9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
Budget Section
1. Be realistic with what you put into this sheet
2. Choose a amount monthly only as your plan
3. Convert all amounts to match your plan. A converter is supplied in light yellow.
4. Enter in the cells (*) with black figures only. Cells with coloured figures are subtotals and
totals and are auto calculated for you, leave these untouched . (*)
5. Totals shown in blue are income amounts; totals shown in red are expense amounts
Part A: Income after tax
Your after tax income $4,120
Partner/ spouse after tax income $2,583 Converter
Pension/ benefit $0
Family payment $264 Annual amount: $31,000
Child support received $0 per week $596
Board money received $0 per fortnight $1,192
Investments (after tax) $0 per month $2,583
Other income (after tax) $0
TOTAL INCOME $6,967
Part B: Expenses
Home Rent $0
1st mortgage $1,450
2nd mortgage $0
Property rates $108
Property Insurances $0
Other loan repays $41
Other loan repays $250
Other loan repays $75
Other loan repays $458
Loan repays $2,274
Utilities Electricity $105
Heating oil $0
Gas $0
Home repairs $0
Mobile phone $45
Internet and Cable TV $0
Telephone $46 Converter
Transport Petrol $104 Annual amount: $600
Repairs $0 per week $12
Registration $50 per fortnight $23
Fines $0 per month $50
Insurance $28
Licence $1
Fares $0
Food Groceries $670
Meat $0
Fruit/Vegetables $0
Lunches $0
Pet Food $0
Take away food/ restaurants $180
Mortgage Corporation Network
9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
Education School Fees $150
Uniforms $40
Self Education $0
School excursions $10
Tutoring/Books $0
Sports/out of school activities $20
Pre-school $0
Child minding $0
Medical Health insurance $140 Converter
Doctor $50
Dentist $20 Annual amount: $240
Chemist $10 per week $5
Eye care and optometrist $0 per fortnight $9
Specialists/alternative therapies $0 per month $20
Pet and vet $0
Personal Clothing $100
Haircuts $40
Grooming/cosmetics $40
Entertainment $80
Sport $20
Club fees $0
Newspapers and Magazines $10
Holidays $300
Gifts $20
Pocket money - children $100
Drinks alcoholic $20
Cigarettes/Tobacco $0
Laundry/dry cleaning $0
Gambling/other $0
Donations $10
Videos/Movies $80 Converter
Postage $5
Pool/Gardening $0 Annual amount: $240
per week $5
Other Superannuation $0 per fortnight $9
Life/term/income Insurance $0 per month $20
Professional fees $0
Other expenditure $0
Total basic living expenses $4,876
We do not include an area for savings as this program is relative to debt reduction and not savings.
If you do not have a mortgage you may do a budget and include savings as a means of
progressing forward. However, it is a well documented fact that saving is a strategy that is fruitless
and very difficult in today's society. With the rate of return being low and the cost of bank fees and
the tax margin on saving plus the lack of incentive and the power of consumerism the real
alternative to saving is now forced saving. These are our observations only and not advice and
should not be taken or miss-construed as said.
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9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
Reduction Analysis Section
Enter in the cells (*) with red figures only. Cells with other coloured figures are subtotals
and totals and are auto calculated for you, leave these untouched . (*)
Applicant Name: Mr & Mrs Example
Property Location: Their Home
Value of Home $ 350,000.00 LVR 63%
New loan Amount $ 221,608.00
Payout Current Loan $ 198,000.00 inc penalty
Payout Other Loans $ 21,500.00 VISA 2000
Application fee $ 385.00 M'card 3000
Finance duty $ 758.00 Amex 1500
Valuation fee $ 275.00 Pers Loan 0
Searches $ 300.00 Other 0
Lender legals $ 390.00 Other 15000
Proposed or current Loan New loan
Principle & Interest Interest Only
Interest rate P&I 7.05% IO 7.35%
Term / Months 300 120
Loan Amount $ 221,608.00 $ 221,608.00
Payment Interest Payment Interest
$ 1,573.35 $ 250,398.45 $ 1,357.35 $ 162,881.88
Principle $221,608.00 $ 221,608.00
Total $ 472,006.45 $ 384,489.88
Savings $ 87,516.57 Plus 15 years off your mortgage and any additional savings made
Net Income per Month $ 6,967.00
Total Expenses per Month $ 3,959.35
New Mortgage Payment $ 1,357.35
From Budget sheet $ 2,602.00 (taking away any loans being absorbed)
Using the LOC (line of credit) or Redraw facility as an alternative is not very different in time frame
or application. If you are not exactly sure or confident of your ability to stay within your budget as
identified and fear that you may break out and spend any savings then it is far better to use the
Redraw facility and the principal of lesser redraw to principal reducing will apply. We suggest as a
standard approach the 75/25 mix. For example with a $200,000.00 loan $150,000.00 could be
redraw with the principal reducing to apply and a $50,000.00 LOC attached. It is important in a
reduction strategy not to change your life style but your way in which you apply your income... a
switch in your payment methodology and financing methodology. It is a known fact that consumer
debt is the financial killer in our modern consumer based society. The facts are these that your
consumer debt ranging between 14% and 31% will drain you financially. A mortgage that protects
your debt level while allowing you to accelerating the retirement of debt is a far more sensible
approach.
