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.

Using your Mortgage for Debt Consolidation

Benefits of Consolidating Unsecured Debt to your Mortgage

Trying to have a hold on all of your debt can be difficult at the best of times. You may have multiple loans and debts for multiple reasons; debt consolidation can help reduce your overall repayment and manage your debt more effectively. Debt consolidation is simple; it brings all of the debt together under one single loan. Many people consolidate their loan into their mortgage, making it easier to bring it all together. There are multiple benefits to bringing all debt into one, but there are four major benefits of consolidating unsecured debt to your mortgage.

Does the Interest Rate make a difference?

By using Debt Consolidation, you can actually lower your overall interest rate that you are paying. The idea is that you are moving all of your debt to one location; this often requires the need to re-configure and restructure an existing loan. If you consolidate your loans, certain debts may be a lower interest rate because the new interest rate is better than the old one. While this may not happen with all debts, just because the new loan is being stretched over a longer period may reduce the repayment and hence make the loan more manageable. For example:

• The repayment on a $20,000 loan at 11% over 3 years is $652 per month. If this loan was consolidated into a 30 year mortgage with the same interest rate the repayment would be $190 each month. Effectively releasing cash flow of $462 each month.

The above example shows how people can get a handle on their finances. It could help you afford your monthly payments, where you may not have been able to as separate debts.

Why use a Mortgage to secure the debt?

The loan options available to consolidate your debt are using a Secured Consolidation Loan or an Unsecured Consolidation Loan. When a lender has security against a loan product they will offer you a higher loan amount and a better interest rate. Both these features allow a better result when consolidating your debts. A low loan amount may prevent you from consolidating all of your debts. At times this may prevent you from obtaining a Debt Consolidation Loan all together.

Convenience and Simplicity

The most exciting benefit of debt consolidation, however, is the simple convenience factor. By consolidating your debts, you are bringing all of your debt into one place. Many people often have 3, 4, or 5 loans and sometimes up to 10 loans; this can be very difficult to manage and keep all of your loan agreements. Paying one lender, with one interest rate, and one monthly payment can make your finances significantly simpler to manage.

Conclusion

Many people bring their loans together through debt consolidation as a way to make their lives easier and simpler; debt is never fun for anyone, but debt consolidation allows you to manage your debt more effectively and take control. Consolidation can allow for lower monthly payments, and the convenience of having it all in one place. Consolidating your debt into a mortgage is an even better way to bring everything together under one roof; and make your debt work for you a little more. To find out if Debt Consolidation is right for your, Contact us below.

This loan is designed for salaried or self employed people and is available for the purpose of financing personal, business, investment or debt consolidation needs. With this loan you can:

• Borrow from $50,000 up to $2.5 million, for a period of 10 to 30 years
• Obtain up to 90% Loan to Value Ratio with paying the Lenders Mortgage Insurance premium
• Chose from a variable interest rate or a fixed rate for 3 years
• Repay your loan monthly, fortnightly or weekly including by direct debit
• Step down to a lower variable rate from the 3rd anniversary of settlement provided you have no arrears on your loan and have not missed any repayments
• Chose a Line of Credit facility, including phone or internet, ATM and EFTPOS Access and monthly statements. This loan is ideal for people with a clear or bad credit history who:
• May need to borrow more money than the limits imposed by tradition lenders
• Have an inconsistent or inadequate savings history
• Have an unusual deposit, such as a gift.

With this loan you will need to provide proof of income in the form of pay slips, letter from your employer, group certificates, tax returns or, if applicable Centrelink letters or superannuation investments statements.

Loan Saver Network will look at your individual situation and provide clear advice, guidance and assistance to help you move forward and where possible obtain the funds you need to get your life back on track. A debt consolidation loan can help you achieve a more sustainable financial future.

Debt Negotiation is the art of negotiating loans and debts to an a lower than original figure. Debt Negotiation is required in circumstances where there is insufficient equity to consolidate debt into a mortgage, or even to reduce the level of debt (when consolidating) to an acceptable repayment. Debt Negotiation and Debt Consolidation work closely together at Loan saver Network. Below is a true life example of how Debt Negotiation and Debt Consolidation loans can work hand in hand to give a very effective result.

John and Teresa had been through a string of business and investment disasters, that had left them in a situation where they had $135,000 in credit cards and personal loans. They werte both on very good incomes but they were struggling to get make their home repayments and had fallen behind on most of the credit cards and other loans. They were being faced with selling thier home and starting again, but they would have still been left with a sizeable number of debts. They were paying only $1100 on their home loan, but $2600 each month on their other debts totalling $3700 pcm. Loan Saver Network took a look at their situation and effected a Debt Consolidation Refinance and Debt Negotiation. We found their properties was valued at $240,000 with only a $130,000 loan against the property. The lending policies at the time only allowed in their circumstance a loan up to $216,000 giving them $86,000 available to consolidate all of their debts. The outstading debts required a debt negotiation from $135,000 to $86,000, a reduction of $49,000.

The end result is that we used Debt Negotiation to negotiate the debts, and refinanced the home loan with a Debt Consolidation loan. Their final loan repayment on $216,000 is $1710 per month. We saved them $49,000 on their loans, and $1990 each month on their repayments.

See Debt Consolidation for more information or Contact Us for more information.

David was a fully employed office worker in his mid-thirties on a salary package which comfortably supported his day to day expenses and that of his family including his month mortage payments on the family’s home, car loans and minimum payments on his credit cards. Unexpectedly he developed a gall bladder problem which caused him to lose control of his bowels. Because of the nature of his condition, he was forced to take six months off work for treatment until he was fully recovered. During this six month period with no income coming in, the family was forced to pay for their daily living expenses with credit cards. David was not in a position to pay his loans and defaulted on his mortgage and car loans. His loans looked like the following:- Mortgage: $202,000 at $1550pcmCredit Card: $22,000 at $660pcm. Also in default with debt agreement to pay $10,000 to close account.Car Loan 1: $13,000 at $390pcm (3 months behind)

Car Loan 2: $29,000 at $900pcm (3 months behind)

The critical things to consider in this situation were:

• Bank was ready to foreclose on his home and both car loans
• Credit card company was willing to take 10k to close the account.- Home Value: $330,000
• Total Loans: $ 254,000
• Current repayments: $3500 Upon his recovery, David assessed his situation and realised that it was impossible for him to try and pay off all his defaulted loan repayments, credit cards as well as interest and penalities etc associated with each of his loans. After being refused loans from a number of possible lenders and being faced with the possibilty of losing his family home, David was advised by a close friend to approach a debt consolidation specialist. Having looked at David’s loan particulars and record, the debt consolidation expert worked out the following deal for him:

Refinance all Davids loans into one facility.
Loan: $254,000

Repayment: $2438

David reduced his outgoings by nearly $1000 per month, but best of all now has all the lenders off his back. He is now able to put the past in the past and move forward.

Debt Consolidation Loans are saving various families like David’s from losing everything they have worked hard for. It is hence imerative that if you are in a similar situation to know how a Debt Consolidation Loan could help you. Consult a Debt Consolidation specialist to get expert guidance on consolidating all your debts into one single debt for your future financial well being.

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