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Thread: What is FHX?

  1. #1
    Join Date
    Aug 2014
    Posts
    262

    Default What is FHX?

    Can they actually save me money on my mortgage? How does it work? Sounds like a too good to be true scenario

  2. #2
    Join Date
    Oct 2013
    Posts
    1,628

    Default

    Without any specific detailed knowledge on FHX, I've just looked at their website and run a couple calculations. Their service doesn't really do anything.

    To begin with, using their Mortgage Calculator shows that immediately using their service your total borrowings increase. This means they charge a fee for what they do. If their service is valuable, good on them.

    But it's not. They can't tell you anything that you can't learn in a few personal finance books.

    1) Attempt to organise a lower interest rate loan with your bank
    2) Apply all spare funds after your usual monthly spending to the mortgage
    3) Profit

    If you want to get even more fancy, you tack on the words "flexible borrowing facility" into step 1, and add in step 2.5: "Move all your monthly spending to a credit card, leave your salary in the flexible facility until the day the card is due, then pay it off using the mortgage"

    Wow, you mean paying off debt faster is as simple as paying extra off it each month? And this saves money, you say? Why doesn't everyone do this!?!?

    You know, you can pay it off even faster by reducing what you spend on other things, and putting that into the mortgage too! That's not even sarcasm. It's just a really good idea.

  3. #3
    Join Date
    Aug 2014
    Posts
    262

    Default

    But their FAQ says I don't have to increase my repayments... We considered moving to a Flexi facility but spend most of our income as soon as it comes in 😁😁 prefer standard repayments that I can't drawdown, like a forced savings scheme.

  4. #4
    Join Date
    Oct 2013
    Posts
    1,628

    Default

    There's simply no way to cut a mortgage repayment term in half without increasing your payments.

    As I mentioned above, using a flexi facility in conjunction with a credit card will save you a fair amount of money each month (say your monthly bills are $3,000, you put this on a credit card interest-free for 50 days, then paying it off with the mortgage) will save you around $200 per year, or say $6,000 over the life of a mortgage.

    But interesting, their FAQ says no credit card involved either.

    I've just read through the FAQ, and found an ambiguity which might make sense:

    3. Do I have to increase my weekly, fortnightly or monthly mortgage repayments?
    No. We prefer that you maintain your existing lifestyle.

    What I suggested wasn't increasing your regular mortgage payments, it was making additional payments on top of the regular ones. I also didn't suggest you decrease your lifestyle, but simply apply any and all spare money to the mortgage. I'd imagine this is what they'll tell you to do.

    In fact, their calculator fails if you tell it you have less than $750 per month left over after your monthly expenses. So that's 100% got to be it.

  5. #5
    Join Date
    Jun 2004
    Posts
    10,416

    Default

    Quote Originally Posted by nicsa122 View Post
    But their FAQ says I don't have to increase my repayments...
    maybe they fudge the truth?
    As anthonyacat says - without putting more money in you can't pay a loan off faster (for the same interest rate).


 

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