12 November 2021

Turning your home loan into an asset: the new mortgage mindset

By: Shaun Lordan, Chief Product Officer

turning-your-home-loan-into-an-asset-the-new-mortgage-mindset

The way people do banking has changed immeasurably over the past few years. Nano is one of the new generation of financial institutions focused on cutting the confusion and red tape, and putting power back into the hands of the consumer. We don’t have the constraints and overheads of banks, but instead use new technology to be fast and agile. 

We’re all about making home loans accessible, making them easy, and most importantly helping you leverage yours to really get ahead.  

But first, you might need to change the way you think about your home loan.  

Mortgage as villain – or hero? It all comes down to perception

For many people, a mortgage has traditionally been seen as something onerous; a metaphorical weight looming above. But here at Nano, we don’t do ‘traditional’. So, let’s turn that perception on its head. We believe a mortgage can – and should – be a powerful financial tool – a way to really take control of your financial affairs and grow your wealth. It’s all in the way you structure your home loan, and the way you utilise it. 

Once you reframe things and start thinking of your home loan as the main hub from which all other finances may spring, it becomes easier to see how it can help serve as a wealth-builder. 

Centralise and consolidate 

A scattergun approach doesn’t serve anyone well when it comes to finances. Staying single-minded is key. If you have multiple debit or saving and credit cards accounts in addition to your main home loan, you’re dealing with multiple fees, not to mention a lot of hassle.  

You don’t need to overcomplicate things with multiple accounts. It may be preferable to pick a home loan that allows you to consolidate and manage your finances in one place. Nano gives you, as part of your home loan, an ‘offset sub account’ which you utilise in the same way you may use a transaction account – paying all your bills with a Nano Visa debit card, Apple Pay or Google Pay. So, you may automatically save on all those fees all while reducing the interest you pay. 

Having the home loan at the centre of your finances allows that home loan to remain efficient and to be paid down sooner. 

Bringing focus to personal goals 

We’ve all got ‘big-ticket’ spending items to aim for, whether that be private school fees, annual holidays, a renovation or perhaps a new car. 

Your Nano home loan recognises this by also creating optional Vaults within your offset sub-account that you can put set amounts of money into, targeting these goals, all while reducing the interest you pay on your mortgage. 

While this is happening, the value of your property may continue to grow. It may grow to the point where you can harness the increased equity in your property, to buy another one as an investment. And that’s where wealth-building really begins to happen. 

Remember, one home loan account means one centralised entity, and all of your money working together in the same place. You’re maximising the amount you can offset against your home loan, with the ultimate goal of decreasing your mortgage (and therefore interest payments).  

For example, if you have a $500,000 home loan, with $100,000 in your Nano offset sub account, rather than paying interest on your $500,000 loan, you only pay interest on $400,000. The money you have in your offset sub account, offsets your loan and reduces the interest you pay.  

Putting your mortgage at the centre

The power to watch your wealth grow – all on an app 

We’ve already established that we like to do things differently. At our heart, we are digital, and what really differentiates us from the others is the Nano app. It’s something most other  lenders don’t offer, but our customers love it.  

The Nano app lets you track your home loan in real time, taking note of all transactions and payments. You have instant access to your offset sub account, and can see your financial status clearly at a touch. And that’s a smart money move.  

If you’d like to see how running your finances out of a Nano home loan can make your money work harder for you get in touch.  

Make a smart money move.

Apply for a Nano home loan today. Approval in minutes, not weeks.