Debt Consolidation Home Loan - As the wording describes it is utilising your home loan to consolidate debt. Though as is always the case, its not as easy and simple as it sounds. Each client scenario is completely different which keeps us on our toes, and is one of the reason why we love what we do. Firstly, i will start by saying all loan products are not the same, and the interest rate and fees associated can vary dramatically. The reason for this is one of the fundamental questions nobody every really thinks of - Where does the money come from? With the recent issues concerning the GFC (Global Financial Crisis) manay people have begun to realise the money for you loans comes from some one or a corporation somewhere. These entities purpose is profit and investment return. Therefore wholesale interest rate and fee for risk is where the profits are made, and then there is the delivery costs such as the lenders fees and risk insurance. Now, moving onto a simple Debt Consolidation Home loan - I will start by looking at interest rate. Interest rate for a debt consolidation home loan can vary drastically, with various products having differences in interest rate sometimes up to 4% or more. This is becuase the investor want a return based on the risk in lending the money to you. The investor does not know you from any other of the million of people applying for a loan. Therefore they will look at a range of circumstances they will lend for. For example - refinancing bad debts equals high risk as the funder does not really know if the applicant has moved past their habit, or financial predicament so they will charge a premium for lending the money. The next purpose is to consolidate 2 credit cards, the client has been employed in the same job for 5 years, never late on any mortgage payments, and never over limit on their credit cards or any personal loans - this client presents a low risk client and appeals to the investor who is happy with a lower safer return.
We use all our skills to find the best interest rate and fees for your particular purpose. If the loan isn’t packaged the right way, you may appeal only to an investor who is attracted to higher riskier returns. Packaging your application in the right way and pushing for the small detail to be viewed in the right context is our specialty, and can make all the difference toachieving a better product for your circumstances. Since the GFC the gap between Prime Loans such as the everyday Big 4 loans, and loans for the Credit Impaired has widened considerably. Non Conforming or Debt Consolidation Home Loan Lending has become more specialised than it has ever been. The average broker simply does not have the expertise to obtain the most competetive interest rate and fees structure. If you have any further questions, please feel free to call us on 1300 796 850 for an obligation free proposal. Obligation free, funny term, but if you read our previous posts we will give you an assessment and provide you directions for your needs. If this involves directing you elsewhere, we will do that. If we believe we can offer you a solution, we will not waste yours or our time by giving incorrect, misguided, or false information. Call us on 1300 796 850 or Apply for a Loan.