Rands Tax & Business Consultants

Real time case study of Belinda* (real name changed for privacy purpose) Belinda* had a home loan and a car loan


Real time case study of Belinda* (real name changed for privacy purpose)

Belinda* had a home loan and a car loan.

Home loan was $602k. Monthly mortgage payments to bank =          $3,471

Car loan was $70k. Monthly car loan installments =                 $1,373

Total loan =                                                                              $4,814


Belinda was a single mom and the loan was with Belinda’s mother who is in her mid-50s. Belinda had to rely on child support and Centerlink payments to support the loan application. All these criteria as a whole are at acceptable to most of the banks.


Although we are thorough and inside-out with Bank policies, for Belinda’s benefit we carefully analysed each Bank’s policies/terms/rates. Our strong rapport with the lenders also helped us derive precise information, which helped us match the correct product with our client’s circumstances.

With this approach we were successful in getting a lender who was ready to accept Belinda and her Mom’s financial position (income from child support, her mother’s age and Centerlink payments). Belinda who was used to getting a NO from Banks was surprised and delighted that we had found the solution – and the Bank approved it. Her exact words when she heard the news were “Sally you are a legend”.

After the loan refinance, the client’s payment was reduced to  $3,196 from $4,,844 saving her $1648 per month which is nearly $20,000 per annum.

The home loan rate was substantially reduced by 0.5% saving Belinda and her mom nearly $20,000 of interest in 3 years.

After a few months, she recommended me to her friend who was a in different financial circumstance to Belinda. I was glad to hear her words “Belinda recommended you saying you are the best”


Belinda got the loan she was after and we got her a good amount saved off her original repayments. But we did not stop there, as we wanted Belinda to pay off her home loan quickly, which was the main objective of the entire process.

Belinda being our Tax Accounting client, we were well aware of her tax accounting position. Since she was using the car for work, we structured the loan in a such a way that the tax time is less headache for the accountant where the interest is easily derived for the car loan. We encouraged her to pay extra money to the home loan portion, which is more tax effective and allocated 50% of the annual savings to upgrade her home which will add value to her property.

We reviewed her loan when she approached us at during this tax time. Belinda has paid off almost $12,000 of her home loan, in just last one year, using the additional savings from the monthly cashflow.

If she continues being diligent and with my ongoing support, Belinda and her mom could have her home loan paid off within 18 years. In addition, Belinda has renovated their kitchen which adds a substantial value to their property value.


If you are in a situation similar to Belinda and her Mom and thinking of all the Courses to enrol into with those additional savings in hand, then don’t delay and call us.

Being a CPA accountant my motto is budget, cost savings and cashflow savings. We do not arrange a loan to save a quick penny from the drop of the interest rates. Our financial goals are always tailor made to get the max benefit for our clients.

Sally Pietersz is a Mortgage Broker and CPA Accountant affiliated with Rands Tax Solutions Line – Tax Agent Registration number 2539 5774 

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