Our Story

Hello, my name is Warwick Foster,

I co-founded Mortgage Miser because I am passionate about helping families pay down their mortgage faster and get control of personal debt. In a word I want to give people HOPE.

Home mortgages are the largest forgotten debt people have. In Australia the average family will pay double the value of their home to their banks. Half of that is interest. Banks are great at lending money but they are not as interested in helping people save money. What they focus on is making record profits on home loans and personal debt, day after day after day.

I know what it is like to struggle with personal debt. As a single guy I racked up credit card debt even when the money was coming in and struggled under the weight of repayments. I worked past it but not without learning some lessons.

When I first entered into a mortgage, I had a basic understanding of how to pay of the loan faster but not the right plan on how to get ahead. My mortgage enabled me to get into our home other than that I did not pay attention to it.

Needless to say the bank was happy with this scenario.

At university I studied computer science and accounting. Through that and my work I was able to learn about the mathematical side of mortgages. Let’s have a look at what I found …

Mortgage Mathematics

Generally home loans are designed to benefit the lender. Mortgages are described as Principle and Interest Loans but here is a graph of loan repayments that shows what portion of the repayment is Interest and which is Principle.

Assumptions This is a loan for $340,000 over 30 years at 4.9%. This results in a repayment of $1,800 per month for 30 years. click to see more

The banks organise their loan systems so that you pay off most of the Interest to them first. This is clearer in the second graph where in the first fifteen years of the loan most of the money goes to the bank. During the initial stages of a loan very little of the actual amount you borrowed (called ‘Principle’), is being paid off so the actual amount you borrowed reduces very slowly. The banks can continue to take more interest from you that way because your principle balance remains higher for longer.

You can clearly see the average loan situation in the graph below shows the size of the Interest and Principle against each other over the average 30 year loan term. Wouldn’t it be great if they were the other way around? What’s interesting though is there is a crossover point just after halfway. After the halfway point more and more principle is being used to pay down the loan which increases the speed of the mortgage coming to an end.

Cofounder David Box and I have known each other for about six years and discussed and analysed ideas relating to mortgage management and personal finance. David and I discussed different ideas for managing debt and reducing the interest we pay on expenses and lifestyle choices. Our own experience as well as encounters through our personal and work interests became the impetus for developing these Mortgage Miser strategies to help people become smarter about their financial choices.

What we found was a suite of really solid stable ideas that when put together gave a solid path for people to get control of their mortgage. The goal of our program is to teach people how to shift the “cross over” to the left so you can pay out your mortgage sooner.

These strategies work and families benefit. During his career as a mortgage broker David suggested these ideas to a couple in 2012. Here is what they had to say …

Testimony – October 2015

“In 2012 we were in serious trouble with our credit cards and our home loan when we were introduced to David Box. We have since reduced our home loan by $60,000-00, paid off our credit cards and we are keeping on top of our finances by making the two simple changes David suggested.”

“We are years ahead and we will be paying off our home loan in approximately 7 years, instead of 30 years. If we can do it anyone else with an open mind can from what we learnt from David.”

Mr & Mrs G, Self Employed Painter & Teacher,
Cranbourne North, Vic.

Working with David we tightened concepts into workable strategies and I produced the visual models to David’s ideas. We worked on these models to create the initial Mortgage Miser website. We established methods that:

Refining the ideas over the last twelve months we established our Company Mission Statement:

Mortgage Miser is an Australian owned company that has a singular focus to set you free from the burden of your mortgage.

What we would like to do is meet with you and explain to you how to bring down your mortgage faster.

If you are in a situation where you want to see how to pay down your mortgage faster, learn how to get control of personal debt, and be financially free please fill in the following survey and we will contact you to organise for a sales consultant to make a time and take you through the Mortgage Miser system.

Thank you!