🎙️Cate, Dave and Mike return with a practical follow-up to episode 365, this time digging into how to make your home loan and mortgage strategy work harder now that another rate rise has taken the cash rate to its highest level in 15 years.

Dave opens with a timely warning for home owners planning to convert their home into an investment property to access the grandfathered negative gearing benefits covered in episode 369. Principal and interest repayments may be quietly eroding future tax deductible debt, so is it time to review your loan structure before you upgrade?

The trio then unpacks the credit card and offset strategy, using the card’s interest-free period to keep cash in offset for longer. Mike is clear on the catch: it only works if the card is paid in full every month, because credit card interest of 20% or more quickly wipes out any saving on a mortgage sitting around 6%.

Fixed rates come next. Mike explains why the variable portion of a split loan should comfortably exceed your offset balance, Dave frames splitting as a win-win hedge, and both flag the break costs that can catch borrowers who sell, refinance or repay more during the fixed term.

📊 Is your equity position shifting under your feet? Mike warns that softer values could push some refinancers over 80% LVR and into Lenders Mortgage Insurance, while Dave explains why the valuation lag means the equity may still be there, for now. He also covers when consolidating loans with one lender can help negotiate a sharper rate.

Debt consolidation, balance transfers and cashback offers of $2,000 to $4,000 all get the once over, before Dave turns to household cash flow, the small leaks that add up, and one simple tip anyone can action today.

From loan structure to money management, this episode is a reminder that smart mortgage strategy is rarely about chasing the lowest rate. It’s about the whole structure working together for where you’re headed.

And our gold nuggets……..

Mike Mortlock’s gold nugget: “Don’t just be a passenger, riding along with your mortgages.” Mike cautions buyers about being loyal customers to the banks.

Dave Johnston’s gold nugget: A good mortgage strategy is not just about the loan you have today, but its about whether your structure is appropriate for where you are headed. Today’s structure can either support your future plans, or work against them.

Cate Bakos’s gold nugget: Cate talks about some of the disadvantages buyers can face if they don’t think about their future deductable expenses when converting a primary residence to an investment. The two main catches hinge around redraw vs offset, and how debt is paid down.

Related episodes:

#30: Money Management – 7 Steps to Success

#128: Upgrading and planning for the long-term home: how to keep a home as an investment, buying or selling first and more.

#309: How to Boost Borrowing Power – Debt Management Strategy for Smart Property Decisions & Unlock Investment, Home & Refinance Opportunities

#359: The Refinance Playbook – The Numbers, Strategy & Timing Explained

#365: Reviewing Your Home Loan – Negotiating Interest Rates Like a Pro, Offset Strategy & Refinancing Without Regret

#369: The Negative Gearing Loophole Available for Established Properties that No One’s Talking About

Upcoming ep: #385 – Buying a Renovated Home – Missing Certificates, Purchaser Liability and the Rules in Each State

Dave’s Domain Article we referenced in the show: https://www.domain.com.au/advice/how-to-turn-your-first-home-into-an-investment-property-when-upgrading-866473/