Everyone should have a clear strategy for clearing their loans. For most clients, the primary plan is to clear the loan through principle and interest repayments. Once the loan is cleared, clients can then look to build wealth in other ways by saving the repayments. Once the loan is cleared, clients can then look to build wealth in other ways by saving the repayments through Super or other strategies.
Lenders policies are changing however where they are asking for clear exit plans for every client where the term of the loan approaches or exceeds normal retirement age. This means we are having more involved conversations with our clients about their relevant exit strategies and the importance of detailing this. We support the focus which is to ensure that we clearly understand our clients’ goals and upcoming life events to better understand their needs and to ensure we are providing suitable solutions to their individual needs.