BENEFITS?
The Home Loan Rate Reducer offers great benefits which include:
-
An
Interest Rate that
Reduces every year as your
Home Loan
Balance Reduces;
-
Saving up to 2.99% off your Home Loan Rate;
-
Variable Interest Rate as low as 2.25% on your Home Loan;
-
Owning
your Home
& Growing
Equity
faster than ever before;
-
Saving Thousands of
Dollars every year in
Interest;
-
Reducing your
Home Loan
Term Substantially;
-
Increasing your Investment Deductions which can provide
Greater Tax
Deductions;
-
Increasing your Net Worth by reducing Debt
& Interest expenses.
REAL LIFE EXAMPLE - JACK & DIANE, PORT
MELBOURNE, VICTORIA
Jack & Diane have a $350,000 home loan
and a $450,000 investment loan structured under the Home Loan
Rate Reducer program as per above. Their monthly income was
$11,000 and their monthly expenses were $6,000.
At the
start of their
Home Loan Rate Reducer program,
Jack & Diane’s home loan interest rate was 3.04% and their
investment home loan interest rate was 5.99%. With the help of
Crown’s Money Coaches, in year one the couple will pay $49,360
off the principal of their home loan.
Here's how the figures changed
on their Home Loan over the last four years:
Year
Loan Amount
Interest Rate
Principal Paid
1
$350,000
3.04%
$49,360
2
$300,640
2.76%
$51,702
4
$195,161
2.50%
$55,120
After the fourth year, their investment loan rate starts
reducing! A traditional Home Loan (4.29% interest rate) would
accrue $272,799 in interest payments over its lifetime and take
approximately 30 years to pay in full.
Based on Jack &
Diane's income and expenses listed above, the Home Loan Rate
Reducer would accrue $36,270.41 in interest charges and will be
paid off within 7 years - saving them over $236,000 in interest
charges and 23 years!
HOW IT WORKS?
The ATO (Australian Taxation Office) has a special
Product Ruling PR2015/2 which allows your home loan interest rates to be rebalanced
every year as your own home loan balance reduces as well. As you pay off your own home loan and the balance reduces every year, we reward you by
reducing the interest rate as well.
"How Great is that
for Motivation?"
We simply dial down the interest
rate on your own home loan to as low as 2.25% p.a. (Floor Rate) and we wind up the interest rate on your investment home loan to
5.79% p.a. (Maximum Rate),
this equates to a combined average interest rate of 4.65% p.a. Once your own home loan
arrives at the lowest 2.25% p.a. interest rate then the investment home loan interest rate begins to drop.
|
TRADITIONAL HOME LOAN STRUCTURE |
|
| Owner
Occupy 4.20% p.a. |
Investment 4.50% p.a. |
| Principal & Repayments
|
Interest Only Repayments
|
| NO Tax Deductions
|
Standard Tax Deductions
|
| Standard Interest Rate
|
Standard Interest Rate
|
| Own Your Home Longer
|
Own Your Investment Longer
|
|
|
|
|
HOME LOAN RATE REDUCER STRUCTURE |
|
| Owner
Occupy 2.25% p.a. |
Investment 5.79% p.a. |
Principal & Repayments
|
Interest Only Repayments
|
NO Tax Deductions
|
Increased Tax Deductions
|
Reduced Interest Rate
|
Increased Interest Rate
|
Own Your Home Sooner
|
Own Your Investment Sooner
|
|
|
|
FEATURES & BENEFITS?
The Home Loan Rate Reducer offers great benefits which include:
REAL LIFE EXAMPLE - JACK & DIANE, PORT
MELBOURNE, VICTORIA
At the
start of their
Home Loan Rate Reducer program,
Jack & Diane’s home loan interest rate was 3.04% and their
investment home loan interest rate was 5.99%. With the help of
Crown’s Money Coaches, in year one the couple will pay $49,360
off the principal of their home loan.
Here's how the figures changed
on their Home Loan over the last four years:
Year
Loan Amount
Interest Rate
Principal Paid
1
$350,000
3.04%
$49,360
2
$300,640
2.76%
$51,702
4
$195,161
2.50%
$55,120
After the fourth year, their investment loan rate starts
reducing! A traditional Home Loan (4.29% interest rate) would
accrue $272,799 in interest payments over its lifetime and take
approximately 30 years to pay in full.
Based on Jack &
Diane's income and expenses listed above, the Home Loan Rate
Reducer would accrue $36,270.41 in interest charges and will be
paid off within 7 years - saving them over $236,000 in interest
charges and 23 years!
Please Note:
In the example above, the 2.50% p.a
Interest Rate was the lowest "Floor Rate" at the time which was
prior to the "Reserve Bank of Australia" interest rate cut back in
May 2016, the RBA Interest Rate was 2.00% p.a. Since May 2016 the
RBA interest rate dropped by 0.25% p.a. to a record low 1.75% p.a.
interest rate so the new "Floor Rate" as at 01/06/2016 is now 2.25%
p.a. The Maximum Rate for Investment Loans has now dropped from
5.99% p.a. to 5.79% p.a. which is current as at 01/06/2016.
ARE YOU ELIGIBLE?
In order to qualify for the Home Loan Rate
Reducer and receive an interest rate as low as
2.25% p.a. on your own Home Loan, you must:
Don't have an
Investment Property? - That's Okay!
We'll help you pay off
your own mortgage faster than ever before,
slash the interest charges
on your home loan, reduce your
mortgage term and build equity in your own
property so that you can
Ask Us How! - 1800 557 350
Things You Need to Know! - Last Updated 01/06/2016
Cash Rebate is eligible to all Australian Citizens
& Residents over 18 years of age and available from 01/06/2016 to 31/12/2016.
Cash Rebate is payable to "Referrers" Only and is payable to EACH sole
or joint Applicant referred to Lockstar Finance. Cash Rebate is
payable to "Referrers" for EACH product sold even if multiple products
are sold by the same Applicant. Applicants being referred are "Not
Eligible" for Cash Rebate unless they refer their own Family Member or
Friend to Lockstar Finance. Cash Rebate will
always be paid to Referrer via Bank Transfer to Nominated Account once Applicant's Loan Account has been
funded or
settled by the Lender/Bank and not before. Referrer must sign a
Referral Agreement for EACH Applicant Referred to Lockstar Finance and
AGREE to the Terms & Conditions provided. Applications
are subject to credit approval. Fees and charges may be
payable.
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