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Drowning in debt?, we may have a solution to suit your needs.
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| All of our services are obligation free and are also free of any brokerage fees or other hidden costs. Simply use our Online Enquiry Form and tell us your situation and we'll have one of our experienced and qualified loan consultants call you back. Your may also call us direct to discuss your options on 1300 736 976. Please note that our office is currently AVAILABLE TO TAKE PHONE ENQUIRIES Mon-Fri 8:30am to 5pm AEST to Callers. |
If you have Credit Card or Personal Loan Debt and believe that you have a strong equity position in your home, then you may consider consolidating all of your debts into your Home Loan to relieve the monthly payment pressure. Here is an example of how this may be of benefit to you (1).
SCENARIO
You own a home worth $500,000 (and you owe $200,000 to the Bank). Your monthly home loan payment (Principal & Interest) is $1,488 (7.57% over 25 years). You also owe $10,000 on your Credit Card (which you are paying off at the rate of $350 per month) and also have a Car Loan with monthly payments of $800 (still owe $15,000). You also need $40,000 to organise some sorely needed renovations.
A SOLUTION
Your current loan repayments total $2,638 per month. You decide to consolidate all of your debts into a single loan of $265,000 (which includes the $40,000 for renovations). Your new payment is now $1,758 per month, saving you $880 per month and ALSO giving you an extra $40,000 for renovations (6.97% P&I over 30 years).
NOTE
The actual savings will depend on your current repayments and the interest rate applicable on the new loan. The above scenario is possible, but not all applicants may qualify for a saving of this nature. |
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Straight forward debt consolidation example
SCENARIO
Applicants owed $320,000 on their home worth $475,000. They were paying $1,750 per month on their current home loan as
well as over $1,000 per month on various credit cards and personal loans (one of the Applicants had been ill for some time and the bills had
creeped up over a period of 6 months). They wanted to consolidate all of their debts into one loan. The primary Applicant was self employed
but did not have up to date Tax figures.
OUR SOLUTION
Based on the primary Applicants' expected earnings for the last 2 years as well as the fact that both Applicants had spotless credit, we
were able to refinance them into an 80%
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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loan and pay out all of their debts. Their new loan was for $362,500 and
their new repayments were reduced to $2,445 per month (a fixed 3 year principal & interest loan at 7.14%).
Although the savings were not significant, the Applicants' were more comfortable with a single monthly payment to one
Lender. They were also very happy with the fixed 3 year rate that they were able to obtain at the time.
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More than 50% home equity but too much debt
SCENARIO
Applicant owned a property worth $320,000 (owing $115,000) but was swamped with debt (Credit Cards and Personal Loans). Her home was
also falling apart and it needed $30,000 spent on it urgently. Additionally, her fridge had broken down and she was having other
problems that needed an urgent cash injection to resolve. Added to this, she had 3 defaults registered on her Credit report as well as some late
payments on her current home loan. All in all, she was currently paying over $2,500 in repayments and still had more money to
spend. She had been long term employed in a government job and her income could easily service a loan of $180,000. She approached
us to see if there was any solution to her problem.
OUR SOLUTION
Given her credit situation and mortgage repayment history, we were unable to place the business with a mainstream Lender (eg: a Bank), but
did have options with a
Non Conforming
A Non Conforming Loan is suitable for people that have (amongst other reasons):
a) Credit Problems (Defaults, Judgements etc)
b) Poor loan repayment history
c) Wish to borrow more than 80%
LVR
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The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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d) Have income sources that the banks normally do not recognise
They are essentially "out of the square loans" and usually carry an interest rate premium (which can be minimal, depending on the
LVR
|
The LVR (Loan-to-Value-Ratio) describes how much you can borrow as a percentage of the value of the offered security property(s).
For example: You are offering 2 houses as security worth a combined $500,000. You wish to borrow $350,000 in total.
The LVR is 70% in this case ($350,000 divided by $500,000 times 100).
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). They very much have a place in mainstream lending and provide solutions for applicants who are unable to obtain a loan through normal lending channels. |
Lender.
We succesfully negotiated a Loan on her behalf for $180,000, which saw all of her existing loans paid out plus "cash back" of $40,000,
which allowed her to attend to the renovations and to address the other issues to hand. Her new mortgage repayment was reduced to $1,473 per month,
which reduced her monthly payment by over $1,000 per month and also gave her additional cash to complete her renovations.
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Not sure of your options?? ... call us on 1300 736 976 to find out.
Our office is currently AVAILABLE TO TAKE PHONE ENQUIRIES Mon-Fri 8:30am to 5pm AEST to Callers.
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