Home Loans & Lifelong Investments

Written by Michael McAlary

Home loan innovation process

The home loan innovation process aims to commercialise new ideas by creating products that customers value at a competitive price. As the world evolves, market research and the observation of customer behaviour lead to the identification of customer challenges. New products emerge aimed at addressing these challenges, e.g. how to simultaneously invest while paying off a home loan? To a large extent, most customer challenges remain unnoticed until product ideas are presented as a solution.

Recent developments and lifelong investments

Major events such as the Global Financial Crisis (GFC) and new regulations can be the trigger for new ideas and accelerate the innovation process. By capitalising on the challenges of the latest era, a high number of product innovations are developed over a short time. The successful introduction of new products is enhanced through public awareness in the social media domain where there is instant customer feedback, e.g. Twitter, Facebook and blogs.

In recent times, superannuation and investing for the future have been the focus of public debate; specifically the trend towards lifelong investments and products which reflect the different phases of someone’s life stage. Notably, paying off home loan debt, investing for one’s retirement from an early age and investing in different asset categories has never been more important than today. Among today’s innovative products are lifecycle funds. The core of these funds is a lifelong investment strategy which follows a predetermined investment plan. These funds work on the basis of changing asset allocation with regard to the investor’s age. The investment strategy at the start is aggressive and risky which allows for higher returns to be generated in their youth and it becomes more defensive as they move towards their retirement with the aim being to protect capital.


WealthMaker Financial Services has considered the challenge and importance of simultaneously investing while paying off a home loan and developed a solution called Aspire. Aspire is a structured mortgage product where there is an investment embedded in the loan repayment. It is more than just a standard home loan as it allows the customer to build wealth in an investment portfolio and equity in their property at the same time. Aspire replicates the home buyer’s life cycle; in the early years the focus is primarily on debt reduction, while in the later years and consistent with life time investments, the product allows customers to be debt free and have an investment portfolio, i.e. Aspire moves from being a home loan to an investment.

Aspire is unique and was created for the benefit of the customer, not the bank. It combines all the features of a standard home loan with an effective long term financial strategy allowing customers to either pay off their home loan early or to own their home plus an investment portfolio at loan maturity. Owner occupied property buyers that are wishing to create wealth but are unsure how to start, Aspire is a long term investment strategy that makes sense.

Aspire also works for investment property buyers as they are mutually paying down their investment property loan and getting asset diversification so that when an investor comes to retire they own their property and an investment portfolio, both of which are income producing assets. With Aspire you are paying down some principal compared to an Interest Only Loan where you do not pay down any principal which means there is a repayment risk at the end of the loan. Particularly, if there is a property crash at or just before they retire.

Aspire is for you

Aspire is at the forefront of home loan product innovation. To find out more about Aspire click on the Contact button above or call 02 9233 1111. Where would you be if you had an Aspire...


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