Mortgage Broker Banora Point
Davies Home Loans can help with loans for almost any Australian Property but we like to focus on the QLD Gold Coast and NSW Northern Rivers areas. Sometimes a story about a particular suburb and particular person can help people understand what makes us different.
Sometimes life takes over and then one day you realise you have too many credit cards, perhaps a car loan or two and when added to a Banora Point home loan there is just no spare money at the end of the month. This is where a debt consolidation can help. But how does it all work? We think it is easiest demonstrated with and example and how our mortgage broker Banora Point helped (names have been changed for privacy reasons).
Jack and Jill have a nice home in Banora Point, they both have jobs and the kids have all left home and now they want to work toward retirement. Luckily they had a friend that referred them to us, but they could have just done an internet search for Mortgage Broker Banora Point to find us.
When they came to Davies Home Loans they had a home loan costing $2,560 per month, a small addition loan secured to the home from a past debt consolidation costing $660 per month, a car loan at $654 per month, a personal loan with repayments of $630 per month and 3 credit cards with combined repayments of $460 per month. This was seven debts with total monthly payments of $4,964. Some of the credit cards were at their limit and each month when interest was added, they went over the limit, which complicated things as loans statements for debt consolidation generally need to have no over limit or late payments for the past 3-6 months.
The main problem they faced was that the Big 4 banks don’t like combining more than 4 debts together and if they only combined four debts, the cost of the remaining debt payments meant that those banks calculated that they could not afford to borrow with them. Also the over limit events on the credit cards caused some extra problems.
Our Mortgage Broker guided Jack and Jill on how to tidy things up to become more appealing to lenders, they listened and did a great job. After 6 months we were able to present them to a lender, consolidate five debts and access sufficient equity to clear the other debts themselves. They were fortunate that their home had sufficient equity, even though Lenders Mortgage Insurance (LMI) of $6,657 was required to be added to the loan. The new home loan (including the capitalised LMI) now has repayments of $2,521. This is a saving of $2,443 each month which meant that after three months they had recovered the refinancing cost (including LMI) and each month after that is now a significant saving allowing future plans to proceed.
To put this into a bigger perspective, they are now saving $29,316 per year on their loan repayments, which makes a massive difference to their future. Davies Home Loans Mortgage Broker Banora Point was thrilled to be a part of this and look forward to helping others with a similar situation.