Mortgage Corporation Network
9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
Month Principle Income Expenses
1 $221,608.00 $6,967.00 $ 3,959.35
2 $ 218,600.35 $6,967.00 $ 3,959.35
3 $ 215,592.70 $6,967.00 $ 3,959.35
4 $ 212,585.05 $6,967.00 $ 3,959.35
5 $ 209,577.40 $6,967.00 $ 3,959.35
6 $ 206,569.75 $6,967.00 $ 3,959.35
7 $ 203,562.09 $6,967.00 $ 3,959.35
8 $ 200,554.44 $6,967.00 $ 3,959.35
9 $ 197,546.79 $6,967.00 $ 3,959.35
10 $ 194,539.14 $6,967.00 $ 3,959.35
11 $ 191,531.49 $6,967.00 $ 3,959.35
12 $ 188,523.84 $6,967.00 $ 3,959.35
13 $ 185,516.19 $6,967.00 $ 3,959.35
14 $ 182,508.54 $6,967.00 $ 3,959.35
15 $ 179,500.89 $6,967.00 $ 3,959.35
16 $ 176,493.24 $6,967.00 $ 3,959.35
17 $ 173,485.58 $6,967.00 $ 3,959.35
18 $ 170,477.93 $6,967.00 $ 3,959.35
19 $ 167,470.28 $6,967.00 $ 3,959.35
20 $ 164,462.63 $6,967.00 $ 3,959.35
21 $ 161,454.98 $6,967.00 $ 3,959.35
22 $ 158,447.33 $6,967.00 $ 3,959.35
23 $ 155,439.68 $6,967.00 $ 3,959.35
24 $ 152,432.03 $6,967.00 $ 3,959.35
25 $ 149,424.38 $6,967.00 $ 3,959.35
26 $ 146,416.73 $6,967.00 $ 3,959.35
27 $ 143,409.07 $6,967.00 $ 3,959.35
28 $ 140,401.42 $6,967.00 $ 3,959.35
29 $ 137,393.77 $6,967.00 $ 3,959.35
30 $ 134,386.12 $6,967.00 $ 3,959.35
31 $ 131,378.47 $6,967.00 $ 3,959.35
32 $ 128,370.82 $6,967.00 $ 3,959.35
33 $ 125,363.17 $6,967.00 $ 3,959.35
34 $ 122,355.52 $6,967.00 $ 3,959.35
35 $ 119,347.87 $6,967.00 $ 3,959.35
36 $ 116,340.22 $6,967.00 $ 3,959.35
37 $ 113,332.56 $6,967.00 $ 3,959.35
38 $ 110,324.91 $6,967.00 $ 3,959.35
39 $ 107,317.26 $6,967.00 $ 3,959.35
40 $ 104,309.61 $6,967.00 $ 3,959.35
41 $ 101,301.96 $6,967.00 $ 3,959.35
42 $ 98,294.31 $6,967.00 $ 3,959.35
43 $ 95,286.66 $6,967.00 $ 3,959.35
44 $ 92,279.01 $6,967.00 $ 3,959.35
45 $ 89,271.36 $6,967.00 $ 3,959.35
46 $ 86,263.70 $6,967.00 $ 3,959.35
47 $ 83,256.05 $6,967.00 $ 3,959.35
48 $ 80,248.40 $6,967.00 $ 3,959.35
49 $ 77,240.75 $6,967.00 $ 3,959.35
50 $ 74,233.10 $6,967.00 $ 3,959.35
51 $ 71,225.45 $6,967.00 $ 3,959.35
52 $ 68,217.80 $6,967.00 $ 3,959.35
53 $ 65,210.15 $6,967.00 $ 3,959.35
Mortgage Corporation Network
9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
54 $ 62,202.50 $6,967.00 $ 3,959.35
55 $ 59,194.85 $6,967.00 $ 3,959.35
56 $ 56,187.19 $6,967.00 $ 3,959.35
57 $ 53,179.54 $6,967.00 $ 3,959.35
58 $ 50,171.89 $6,967.00 $ 3,959.35
59 $ 47,164.24 $6,967.00 $ 3,959.35
60 $ 44,156.59 $6,967.00 $ 3,959.35
61 $ 41,148.94 $6,967.00 $ 3,959.35
62 $ 38,141.29 $6,967.00 $ 3,959.35
63 $ 35,133.64 $6,967.00 $ 3,959.35
64 $ 32,125.99 $6,967.00 $ 3,959.35
65 $ 29,118.34 $6,967.00 $ 3,959.35
66 $ 26,110.68 $6,967.00 $ 3,959.35
67 $ 23,103.03 $6,967.00 $ 3,959.35
68 $ 20,095.38 $6,967.00 $ 3,959.35
69 $ 17,087.73 $6,967.00 $ 3,959.35
70 $ 14,080.08 $6,967.00 $ 3,959.35
71 $ 11,072.43 $6,967.00 $ 3,959.35
72 $ 8,064.78 $6,967.00 $ 3,959.35
73 $ 5,057.13 $6,967.00 $ 3,959.35
74 $ 2,049.48 $6,967.00 $ 3,959.35
75 $ (958.17) $6,967.00 $ 3,959.35
76 $ (3,965.83) $6,967.00 $ 3,959.35
77 $ (6,973.48) $6,967.00 $ 3,959.35
78 $ (9,981.13) $6,967.00 $ 3,959.35
79 $ (12,988.78) $6,967.00 $ 3,959.35
80 $ (15,996.43) $6,967.00 $ 3,959.35
81 $ (19,004.08) $6,967.00 $ 3,959.35
82 $ (22,011.73) $6,967.00 $ 3,959.35
83 $ (25,019.38) $6,967.00 $ 3,959.35
84 $ (28,027.03) $6,967.00 $ 3,959.35
85 $ (31,034.68) $6,967.00 $ 3,959.35
86 $ (34,042.34) $6,967.00 $ 3,959.35
87 $ (37,049.99) $6,967.00 $ 3,959.35
88 $ (40,057.64) $6,967.00 $ 3,959.35
89 $ (43,065.29) $6,967.00 $ 3,959.35
90 $ (46,072.94) $6,967.00 $ 3,959.35
91 $ (49,080.59) $6,967.00 $ 3,959.35
92 $ (52,088.24) $6,967.00 $ 3,959.35
93 $ (55,095.89) $6,967.00 $ 3,959.35
94 $ (58,103.54) $6,967.00 $ 3,959.35
95 $ (61,111.19) $6,967.00 $ 3,959.35
96 $ (64,118.85) $6,967.00 $ 3,959.35
