| Strategy ID | Section | Strategy | Description |
|---|---|---|---|
| 8 | Debt management | Debt Consolidation (maintain loan repayments) | The optmiser considers whether it is worthwhile consolidating debts into an existing debt or alternatively consolidating into a new debt option. |
| 9 | Debt management | Adjust your debt repayments (non-deductible debt) | For each debt, the optimiser will determing the optimal annual repayment based on minimum repayment requirements and where resources are best deployed. |
| 10 | Debt management | Adjust repayment frequency | In an existing loan offers flexibile repayment options, the engine will determine the optimal repayment frequency. |
| 11 | Debt management | Refinance an existing home loan | Advisers are able to set a proposed loan for the engine to consider. Alternatively, a loan can be optimised across the product date that PrimeSolve maintains. If it is optimal to switch providers taking into consideration transactions costs of swithing this recommendion will be triggered. |
| 12 | Debt management | Lump sum debt repayment (reduce home loan) | Recommendation typically occurs if debt repayment is the best allocation of resources give the alternative options, or if debt reduction is a stated client goal. |
| 13 | Debt management | Debt Consolidation (reduce total loan repayments) | This recommendation will be triggered when the optimised scenario has not reduced debt levels but ongoing debt repayments are less due to debt consolidation. |
| 14 | Debt management | Establish a line of credit/split loan | If no debt with a line of credit is currently available, the optimiser must consider whether the set up costs in establishing a loan of this type is worthwhile. |
| 15 | Debt management | Utilise redraw facility | Optimisation engine can use the redraw facility to fund lifestyle or other investment opportunities. |
| 16 | Debt management | Establish a credit card with monthly interest free terms | By drawing on credit card to fund lifestyle, salary can be paid more frequently into the offset account. Provided the credit card is paid at the end of the month, interest over the lifetime of the loan is typically reduced. |
| 17 | Debt management | Clear your home mortgage | Recommendation typically occurs if debt repayment is the best allocation of resources give the alternative options, or if debt reduction is a stated client goal. |
| 18 | Debt management | Convert debt repayments to interest only loan | For this recommendation to occur a loan must be interest only but current repayments are higher than this interest only payment. If these conditions exist the optimisation problem will determine whether scaling repayments back is the optimal allocation of resources. |
| 19 | Debt management | Establish an offset account | If an offset account is not present, the optimiser must consider the costs associated with establishing a new loan versus any ongoing cost savings. |
| 20 | Debt management | New debt (home loan and investment properties) | This recommendation will occur if it is optimal to purchase a new property and/or a new property purchase is a client/s goal, and debt is required to fund the purchase. |
| 21 | Debt management | Increase leverage | An increase in leverage will be recommended when it is required to fund additional growth assets and the overal debt levels are within an acceptable level (this will depend on risk profile), and servicing capability is still satisified. |
| 22 | Debt management | Lump sum debt repayment (investment debt) | Recommendation typically occurs if debt repayment is the best allocation of resources give the alternative options, or if debt reduction is a stated client goal. |
| 23 | Debt management | Pledge asset as security for a loan | Eligible listed assets can be used to contribute to an existing margin loan facility. PrimeSolve tracks the acceptable lending ratios of all the major margin loan providers. |
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