Enlighten Financial Solutions - Mortgage Brokers Australia Finance options

Refinancing and Debt Consolidation

Refinancing is a very common occurrence and talked about widely but the term “debt consolidation” seems to make many people feel embarrassed when they should actually be proud.

We quite often help clients refinance their home loan and will include a debt consolidation at the same time. Anything from a car loan, credit card debt, personal loan, store card, ATO tax debt and even HECs/HELP can be rolled into a refinance if there is available equity in the home and the loan demonstrates serviceability.

It may sound daunting but in reality it’s just a few simple steps that can help make your finances much more manageable. By getting rid of multiple monthly repayments and having one loan, usually with an interest rate much lower than the facilities we are closing, you will see an instant improvement in your cash flow. Borrowing capacity is instantly increased when these facilities are closed which is often a motivator for many people as they work towards future goals.

We love calculating the savings we are helping our clients achieve and I must share, our biggest and most successful refinance and debt consolidation to date was an annual savings in $42,000 a year in repayments. Yes that’s right, after the consolidation of 5 facilities, the clients repayments were $42,000 LOWER! Needless to say, this was a life changing achievement for them.

Our process in helping clients achieve a positive outcome:

  1. The first thing we do is have your property valued. This will determine the loan to value ratio (LVR) which is important to know when calculating how available equity there is and how much money you can potentially borrow.
  2. We don’t settle for one valuation and will often order quite a few to find the best result and determine the most suitable lender. A higher valuation means more equity is available which then equates to potentially more money to consolidate debt, renovate, invest, buy a car or withdraw for other uses.
  3. After an in depth conversation with you we will analyse how much debt you can realistically add to your home loan using the equity available. The serviceability of this loan will then be investigated by us and we will determine the best lender to meet your requirements.
  4. Once the loan is approved then settles, your other debts will be paid off and closed and they will be added to your mortgage repayments. No more multiple direct debits going out every month!

 

Streamlining your finances through debt consolidation is a great way to make your life simpler. We make the process even easier by finding the best lender for your individual needs and will negotiate on your behalf.

If you have any questions about refinancing and debt consolidation feel free to book a complimentary meeting soon via our online booking system. 100% off our clients who refinance and debt consolidate save money so we would love to help you achieve the same!

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