Jenny and Peter approached The Loan Company for assistance, as they were coming off a four-year fixed interest rate of 1.99% and were worried about their ability to make the repayments once their loan reverted to a standard variable interest rate of 6.2%.
During the initial interview, their mortgage broker found that they had several other debts – including two car loans ($75k), a small personal loan ($2k), and three credit cards with a total balance of $15k. Combine these with their remaining home loan of $492k, and their concern was understandable.
Furthermore, while discussing their retirement plans in greater detail, another issue arose – namely that their current loan had a term of 26 years remaining, and the clients were already 57 and 58 years old. While they had decent superannuation balances, they did not want to use it all on loan repayments after they retired.
After some discussion around their living expenses and monthly budgets, we landed on the plan of refinancing their home loan and including debt consolidation for their various other loans. They were happy to stay with their current bank, but also willing to change lenders for a better interest rate.
After extensive research by their mortgage broker, we were able to achieve interest rate pricing at 6.12% with their current lender – not as good as other competitors, but the clients preferred to remain with their current bank to keep their finances simplified.
With this in place, we were able to:
This left them surplus money to make additional repayments on their home loan and put away extra savings for retirement! The very definition of a great success story.
Does this sound like you, or someone you know?
Get in touch with The Loan Company and see how we can help!
*Names changed for privacy reasons. All other information is true and accurate.
Disclaimer: The above is provided for informational purposes only and is not intended as financial or legal advice.