97 $ (67,126.50) $6,967.00 $ 3,959.35
98 $ (70,134.15) $6,967.00 $ 3,959.35
99 $ (73,141.80) $6,967.00 $ 3,959.35
100 $ (76,149.45) $6,967.00 $ 3,959.35
101 $ (79,157.10) $6,967.00 $ 3,959.35
102 $ (82,164.75) $6,967.00 $ 3,959.35
103 $ (85,172.40) $6,967.00 $ 3,959.35
104 $ (88,180.05) $6,967.00 $ 3,959.35
105 $ (91,187.70) $6,967.00 $ 3,959.35
106 $ (94,195.36) $6,967.00 $ 3,959.35
107 $ (97,203.01) $6,967.00 $ 3,959.35
108 $ (100,210.66) $6,967.00 $ 3,959.35
109 $ (103,218.31) $6,967.00 $ 3,959.35
Mortgage Corporation Network
9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
110 $ (106,225.96) $6,967.00 $ 3,959.35
111 $ (109,233.61) $6,967.00 $ 3,959.35
112 $ (112,241.26) $6,967.00 $ 3,959.35
113 $ (115,248.91) $6,967.00 $ 3,959.35
114 $ (118,256.56) $6,967.00 $ 3,959.35
115 $ (121,264.21) $6,967.00 $ 3,959.35
116 $ (124,271.87) $6,967.00 $ 3,959.35
117 $ (127,279.52) $6,967.00 $ 3,959.35
118 $ (130,287.17) $6,967.00 $ 3,959.35
119 $ (133,294.82) $6,967.00 $ 3,959.35
120 $ (136,302.47) $6,967.00 $ 3,959.35
Mortgage Corporation Network
9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
The above figures are represented in good faith and are believed to be true and
60
correct at the date of completion as supplied by the client and by other relative
parties. No liability can be placed on Mortgage Corporation Network Pty Ltd its
originators or its consultants. This representation is effectively showing how a
Mortgage Reduction program works in your relative situation and should not be used
in any other circumstances. Should you require confirmation of these figures please
consult your own Financial planner or accountant. This document is not for the
purpose of financial planning but is a representation of the facts relative to an LOC
(Line of credit) or (as explained above) Redraw facility incorporated in a mortgage.
All the calculations above are made on an interest only basis as the principle
reductions are made by way of full wages being paid against the balance of the New
Mortgage account on a monthly basis in advance. It is assumed that a consolidation
has been done to meet the requirements of the program in full. It is also assumed
that the borrowers keep one credit card to operate monthly general expenditure. This
is not a letter of approval either by means of calculation or representation or in
principal. This document in its entirity is the property and copyright of Mortgage
Corporation Network Pty Ltd. If this document is used outside its scope or authority
then please contact us on 07 55 918637 or email us at info@mortgage-corp.com.au
The use of this document is only applicable for and able to be used on Mortgage
Corporation Network Pty Ltd securitised mortgage products .
250000
Series1
200000
Series2
150000 Series3
Series4
100000
Series5
50000 Series6
Series7
0
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115
-50000
-100000
-150000
-200000
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9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
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9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
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9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
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9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
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9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
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9de87590-bd16-4fc1-91db-015e9c81f86e.xls Mortgage Reduction 10/24/2011 10:12 PM
Analysis
ould not be used
e figures please
expenditure. This
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